Why investing in Company Cars is a Smart Investment for Business

Why investing in Company Cars is a Smart Investment for Business

More and more companies are beginning to provide their employees, especially starting with middle management, with company cars or at least a car allowance.  Having a company car system is a smart investment for businesses because of the advantages it provides.  People do not realize the hidden potential of company cars and the advantages, both financial and business enhancement, associated with it.  Your employees have to arrive at work via some type of transportation, and a company vehicle is the ideal vessel for employee transportation.

People tend to think of company cars as a perk only the CEO and other chief officers receive, but the face of company vehicles is steadily changing.  Today, businesses are investing in vehicles other than luxury sedans.  For example, construction companies are purchasing pickup trucks for their employees, and many businesses are starting to purchase SUVs as their standard company vehicle.  A number of companies have started to focus on energy-efficient vehicles instead of a standard sedan.  One of the advantages of having company vehicles is that businesses can choose specific vehicles that will enhance their business operations.

Tax Write-off

Few businesses are aware of the advantage of using their company vehicles as a tax write-off.  Of course, limits and caps apply, but using a tax write-off has the potential to save your business money.  Even if you lease or purchase the vehicles, both lease payments and loan payments are tax deductible.  Upkeep and mileage on the vehicle during the current year will count as a business expense on the tax report, but the actual vehicle would be depreciated over an IRS depreciation table (MACRS) so the entire price of the vehicle cannot be expensed in the year of purchase.  Specifications on tax reports vary from industry to industry and depending on the type of vehicle so it is best to consult with an accountant on tax information regarding your particular business.


By having a company car, you are giving your company a unique marketing opportunity.  Many companies have their vehicles wrapped with company logos and contact information as a way to continually advertise about your company.  Since employees drive these vehicles throughout your city, the exposure is a clever way to provide your employees with transportation and give your business valuable exposure.  If you are looking for a more subdued look, consider having a decal with your company’s contact information placed on the back window.  Company cars will be driven past large amounts of daily traffic, and the potential marketing opportunities are unlimited.  By marketing your business, you will expose your business to a larger audience which should lead to an increase in sales.

Employee Wellness

Providing your employees with company cars will assist in improving your employee wellness.  When your employees have access to company cars, they will have reliable transportation to travel to and from work.  Reliable transportation will help your employees arrive at work on time because they will not have to worry about their vehicle breaking down.  Employees will also value you as an employer because of the investment you are making in their lives.  Your employees will view a company vehicle system as an advantage of working for your company which would lower employee turnover rates.  Having a company car system in place will be viewed as a perk and incentive for future employees, and it might be a deciding factor to join your business.

Company Image

By having company vehicles, your business will be seen as affluent and prosperous because you are able to provide company vehicles for your employees.  Investing in particular types of company cars can also influence your company’s image.  For example, driving a hybrid sedan will show that your company believes in helping the environment, and investing in luxury SUVs show that your business is focused on prestige and public appearance.  A landscaping company can show their professionalism by having a vehicle that looks reputable but is also able to carry their supplies.  People judge businesses based off of appearance, and having a company vehicle is the ideal way to showcase your company’s image.

Alternative Solution

If your business is strongly opposed to the idea of having a company vehicle system, you should consider offering a car allowance for your employees.  A car allowance will still provide financial incentives for your business, and your employees will alsoview this as an advantage for working for you.  Many employees use their allowance to upgrade the vehicle they would have bought so this will still improve your company’s image by filling your parking lot with newer, high-status vehicles.


For your business, having a company vehicle system in place could have a great impact on your business’ exposure, image, and finances.  Investing in company cars will be a positive perk for your employees, and it will offer financial incentives for your business too.  You will enhance your company through marketing and employee wellness programs, and many people will view your company as affluent because of having the luxury of company vehicles.  Allowing your employees to drive company vehicles is a win-win for everyone.

Author Bio:

Valerie handles media relations for Caliber Collision, and in her spare time, she enjoys swimming, traveling, baking, and playing with her puppy, Emma.  Some of her favorites include Taylor Swift, Coke Zero, and The Good Wife, and she enjoys living life to the fullest but also making time to enjoy the small moments.

Published by Sandy


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