Have you been back and forth over whether or not you should invest in a company car or vehicle for your business? It’s not surprising as there are many pros and cons to consider. For example, if employees have their own cars which they can use, do you want the added expense? Are there any tax benefits? If you do choose to go ahead, should you lease or buy? Can you afford the car insurance payments and other maintenance costs? It’s always important to weight up both sides of the argument, but don’t forget to think about the benefits a company car or cars can bring to your operation.
In the end, your final choice needs to be right for your situation, but if you are still trying to make up your mind and are struggling to see the benefits, take a look at these 4 persuasive reasons to invest in a company car.
- Advertising and brand awareness
From large vans to small run-around cars, driving a commercial vehicle around your local area can be a simple but effective way to increase brand awareness. A striking design with customised graphics, your logo, a catchy marketing slogan, and contact details is often enough to keep you in people’s minds.
Drivers and pedestrians will see your business while you’re travelling, sitting in traffic, parked at the side of the road or even on your driveway at home or work. Even if they’re not looking for your service now, if they see your car enough, they may well think of you at a later date. Advertising on billboards can be costly, but investing in a company car could have the same if not greater impact for a one-off cost.
If you are leasing a car rather than buying, a wrap which can be removed may be the best choice to ensure it can be removed at the end of the lease.
- It can be seen as an employee benefit
If the car is driven by an employee or several employees, letting them take the vehicle home at the end of the day could be seen as a perk from an employee’s perspective. It also means you’ll be getting out of hours advertising, which can only be a good thing.
- It could bring tax benefits
Although this is an area where you will need to consult a professional accountant, leasing or buying a car can often bring tax benefits to your business.
- Separate business from personal
A big reason to invest in a company car is to separate your business from your personal assets. If you are a sole trader and use your own car for business, it may be at risk if your business gets into difficulties. By purchasing a separate vehicle with the right level of commercial car insurance, you can protect your personal asset.
In many cases, if you include named drivers on the policy and allow employees to drive it, should an accident occur, the business would be liable rather than the individual. Compare commercial car insurance quotes at hippo.za to find the right deal for you.