How the right company car policy can save your business money
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Ostentatious displays of luxury are no longer acceptable business practices. Nowadays, businesses can save money by optimizing their company cars in ways that are in line with the needs of the organization.
Here are five easy suggestions to improve your company vehicle policy:
1. Opt for the base model
Rather than spending extra money on a range of unnecessary features, prioritize spending on finding the best base model available. Many higher-end trims don’t actually amount to much when they’re resold and often become standard features within a couple of years.
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2. Replace cars after a maximum of 3 years
Although the vehicles will be more than adequate after only three years, it’s recommended to replace cars after this period. Exchanging leases after three years guarantees that you constantly have a flexible selection of vehicles that can meet the changing demands of your business. Additionally, later models bring newer safety features with better fuel economy, saving money in the long term.
3. Don’t cheap out on older cars
Although a certain deal may appear to be a complete steal, more often than not you’ll find that buying older, cheaper models will cost you more in the long run. Having a newer car will also reflect positively on your business. For instance, the Toyota Prius and Chevrolet Volt are incredibly fuel-efficient and don’t have nearly as negative an environmental impact as non-hybrid vehicles. Newer models are also much less likely to depreciate in value as quickly as older, dated vehicles.
4. Maximize the use of your company car
Some companies tend to overlook their vehicles’ capabilities. Try to encourage employees to make the most of their cars, whether this means carpooling or loading more cargo to make use of the space. Businesses tend to use cars that are larger than necessary to complete a job when opting for a smaller vehicle can help reduce costs.
5. Think about your employees
To make the best decision possible when choosing the perfect company car, it’s vital to balance the needs of your employees with financial and environmental concerns. While your corporate vehicle policy should establish clear rules, your employees should still have the freedom to choose the car that will work best for them within reason. The happier the employee, the more likely they are to work efficiently.