Should Your Company Get a Corporate Car?
There are several things to consider when deciding whether to buy a company car or not. Corporate cars are not for every company, and some companies are better without them. Other companies rely heavily on company cars for business continuity. Below are some criteria to keep in mind.
Will a Company Car Make Your Company More Successful?
According to Houston Overhead Door, a provider of roll up garages, convenience is a big factor in deciding whether or not to invest in a company car. If your company has a lot of meetings outside the office, a company car might be a good investment. If the car will be used to show the success of the company when arriving at outside meetings, a luxury car should be considered. Giving the first impression that your company is successful by having that luxury company car could really make a difference in the success of your company.
Keep the Main Purpose in Mind
If the company car's purpose is simply to transport sales people to appointments, transport work crews to job sites, or transport maids or computer gurus to off-site locations, then luxury cars are not the best option. Keep the car options basic. Get something reliable and good on gas. Hybrids are a great idea for those who are green-friendly. If the car is meant to haul tools or other materials, or possibly tow a trailer, getting a larger vehicle will be more economical than trying to get the smallest car possible. By putting stress or a load on a smaller car, the gas mileage will go down and any savings by getting the smaller car will be lost.
The Impact to Your Company's Bottom Line
Getting a company car could really make a difference on your company's bottom line. By providing a company car, you could avoid paying more to sales people for their transportation expenses because the car is provided. Then, in turn, you could write off the mileage and car related expenses on taxes, bringing down both the tax load and payroll while providing a benefit to your employees that other companies do not offer.
Without careful management, adding a corporate car could become a drain on your company's resources. This expense has to be closely monitored. Make sure all mileage going into your company car is benefiting your business.
Using the car for advertisement is a very good way to take advantage of the company car even when it just sitting parked. Make sure to utilize this resource and possibly use some of the marketing budget toward the company car expense. Positive press and exposure isn't easy to quantify, but it definitely works. Make sure to put your company's name along with its phone number on the vehicle to capture that extra publicity.
The Future of Corporate Travel
Corporate travel has not changed much over the past decade. This lapse in evolution could be followed by a quick boom of progress. The manager or vice president in charge of corporate travel may be given expanded responsibilities over the corporate fleet, whereas any streamlining could lead to carpooling or even sharing a car with another company if the companies involved are smaller.
This article was contributed on behalf of Houston Overhead Door. Get Wood Garage Doors in Houston today!