What is a company car? Effectively, it's a vehicle that serves business purposes. You might drive it around to meet clients, it could be a car people use to get to and from work - there are many uses for a vehicle like this! Some people don't realise the importance of a company car because they see it as a non-essential luxury item. Why bother having a company car when people can just drive their own ones?
As it happens, company cars can be extremely beneficial - for both your business and employees. They are far more than a luxury item as they have numerous uses. In this guide, you'll look at the three key ways in which a company car provides benefits. While that doesn't seem like many reasons, you'll soon realise how important they are.
Enhance your business reputation
Arguably the main reason for company cars is to improve your business image & reputation. It's very easy to understand how this is the case. Imagine you run a business, but travel to clients in your current vehicle. It might be an old car that's not well-maintained - or it could have stickers on the back and kid's toys inside. All of this creates an unprofessional image that can put some clients off. It sounds rude, but people will judge you based on your vehicle.
Therefore, a company car can transform this perception. You can drive an executive vehicle that's customised with big fancy XXR 527 wheels and blackout windows. Suddenly, you've cultivated a much better image of yourself and your business. Clients see you get in and out of this car and feel impressed. You must be doing well for yourself to have such an incredible car! It's kind of like the vehicle equivalent of a posh suit - if you wear a suit to meetings, people instantly see you as a professional human being, which builds trust.
Furthermore, you extend this to your employees and business premises. Imagine you have a fleet of company cars that all look the same. Now, picture all of them parked outside your office or in a parking lot. It adds to the professional image of your business as they make the entire premises look so much more elite. Also, your employees provide a professional image when meeting clients, so it creates a snowball effect.
Overall, there's no denying that dedicated company cars will improve your reputation and enhance the public perception of your business. The easiest way to understand this is by comparing two businesses - one with company cars, the other without any. Which one are you more likely to trust?
Continuous low-cost marketing
An advantage of company cars is that you can add branding to them. A lot of businesses do this, mainly because it enhances professionalism and offers marketing opportunities. You don't have to wrap your car in a crazy design - a logo and some contact details on the side are all it takes.
Consequently, you can advertise your business whenever the cars are being used. When you drive to and from work, other drivers and pedestrians can see the logo on your car. They read your business name, and it sticks in their mind. It should also be quite clear what you do, so they might put that information away for a later date. Or, in some cases, they see the website or phone number under the logo and make a note of it. From here, they may go online or give you a call, resulting in a new customer.
It sounds far fetched, but it really isn't. There's no difference between this type of advertising and paying for a poster at a bus stop. Well, there is one significant difference - it's far cheaper to use your car! Aside from the cost of buying and running the car, you're basically advertising for free. You don't have to keep paying money to keep your advert in place, no money is spent when you generate leads - it's a low-cost way of marketing your business every single day.
Think about it, even when you go to the shops to get something for lunch, your car advertises the business in the parking lot. Of course, if you have a fleet of company vehicles, you broaden the advertising opportunities. It's one of the simplest ways to increase brand awareness without really doing anything.
An employee benefit
Finally, company cars are crucial as they provide you with an employee benefit. As a business owner, one of your top jobs is keeping your employees onside. They must be happy, or else they'll quit and move to a rival company. You can't deal with the stress and financial annoyance of high turnover rates. A business works best when it has a core team that stays together for many years.
Therefore, giving your employees a company car will be a genius idea. Basically, they get a car for free! The only catch is that it might be branded, but most people won't care. Some employees may even deem it worthwhile to sell their existing vehicle and use the company car all the time. That's great as it means more advertising for you! From their perspective, it means they basically get some extra money by selling the other car.
All in all, it's a wonderful benefit as it provides them with something highly practical. They'll appreciate it, softening their opinion of your business. This encourages people to stay with you for longer, reducing turnover rates. Also, if you need to hire new employees, the prospect of a company car can make your business a more desirable place to work. This could lead to more applications, allowing you to find the best talent!
In summary, it should be clear how advantageous company cars are for businesses of all sizes. Whether you use one company car or an entire fleet, the benefits remain the same. It's certainly something to ponder if you're looking for ways to improve your business.