When you own your own company, there are a lot of things to manage, think about, organize, and pay for. Although there is the benefit of being able to pay for things such as company cars, you still have other factors to worry about. Things like gas milage, cargo room, towing ability, insurance, financing, maintenance… everything you worry about with your personal car but now it’s a part of your livelihood and income. Here are some things to keep in mind when buying a company car.
What will you primarily use it for?
Depending on what kind of company you own, you will have an array of choices. Construction companies will need a truck capable of taking large loads from Home Depot or other stores. Smaller companies, like a consulting firm could probably get away with a small hybrid. This will also save money.
How will you pay for it?
If you are lucky, you can pay for the truck in cash, but most construction quality trucks cost upwards of eighty-thousand dollars. If you, like most people don’t have that kind of cash to lay down, you can find financing. There are even private financing companies outside of dealerships that you can work with.
How many people will be driving it?
Since it is a company vehicle, you will have to provide certain details and information about the car/truck and any drivers. For cars, it is more simple because none of them require a special license. For bigger and heavier trucks, only drivers with a certain classification can drive.
Who/where can you get the best insurance coverage?
Insurance on company vehicles is not much different than a private car except you may need to clear all drivers with the company first. Unfortunately, that means if you have one employee with a bad driving record, either they cannot drive or you need to find a different company; instead of insuring one driver, all drivers get grouped together essentially.
What kind of process does it take to legally register it as a company vehicle?
In many cases, there is no extra steps to register it as a company vehicle. Once the company is big enough to have multiple vehicles, usually trucks, then you will probably have to register them as a fleet and start numbering each one. It isn’t incredibly difficult and helps to keep records organized.
Taking care of the company car.
Now that everything is in order, there are likely going to be a lot of people driving the new company car, but not doing the maintenance. As the company owner it is your responsibility to be sure the fluids are always clean and full, the tires are safe, brakes are working without problem, etc. Pay attention when you are driving for any strange noises or smells, and get the entire car inspected regularly. Unfortunately, employees don’t always treat work property the way they should. If you put in the due diligence, the car can still serve its purpose for many years to come.