Are Company Cars Always A Drain On Your Finances?

Company cars might be a necessary resource for your business, a vital tool that allows you to do the work that you do. However, when it comes to vehicles, one must always be wary of the costs that come with them. Here, we’re going to look at a few tips to help you ensure that you’re not spending more on your company vehicles than you should be.

Consider how they are to be used

You don’t want to buy a company car only to leave it lying around the garage. However, the more that it is used, the higher the costs associated, not just in terms of fuel costs, but also the maintenance and upkeep required to keep it in good condition. Define how your company car is going to be used and make sure that it’s used primarily for the work and processes that are going to return value to the business so that they’re giving a good return on your investment.

Get a better deal when buying them

If you’re looking a buying a new company car, then make sure you’re doing it with all of the care that you would when choosing a new partner for the business. Providers like ChooseMyCar, for instance, can help you find a better financing deal on vehicles that suits your business credit rating. Take a closer look at the vehicles that are known to have lower running costs, too, both in terms of a higher MPG as well as a reputation for being reliable and not needing as much maintenance over the years. 

Set policies for how they are to be used

If you want to make sure that the running costs of your vehicles do not run too high, then you need to make sure that you’re relying on trained drivers who know how to operate cars as economically and efficiently as possible. Efficient driving lessons from providers like Pass Drive can help them learn how to drive in ways that are both more fuel-efficient and also less taxing on the hardware of the vehicle, reducing the wear and tear on it. You can then reinforce their training by turning them into policies and procedures that you expect your drivers to follow on a continual basis.

Set the right routes

For the company cars that have to make regular mid-to-long distance drives, you might want to start planning those drives out in a little more detail. The route that you choose is going to affect running costs as long drives increase fuel consumption as well as wear and tear. Sites like ViaMichelin offer plenty of information, all you have to do is set the journey start and finish and it can help plan a route, even taking into account recent traffic reports.

Vehicles of any sort are always going to be a significant cost for any business. With the tips above, hopefully, you can start actively managing just how much of a drain they might be on your finances.

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