Businesses in many different sectors and niches use company cars to aid operations. However, not all businesses need to invest in such a cost. If you work for a company where driving regularly throughout the week is necessary, then the business may provide you with a company car. In a report from 2018-19, an estimated 870,000 company cars were on UK roads. With the average business looking to reduce their CO2 emissions, the choice of company car is becoming ever more important and hybrid or electric models are increasing in popularity.
What is a company car?
First and foremost, what is a company car? As an employee of the business, you can be provided with a company car which usually allows for both business and personal travel. The car itself is either owned or financed by the company which means any insurance, MOTs, tax and car repairs will be funded by them and not by the employee. If the employee does decide to leave the business, then they would have to give the car back. As an employee or business owner, a company car is a great option if you’re looking to cut motoring expenses in your personal life.
The benefit to employees
Not only will employees be getting the other benefits of working for the company but receiving a company car can be a great benefit to those who travel often. It offers convenience and reduces the amount of public transport needed, whilst also allowing them to work without having to worry about their own personal vehicles.
That’s not the only appealing benefit to the employees, as mentioned previously, most companies allow the car to be used for personal use as well. This increases the appeal further as it means that the employee may still have their own personal vehicle which they may only use for short leisure-based journeys, and which will also help reduce the overall depreciation or wear of their car.
One of the main benefits as an employer is that company cars can be used to attract talent. Company cars are a popular perk which can be highlighted in the job description and used to attract the right professionals to your company.
Not all businesses require a company car
Though offering a company car may be a particularly useful tool for businesses to attract and retain employees, not all businesses need to invest in them. If travelling far or often isn’t important for business operations and certain roles, then there’s no need for the added expense to reduce profits.
Though your business may not have a company car as a benefit, there are plenty of other employee rewards that companies could consider to attract talent and ensure that they create an enjoyable working environment.
