Investing in a Company Car for 2023
Investing in a Company Car for 2023
As we work our way through December, many of us will find that our businesses are operating at full capacity, striving hard to hit sales targets and effectively manage the busiest sales period of the year. Once we hit Christmas Day, things will begin to wind down and we can take a moment to reflect on the twelve months behind us and plan for the twelve months ahead. This will be the time to start making positive changes that can help us to drive our business further forward, enhancing operations, maximizing sales and generating profits.
One area you might want to take into consideration when planning for your business’ future is company cars. Company cars can benefit your business in many ways and now may be a good time to start looking into whether this investment is worth it or not. Here’s some advice and guidance that can help you out in this decision making process.
The Benefits of a Company Car
There are, needless to say, countless benefits that come hand in hand with having a company car. Public transport is great, but when it comes to getting to meetings on time, with minimal delay and without having to face the elements, having your own set of wheels tends to be much preferable. If you are providing employees with a company car, you will be able to choose from a wider pool of candidates and your job positions will be much more appealing.
The Responsibilities
Of course, all benefits tend to come hand in hand with some responsibilities. It’s important that you consider the overall cost of running a company car before committing to finance agreements or leases. The main responsibility of a company car is covering the cost. You need to create an affordable budget and stick to it. Whether you cover the cost of the car, or you give employees a car allowance to contribute to a car of their choice, you need to make sure that the figure you settle on is affordable and sustainable long term. You will also need to make sure that all vehicles you are taking responsibility for are taxed and insured. Also consider maintenance costs, which can be taken care of by professionals like Hunter Engineering.
Ground Rules
If you’re only investing in a company car for yourself, you will likely take care of your investment without even having to think about it. But when it comes to investing in company vehicles for staff, you will likely need to set out some ground rules regarding use of the vehicle. This will ensure that everyone uses their vehicle fairly, responsibly and without incurring charges and costs. Make sure that you come to an agreement regarding matters such as who is responsible for car maintenance, who is responsible for fuel costs, who is responsible for repair costs and more. You should also outline rules for usage, such as whether the vehicle can be used for personal use, or whether it is for business use only.
Hopefully, some of the information outlined above will guide you on your journey to deciding whether a company car is a good idea for your business!
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