A business vehicle can be a fantastic way to boost the reach of your venture and inspire new growth. Microsoft are among those who tout the benefits of such vehicles, noting their positive impact in three fields: providing a greater reach to customers, providing potential branding opportunities, and acting as a way to write off tax while getting benefits for your company. There are, however, downsides to obtaining a company vehicle. Looking in-depth at the pros and cons of obtaining one is a good start in making this landmark decision.
Assessing your needs
Taking a look at how your business stands to benefit from a vehicle will also help you to confirm what type of vehicle you need. This can be simple enough at first – is your business going to benefit from a small vehicle for A to B, or might you benefit from something larger? Looking for the right vehicle through car guides can help you to pick out the right type of vehicle by highlighting their key features, which can also help you if you need to go up from a smaller vehicle to a large car or perhaps a truck. Something important to note on this subject is highlighted by Chron. Larger vehicles, such as a dump trucks or similar equipment, cannot be written off on tax.
Making the most
This tax exemption and write off should underline your approach to using a company vehicle. Ensuring you receive your fair rate on tax deductions is the first step, but you should also look at how the vehicle can be used to benefit your business. A major use is through advertising. A study in the UK, reported by The Telegraph, concluded that vehicles in a busy city such as London can be seen by up to 3,000 people per hour. In an even heavier car-using country like the USA, that’s amplified many times. Your car can, with simple livery, be an ever-moving advert, and that’s another way to gain value.
Finally, using employees to drive the company vehicle can provide a wide range of benefits. It eliminates costs for the employee, providing a perk; it places greater control of their workflow and commute, giving you a greater level of assurance; and it improves employee engagement with the business. While this raises further risks in terms of insurance and suitability of the employee to use the vehicle, it is nevertheless an opportunity. This is another way to get the most out of any particular vehicle purchase or hire for your small business, which is always important given the small business focus on frugality and making every cent count.
If you find yourself ticking a lot of boxes, then perhaps it’s time to invest. A vehicle of any size can give your business a greater level of flexibility and a boost in key areas like branding and employee engagement. Just ensure that you know it’s a sound purchase before you make the change.