Providing A Company Car – What You Should Know

Being a great boss often means that you should invest in your staff. This can be more or less intensive depending on the strength and level of the staff in question. One of these more luxurious benefits you might allow your higher-ups to receive is a company car. This means that you provide them with the automotive and they are responsible for its good maintenance and fuel usage. This company car is a symbol of confidence, of the willingness to invest in their travel responsibilities, and the general willingness to show them they are a valued member.

Of course, we’re not here to help you out with buying strategies and what models of car to go for. Anything you deem functional and within budget should be down to your discretion. We can however help you with a few small considerations that allow you to ensure everything here is set up to the best of your ability:

Fill Contracts

The contractual obligation of an employee receiving a free car should be laid out. The extent to which you’re willing to provide ownership, the length of the company usage, what to do in the event of a necessary service or repair, and how to respond and report damages should all be taken into account before you even gift the vehicle. If you’re willing to afford a certain allowance in fuelling costs, you must embed that fact into the overall necessity of the contract.

You must also provide a method for them to notify you of any issues, and what your investment limit is with that. A small crack in the windshield might be worth you investing in to keep up morale for example, but replacement tyres and simple service work might be the responsibility of the employee in question. When you have this laid out perfectly, there will be no room for error or strange legal proceeding in the event of an odd circumstance. Have your lawyer pour through this contract many times.

Transport

Often, safe transport of the vehicle from the lot to your business or to the home of the individual can be the most pressing matter. After investing in the asset for your employee, you’ll most likely need to protect it. If you can, ensure that you use a service such as Shiply to get their vehicle where it needs to be safely. This is also important when scheduling vehicle repairs, allowing for prompt and safe travel to regular maintenance.

Insurance

It’s best to go for the most comprehensive insurance package you can. Protecting your asset is important, even if you trust your staff member. Leaving nothing to chance works well here. For example, if you notice that your staff member lives on steep or dangerous roads, or that they have points on their licence, it might be that you have them contribute to the insurance plan or that you make it more stringent.

With these tips, providing the privilege of a company car will be met with gratitude, safety, and peace of mind.

Image: Mike’s photos

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