Posted by on Aug 6, 2017 in Business | 0 questions


There are many reasons why businesses provide their employees with company cars. They can be used as an incentive for hard-working employees, or they may be a necessity if driving is a key part of the job role. Are company cars right for your business? We will look at the pros and cons to help you make an informed decision.


Flexibility for the employee

There may be staff members who don’t have a vehicle of their own, or they may need to share their car with other members of the family. Having a company car will give them more flexibility, and will give them a second car to use while away from work.

Encourages punctuality

Should your employer live a fair distance away from the workplace, there may be issues with punctuality, especially if they rely on public transport. Having a company car should ensure they get to work on time, increasing productivity, and reducing stress for both the employer and employee.

Access to meetings

When you need to get around town for business meetings, having an extra car is useful if your own car fails. The car can be shared by you and your employees, so you all have access to the car to make those important meetings and business deals. You will be able to find new avenues of work when you can get around easier, giving you all the chance to get out of the office.


The environment

Having an extra car on the road is also a problem for the carbon footprint. Many business owners are trying to implement an eco-friendly workplace, so having another car leaking poisonous fumes is counterproductive.

Added costs

The car will need to be insured and taxed, and that can be an expense you can do without. There will also be the cost of fuel when your employee uses the car for work. Then there is the added expense of keeping the car maintained on a regular basis to protect your employee.Should there be an accident, there may be legal issues. While your employee can claim auto accident workers compensation if they weren’t at fault, you may need to prove that the car was roadworthy to begin with.

Unnecessary expenses

For starters, do you need to provide your staff with a company car? If they can use their own vehicles, there is little point in your business paying out the money to give them another one. Alternatively, the public transport system may offer a viable way of getting to and from work, so giving your staff a company car may be pointless.

Cars that spend a lot of time on the road will also have to be replaced eventually, bringing another additional expense you could do without.

The Bottom Line

There are situations where a company car can benefit both your employees and your business. As an added perk, a car can be a great incentive. However, there will be an extra burden on your finances. Weigh up the pros and cons, and decide for yourself.