Buying a company car is not as easy as having one and owning it personally. There are a lot of things that you must consider before you purchase one for your company. Here are some tips that you should consider when purchasing a new car.
Why are you buying a company car?
The big question is, why? But of course, this is not the only question that you must answer before you buy a company car. Is buying one a need or something that you just want for your business? And speaking of business, is your company big enough to actually have one? Some people think that having company cars is a good way to promote and advertise their company. You might be buying a car as a bonus for your employee, especially if you invest in something like the BMW company car fleet, as an incentive for someone or as a way to further promote your business through advertising on the car – or a combination of all three. Isolate the reason you’re buying a car, so that you can ensure you find one that meets your purpose.
Pros of Having a Company Car
Having business vehicles can promote good PR within the company. Why? Well, your employees do not need to use their private vehicles for business trips and errands. They will be able to save money and they do not have to be wholly responsible for the damages on the vehicle. In short, company cars protect your employees and you get to play the good owner. You might also find that a company car is a nicer car than your employees can personally afford and that having a company car is a sign of prestige and recognition, which can ensure your employees are loyal and motivated.
Moreover, it appears professional when your employees use company cars. Depending on where you live, you might have sales tax advantages when you purchase company cars, which can make it even more affordable that you previously thought. The other great thing about a company car is that it is a great incentive for your employees. Even though cars will depreciate slowly over time, it’s still an asset your company will have even if your employee chooses to leave.
Investing in insurance
Make sure that your company car is insured. Insurance protects you, the company, and the employee, and it prevents anyone from having to pay a huge amount for repairing damages. There’s no price you can put on peace of mind – and you can generally write of the company car insurance as a business expense.
Buying a company car is very exciting, but just make sure you take the time to properly research your options and motvations before making a decision.