Having a company car is a desirable job perk for many people, shown by the high numbers of employees that report using one each year. According to the latest available government data, 870,000 employees used a company car in the tax year 2018-2019.
Company cars are a win for employers as well as employees. They let companies improve the value of their pay packages with the help of lucrative company car state subsidies, while workers get all the benefits of a car without any financial ties or unexpected costs.
However, getting the most out of a company car boils down to which one you pick. Keep reading for three questions that will help you select the right company car.
- Will you need it long term?
If you’re only going to need the car over a relatively short period, then it might make more sense for your company to lease a car. That way you can avoid the hassle of selling it when you no longer need it.
On the other hand, if you’ll need the car over a long period of time then it would make more sense to buy it outright. This doesn’t need to be overly expensive for the company. There are plenty of less-expensive options that would give you a great car, like buying a used Mercedes.
- What types of journeys will it be used for?
Whether your work has you driving around the city or across the country, the kind of journeys that you make will help determine what type of model you should choose.
For short inner-city driving, a small hybrid might suit you best. On the other hand, if you travel long distances on the motorway then you’ll need a vehicle with more substantial power.
Similarly, the purpose of your journeys will make a difference. A car that’s suitable for making a good impression with potential clients will look very different from one that will help you transport dirty equipment from inaccessible areas.
- How often will you drive it?
If you expect your employees to be driving often, you’ll want to ensure that the interior of the car is comfortable. Additionally, it should handle well. Before committing to a model, be sure to test drive a selection and compare how comfortable the experience is for each.
The frequency with which you drive will also shape what kind of engine and fuel you should choose. Diesel engines are typically more fuel-efficient than petrol, especially for longer or higher speed journeys. On the other hand, a hybrid engine would be more suitable for start-and-stop city driving.
A company car is a valuable benefit. In order to get the most out of it, make sure that you consider these questions so that you choose the model that’s best suited to your needs.