Company Car - A Different Beast
Company cars are NOT employee cars - there is a difference, and that difference all comes down to individual ownership. An employee car is owned by the employee, paid for by the company in question, while a company car is owned by the company, paid for by the company, and used by the employee only for business purposes.
So - what to choose for your business. Company or employee car.
When to choose a company car
There are several important issues to consider before making this decision:
- Space - Do you actually have a place to put the number of cars you need.
- Cost - Can you afford to buy multiple company cars simultaneously and all the insurance thereof, or would making the purchases based on the flow of employees make more business sense?
- Responsibility - How much do you wish to be reliable for every car used in your mobile business?
You should only choose to use the company car option when you have ample space to keep the automobiles when not in use, when you can afford the cost of multiple automobiles and full coverage for each, and when you are ready to assume responsibility for the actions of anyone getting behind the wheel. The benefit? A company car will always be property of the company. They are assets, business assets, enjoying all the perks of a business asset.
