Should Your Small Business Get a Company Car or Not?

luxury car

Image Source

Running a small business can be overwhelming. Chances are you’re relatively new to the field and you’re taking on all sorts of responsibilities, and looking into all sorts of areas of business development, that you may not have all too much experience in. But don’t worry! There’s so much advice out there that no matter what business plans you may be considering making, it can be hard to go all too wrong sometimes. Now, there are certain investments that are clearly good for a company’s development and progression – market research, marketing, investments in product development, and more. But other investments may fall into more of a grey area, proving great for some companies, while proving a bit of a waste of money for others. Company cars tend to fall into this category. Some businesses use them relentlessly, getting all sorts of use out of them. Some companies invest in them, only to find that they are left in a parking space and rarely touched. So, is a company car a good investment for your business? Here’s some information that should help!

What Will You Use the Vehicle For?

The first question you need to ask yourself is what will you use your company car for? Company cars can have some truly legitimate and beneficial uses. You can use them to get to meetings in style, without exposing yourself to the elements and with lower risk of arriving late than if you were to use public transport. Some people add decals to their company car as a form of advertising, allowing you to market your business to others you pass on the road. Some will use it to carry out deliveries – for example, if you run a takeaway or a florist. However, if you simply want a company car for the sake of having a company car, and can’t really think what you’d use it for, chances are it’s not the greatest investment to make.

How Much Will the Vehicle Cost?

Next, you need to consider the cost of the vehicle. You need to make sure that the cost of the vehicle itself fits your budget. However, you also need to consider all of the additional costs of running the car for the foreseeable future. You need to consider insurance payments. You need to consider road tax. You need to consider fuel. You need to consider maintenance purchases from PEAKHD. You need to consider necessary repairs. You need to consider cleaning and valeting. Can you afford all of this reasonably? If yes, great! If not, you may need to reconsider getting a company car.

Would a Van Be Better?

You should also ask yourself whether a company van would be better. If the main purpose of your company vehicle is transporting stock, and if you only really need one driver’s seat and one passenger seat, a van could help you to achieve this more effectively.

Getting a company car is a pretty big decision. So, look through some of the above advice and make sure that it’s definitely the right decision for you and your business before diving in!