Cars are the most popular mode of transport in the UK. They’re used in almost every walk of life whether that’s for nipping to the shops or driving to work. There are currently over 41 million registered vehicles on the UK road and that’s likely to grow in the future too.
If you run a business, you may look to offer company cars to employees. This offers a wealth of benefits and makes your company are lot more attractive to employees. The most popular company car in the UK is the Nissan Qashqai but the one you offer depends on your business needs.
You may wish to learn more about company car schemes before you introduce them to your workplace and our article below has plenty of useful information to help. Continue reading to find out more.
What is a company car and how does it work?
A company car is one that’s owned by a business and given to employees to drive. They can use it for both business and personal use, and it’s a handy scheme for employees who must travel long distances to meet with clients or suppliers.
While business car schemes differ between companies, here’s how it typically would look in practice:
- Company defines who’s eligible
- Business buys a car outright or leases one
- Employer set up guidelines for employees to follow
- Tax payments are arranged before the car is in use
- Company covers maintenance and fuel costs for business use
- Car is returned to the company once the employee leaves
What are the benefits of getting business cars?
You should consider investing in company cars for your business because they offer so many benefits for you and your employees. Some of the main benefits include:
- It can enhance your brand image when visiting clients
- It can help you attract and retain the best talent by offering it as an incentive
- You can take advantage of tax benefits
- You’ll get total control over your transportation needs
- It can encourage carpooling, which will boost the eco-friendliness of your business
- It can ease the financial strain on your employees
What are the costs involved when getting company cars?
- Purchase or lease costs – Getting a car for your employees to drive is the first step.
- Maintenance and upgrades – Cars should be serviced every year to ensure everything is in working order. You may choose to upgrade features like tyres. Buying a new set of tyres can improve safety and performance for your employees.
- Insurance – Company car insurance can be more expensive due to the increased liability risks
- Tax – Both the business and employee will pay tax on the car.
How can I pick the perfect company car?
Getting the right company car can make it cheaper and safer for your business. Remember, it’s not all about how flashy the car is, so make sure it has the following features and you should pick a reliable motor for your employees to drive:
- Fuel efficiency
- Safety features
- Comfort and ergonomics
- Resale value
- Cargo space
- Technology and connectivity
