When you run a business, every penny counts, so you won’t want to spend money on something you don’t need. This is why it’s so important to weigh the pros and cons of every purchase you make to make sure your money is well spent.
This decision-making process is very important when it comes to company cars. You might already know that you need some vehicles to make deliveries or visit clients, but if you’re not sure because you like the idea of giving your team vehicles but aren’t sure if the cost is worth it, keep reading. Here are some reasons why company cars are important.
Cost-Efficient
One reason you might not want to run a company car (or several company cars) is because of the cost. Not only will it cost you money to buy or lease the vehicles, but there are also ongoing costs like taxes, repairs, and gas. All of this can add up to a lot, and it might even be too expensive right now to buy company cars.
But if you can afford it, there are many ways to make leasing or owning commercial vehicles less expensive. For one thing, you can use them to lower your business’s tax bill. If you’re not sure what to do, an accountant can help you figure this out. Also, you can look online for advice and read informative articles such as the one giving facts about fleet management titled 8 Fuel Management Strategies To Keep Your Fleet Running Smoothly and more. So, buying company cars might seem expensive at first, but there are a lot of things you can do to lower the price.
Attract Employees
If you want your business to do well, you need to make sure you hire the best people. If your team isn’t very good, the work you do won’t be either. Because of this, you should do everything you can to get good workers. There are many ways to do this, but the best thing you can do is give them a variety of incentives and benefits to work for you. The company car is one of these ideas.
If someone has the option between working somewhere that gives them a new company vehicle and somewhere that doesn’t, they’ll probably at least think about the company that gives them more, and they’ll usually apply for the job. Even though they will have to pay taxes on that car, they can save money in the long run by buying a used one. When you give employees a company vehicle, you’ll have a lot more options for who to hire, and you won’t have to settle for less than the best.
Marketing
Marketing is hard to do right, and it often costs a lot of money to do it well. You need to know that the things you spend money on are worth it and will work. For example, you need to know that the right people are seeing your ads.
One way to make sure that people will notice your marketing is to wrap your company vehicles in your marketing materials. Depending on what you want to say, this could be a full ad or just the name and website of your business. However, the fact that these vehicles are on the road all day and will be seen by hundreds or even thousands of people makes them the perfect marketing tool.
Quicker Deliveries
Companies of all kinds need to deliver goods or move stock. You can always use the mail or couriers, but if you have your own car, that might be an even better option.
If you have a company car, you can make deliveries to customers faster. For example, many furniture companies use moving vans to help move and set up items in customers’ homes. But even small businesses that sell only a few items can benefit from having a truck for delivery services.
If the fact that you have company cars that can be used to deliver small goods to customers means you can deliver these things faster than your competition, that has to be a benefit, and it will put you at a great advantage when it comes to who people choose to buy from.
Provide More Services
Company cars are useful for more than just businesses that deliver goods. They are also used to help customers get services quickly and well.
There are many different kinds of businesses that use company vehicles to serve customers. For example, tradespeople often use vans to bring their tools to the homes of their customers. Even salespeople often drive from house to house in company cars. Having a car is helpful if you serve customers in their homes or at other places of business as it means every member of your team can do their job efficiently.
Improve Your Company’s Reputation
Having a company car can make your company look bigger and more professional. Customers or clients will be more likely to do business with you if they hear you use your own vehicles to do your job.
Since having a vehicle also makes it easier to get products or services to customers quickly, it also makes customers happier. Customers who are happy are more likely to tell their friends about you and use you again. It always helps to have a better name.
New Cars
The great thing about getting a company car is that, due to various incentives and deductions, you can generally buy a brand new car – or very close to brand new – without spending as much as you might usually do. Not only will this save your business money, but it will be another way to enhance its reputation.
What’s even better, however, is that because newer cars tend to be safer to drive as technology gets better over time, you might also be able to have lower insurance rates and protect your team more – after all, if they’re in a new car and are less likely to be involved in an accident, that has to be a good thing overall.
