Now you know what company cars are, we can get onto the big question: Should you get one?
Like most questions, there are multiple different viewpoints and conclusions. While some people will tell you that company cars are worthless expense, others will swear by them and claim company cars are a great staff retention tool.
Well, I’m not here to tell you what to think.
Instead, I’ll give you a bunch of pros and cons and let you make your mind up for yourself.
Pros of a Company Car
- If the company is leasing a number of vehicles or a fleet, it gives them a lot of bargaining power.
- The company is responsible for repairs, which is good if you’re the employee.
- There are zero upfront costs for the employee.
- Often the company covers the insurance costs.
- Company cars remain a very powerful incentive.
Cons of a Company Car
- If the company has a lot of cars, they are typically the same model or make, which reduces choice for employees and can result in someone ending up with a car they dislike.
- The company is responsible for repairs, which is a pain if you’re the employer.
- You can’t always use the car for personal usage.
- If your employee leaves, you’re left with the car and have to continue paying for it.
- Company cars have lost much of their tax advantages.
- Diesel cars are more expensive after the government crackdown.