Depending on their specific, companies can provide vehicles for their employees.

If you’re reading this blog, you probably considered the option of investing in a fleet of cars your employees can use because you heard that it could bring your business several benefits, from low-cost branding to easy access to transportation and advertising.

Giving your employees the use of a company car sounds like a great idea, but it’s more complicated than it seems because you have to consider several aspects. Before creating a fleet of vehicles, decide if company cars are the right option for your business. Maybe at the moment, a pool of employees is using their personal cars and if your business expands, you think it’ll be a good idea to offer them company cars to retain them and provide a professional image to the public. Or maybe your employees need a means of transportation to complete their tasks and meet with clients, and building a fleet feels apprehensive.

Benefits of providing company vehicles

Offering your employees the benefit of driving company vehicles provides both you and their countless benefits. Let’s have a look at the most important ones.

Branding potential

A fleet of company cars offers you brand exposure because your company’s logo will appear on the streets more often. When your employees drive branded vehicles around town, they expose the public to your brand and increase your company’s reach. Allowing them to use the cars for personal purposes can also take your company’s logo in places it otherwise won’t appear. Customizing your vehicles with your brand can captivate the public’s attention and make them curious about your business.

If your employees drive their personal cars to work, they might not want to add logos to them. However, if you offer them company vehicles, they’re already branded with your logo and represent the image you want to show your audience.

You control your brand image

These days it’s crucial to use any means to expose your brand to the public, so if you can customize vehicles with your logo, you shouldn’t miss it. Company cars enable you to control your first impression on possible clients because they appear in places where your audiences could be present. Branded cars also increase the authority of the employee behind the wheel because the public immediately associates them with your company.

It could prove detrimental for your employees to show up to appointments with clients and possible suppliers in a vehicle that doesn’t represent your business. Their personal vehicles might be too old or luxurious to associate with your brand and offer a bad image. You can control the brand image you promote if you invest in a fleet and encourage your employees to switch to company vehicles rather than driving their own cars.

Your employees benefit from guaranteed transportation

Sometimes access to transportation is an obstacle to employment. If you want to access and recruit top talent, provide them with all the necessary means to complete their work. Offering company cars eliminates the need for employees to take public transportation or spend their money purchasing or leasing a car. In some areas, public transit is non-existent or unreliable, and offering company cars to the employees living there would enable them to apply for your open positions. Families who share a single vehicle can also find company cars beneficial because the company worker will use your vehicle, making it easier for their partner to move around.

You can oversee your workforce

Your business needs to oversee your workforce’s performance and productivity because they directly impact the business’s bottom line. But it’s more challenging to oversee your employees when you have a mobile workforce. So how can you tell for sure if your workers are where they’re supposed to be during business hours? You can reduce these concerns if you install tracking devices on your company cars, so you can see where your employees are in real-time.

Another benefit your business gets when having a fleet is the inclusion of standard safety features. An employee suffering traffic accident injuries could negatively impact your company’s productivity because they’ll have to take free time to recover, and another employee will work extra hours to cover for them. The specialists from Personal Injury Claims state that when your employees drive cars with modern safety features, they’re protected in case of traffic accidents because they’re less likely to experience personal injuries in case of a vehicle collision.

Downsides of having a company fleet

As mentioned earlier, buying a fleet for your employees can come with some disadvantages, and it’s best to know them before investing. Purchasing cars for your workers isn’t as simple as visiting the local dealership and picking the vehicle you like the most. It would be best if you considered the following factors.

Large upfront expenses

Cars are expensive assets to purchase, especially as their prices continue to increase. Buying a car for your business can cost you thousands of dollars. You have to think if you’d use the capital for another investment that would benefit your business better.

Higher liability and risk

The more driver you have, the higher your liability is, and you should definitely consider this factor before providing your employees with company cars. Your business is responsible for the damages the drivers cause in case of an accident, and each employee could increase the cost of insurance premiums for your fleet.

Your employees might not feel comfortable driving company cars

Some people might not be skilled drivers or simply feel uncomfortable driving a particular model or make. Each individual picks a car for several reasons, and you should provide them with access to vehicles that match most needs. Some of your workers might even suffer from health issues that require modifications to drive a car.

Maintenance costs

Besides the amount you pay to purchase the vehicles, you also need to spend money to maintain the vehicles, and the expenses can add up if you run a large fleet. Suppose your employees drive the vehicles daily for work, requiring constant repairs and maintenance.

Purchasing a fleet for your employees comes with ups and downs, and weighing them to decide if it’s the best decision for your business is paramount.