Thinking of getting a company car? Consider these factors first
worldexecutivesdigest.com | Thinking of getting a company car? Consider these factors first | Whether you use it for deliveries, getting to client meetings, or simply as a perk to motivate employees, a company car can boost your business image and make you look more professional. However, choosing the right vehicle for your business is no easy task. In addition to the financial aspects of owning a vehicle fleet, you also need to consider other factors, such as environmental impact and what type of vehicle matches your brand identity. Remember that a company vehicle is an extension of your business image and although money is important, you should first make sure your new car has what it takes to serve you in the long run.
Should you lease or buy a company car?
Many business owners would need a company car but they postpone getting one because they can’t afford it. If you’re in this situation too, then leasing is always an option. This way, you’ll cut costs and because things like maintenance and repairs are included in the lease price, you won’t have to worry too much about it either.
Renting a business car is also a good idea when you wouldn’t use it every day. For example, if you only need a car occasionally to pick up a client from the airport or make a business trip, buying a car isn’t good value for money. Or for entertainment purposes, say you were in Tuscon and you need a party bus available in Tucson. Renting is ok. So, when you can rent one, use it for however long you need, and then return it. However, if you or the employees need the car every day for a few years to come, then the price of the lease will add up and in the long run, you’ll end up paying much more for it.
How will you be using the company car?
Many times, the words “company car” make us think of a luxurious limousine or saloon. And if you’re an executive who only needs to go to and from meetings, that’s definitely the right car for you. However, if you want to be practical, you should also try to save money and see how you can get modern features such as infotainment systems and luxury interiors without spending a fortune. One way to do this is why looking at previous versions of recently upgraded cars. For example, the 2020 Ford Escape is a great option for a small business owner, but if you look at a 2019 Ford Escape vs 2020 Ford Escape comparison, you’ll see that the differences aren’t that dramatic and last year’s version is a great way of balancing costs and features.
When choosing a car for your business, you should keep in mind several other things. For example, if an employee will be using it for a long commute, then you should obviously look at fuel efficiency. If you’ll be using it for deliveries, then you should look into other vehicle categories, such as minivans and trucks.
What does the car say about your business?
First impressions matter when meeting clients and business partners and the car you use speaks volumes about your business. So, make sure you choose a car that doesn’t scream unreliable, such as a Hummer, and old Honda Civic, or any dirty, old vehicle with offensive stickers on it. Then, you want to look closer at subtle nuances, such as the type of driver that your car is associated with. For example, arriving at an investor’s meeting in a luxury black sedan instantly makes you appear professional and successful. You should also keep in mind that modern consumers take eco-friendliness very seriously and showing up in a car that’s notorious for guzzling gas, such as a Rolls Royce, can affect your reputation. If your company prides itself on sustainability, or you’re looking to make your company greener, then you should definitely consider a hybrid or electric vehicle as part of this strategy. Do you have a tech company? If so, then you should consider a vehicle with modern infotainment systems and other tech features.
The color you choose for your car is very important. In general, business cars should come in neutral colors because they seem more professional and trustworthy, but that doesn’t mean there isn’t room for creativity. If it makes sense for your brand identity, and your company is known for innovating and thinking outside the box, brighter colors could work too.
What car is your competition using?
Although copying your competitors isn’t a good idea, that doesn’t mean you shouldn’t try to learn and take inspiration from them. Looking at what cars the competition drives will not only give you a general idea of what works for your field, but also of what their financial capabilities are.
How to brand a company vehicle
Branding your company vehicle is a great way to boost visibility. Even if they don’t interact with you directly, people will see your logo and company colors in traffic and grow familiar with them. It’s one of the basic principles of brand marketing. Next time when they need a service that you offer, they’ll remember you and they’ll be more likely to get in touch simply because familiarity inspires trust. When branding your company vehicle, make sure you use only high-quality graphics and photos that clearly represent your products and services. And, as tempting as it might be to slam all the stickers on the car, try to keep it simple. While in traffic, people only have a few seconds to spot your company name, services, and website, so try not to use too many distracting elements.
Once you decide on the right type of car for your business, take the time to talk to your accountant about its estimated costs. Apart from the money you pay upfront, you also need to keep in mind things such as insurance, gas money maintenance, and taxes. If things don’t add up and you can’t afford company cars for your employees, giving them an allowance for gas or car rental can be a good alternative.