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Company Cars | Everything You Need to Know

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Company Cars | Everything You Need to Know

The employment of company cars can be a great move for a small to medium business whose business mileage is a growing cost, and for companies whose staff are on the road regularly. If your business relies heavily on a field sales team, purchasing company cars may be the most cost-effective and convenient long term solution.

Before you buy, here are some things you must consider within your budget.

Should You Purchase or Lease?

When it comes to acquiring motor vehicles for your business, there are several ways of doing so. You can make a purchase outright, enter into a hire purchase contract, or lease your vehicles. Depending on your long term needs and current cash flow, one of these options will be best suited to you. Most businesses are unable to buy outright and will choose hire purchase or lease; hire purchase will grant you complete ownership at the end the repayment period, whilst leasing will give you hired use of the vehicle until the end of the contract and will cover all repairs and maintenance costs.

Choose the Cheapest Fuelling Options

Once you have your company vehicles, it’s important to ensure that your employees are re-filling in the most economically sound ways. The best way to control this process is to provide fuel cards. Fuel cards are available with various fuel companies and will give you reduced business rates every time you fill up. Business fuel accounts will also give you clear visibility of your fleet and will help you track your vehicles and their fuel usage.

Consider Vehicle Tracking Devices

Pool cars or company cars are not at their most efficient if there is no way of tracking them. To ensure you avoid fuel discrepancies, track your vehicles. Doing this not only helps you inculcate accountability with you field team but it also encourages drivers to be more efficient with their driving routes. To maximise the effectiveness of in-car tracking devices, all employees should be provided with the right training.

Motor Fleet Insurance

Insurance cover is paramount for every area of your business. From building and contents to catastrophic loss, from liability to business interruption insurance, protecting your company should be a priority at all times. And it’s no different for your motor fleet; protect your company assets by getting a good insurance policy in place. Underwriting experts such as Catlin Group can provide companies in the UK with tailored cover – contact Caitlin Group for further information on motor fleet insurance.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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