More and more companies are introducing company cars for their employees. The perks of this go beyond what you might think. Read on to learn about all the benefits for staff and the employer.
What is a company car?
A company car is a vehicle the company provides to some employees, usually for work and personal use. Most employees with a company car will regularly drive for work, such as being out on the road frequently. An example would be a regional sales manager who visits clients across the country and many other business roles with similar requirements.
Can anyone have a company car?
A company car is usually reserved for the owner and directors of the business and some senior managers. Though it might sound like a fantastic perk to offer an employee, not all employees will jump at the opportunity to have their standard of living boosted by a company car. It’s a personal decision which is best made case-by-case by you.
How does a company car scheme work?
When a director or employee is given a company car, the vehicle will be paid for by the business on top of their salary. Employees who use a company car for work may have to pay Benefit-in-Kind tax. This is calculated based on the vehicle’s market price and the employee’s income tax band, which varies according to age and level of CO2 emissions. (hybrid and electric cars benefit from much lower tax obligations).
The benefits of a company car
The perk of a company car is often used for executives or managers due to the multiple benefits that come with it.
The vehicle is paid for by the business each month, which means that the worker does not have to worry about a lot of financial obligations involved with buying a car.
Fewer costs for the employee: It’s typical for the company to cover the insurance, maintenance, servicing and MOTs. Using fuel for work-related travel might be expensive, but some companies will care for their employees and have them pay a significantly lower tax called Benefit-in-Kind.
Attract top talent: A company car can be one of the most popular perks to offer and should therefore play a leading role in attracting suitable candidates towards C-level positions.
Reduce the risk of losing clients due to delays: If your employees rely on trains and taxis, cancellations and delays could affect them in various ways. For example, missing a client meeting or an industry event because of travel delays could have serious ramifications for the company and director. However, with company cars, they need only consider heavy traffic to know they’ll always be on time; this is one advantage of using them.
Save money: Switch out the train, bus and taxi fares for a company car. It might not be cheap, but it’s a better financial decision.
The benefits of company car leasing
There’s also the option to lease cars at work. This can become even more affordable and strategic because of the following reasons:
Leasing a vehicle is the best option if you want to avoid depreciation and retain the car’s value.
Have you got cars to keep up with your growing fleet? It’s a hassle trying to sell them, so leave the selling to us. We’ll trade out your lease car at the end of its term, and you’ll be on your way with a new one.
Your business needs better vehicles to represent your brand. With leased company cars, you can choose from various makes and models. Cars and other vehicles are a crucial part of business, so enabling your employees to acquire the right car for their budget will help improve morale and prevent bad public representation. (As a bonus, a modular vehicle wrap means your staff are advertising all day long.)
Choose from a wide range of vehicles, or use your budget and select from various exceptional features. These include the latest safety features and in-car technology -features that would otherwise be too pricey!
Are there any drawbacks to company vehicles?
Company vehicles have many advantages, but there is always a trade-off to consider. For example, when considering whether to provide company cars, you should also consider the factors, including cost and compliance, that may affect whether you can work with a company car. In addition, as the company is paying for the vehicle (either as a financial contract or a lease), this cost needs to be included in your budget and forecasting.
Liability: Even the most careful drivers can have accidents, creating more costs for your company.
Having your car as a perk might seem great on paper, but some pretty hefty conditions are attached. First, the employee should understand that they can lose the vehicle if they leave the company and must return it soon after.
High-impact branding for company cars
Brandfixx has been offering car wraps for years. Here at Brandfixx, we provide a speedy, affordable and sustainable alternative to traditional vinyl wraps stretching over the entire car. If you want to give your car detailing that little something extra, we can create modular decals that can be applied to every panel of your vehicle. This will save a lot of time and cost. This branding solution is perfect for many business vehicles, including company car fleets and taxis.
The modular wrap option is great because if there’s a scratch or scuff in one section, you only have to replace that part of the wrap, which isn’t as time-consuming as taking off the whole thing and starting over. Custom-made modular vehicle wraps are a cost-effective and sustainable choice for businesses of all sizes!
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