Easy Ways to Save on Ownership Costs of Your Company Car
Company cars offer tax breaks for employers. Plus, they help employees get to work more easily because they benefit from reliable sources of transportation whether your company owns a car or an employee does. There are several things you can do to slash ownership costs for the respective party.
Take the Car for Scheduled Maintenance
If you check the owner’s manual for your company car, it’ll spell out specifics about when you should take the car for maintenance checkups. You might prefer to skip those, especially if the car seems to be functioning well. However, it’s smarter to make sure the car gets regular professional assessments. Then, it’s more likely you’ll be made aware of problems that could become costly if not fixed promptly.
Coach People About Good Driving Habits
In some cases, the people driving your company cars may not have received any sort of drivers’ education for decades. Many individuals are under the impression that they are responsible, safe drivers, but are actually engaging in habits that could increase the cost of ownership for a company car and shorten its lifespan.
Some of them may not have even been covered in educational classes that people took years ago. For example, running a car until it’s almost out of gas causes the vehicle to use fuel that’s at the very bottom of the tank and may contain sediment. It’s possible for that junk to get into the car’s fuel line and cause major problems.
Before allowing a person to drive a company car, you may want to take them out on the road, watch what they do, and provide feedback when necessary. It’s also a good idea to have a bulleted list of good driving habits displayed prominently inside the car. When people have visual reminders not to accelerate too fast, slam on the brakes, or take the corners too sharply, they may be less likely to do those things while behind the wheel.
Have a Standard Procedure for Reporting Problems
Maybe a person was driving a company car and noticed the car started pulling to one side when the brakes were applied or heard a strange noise after reaching a certain speed. These kinds of symptoms could be telltale signs of larger problems, which is why it’s not a good idea for people to just assume that the issues will go away on their own and do not require further evaluation.
If your company has a uniform and well-publicized procedure in place that people can use to report suspicious car problems, it’ll be much easier for the responsible department or individual at the workplace to schedule appointments with a mechanic to determine what’s going on.
This tip is similar to the one about keeping up with maintenance. Although you may not be looking forward to potentially having to pay more than expected to keep company cars running well, this approach is better than the alternative of potentially having to get rid of vehicles prematurely because they’ve developed such severe problems.
Practice Comparison Shopping When Getting Insurance Coverage
Car insurance is mandatory in most states and if you don’t have it, you may have to pay a hefty fine and deal with how your company’s reputation got damaged as a result of the lack of insurance. If you’re serious about saving as much money as possible when buying insurance, make sure to use a website that allows you to do comparison shopping and study what’s offered from different providers.
By using a website such as carinsurancecheap.net, you can easily see what’s available and request quotes based on your circumstances. The information you gather could make it much easier for your business to budget for the overall cost of company cars. Keep in mind, the associated expenses are not just related to purchasing the vehicle, but the fuel that goes into it, the upkeep, and yes, the insurance coverage.
Shopping for car insurance online is also advantageous if you are one of the main people running a small or recently launched business and find yourself having to handle many duties. You may not have time to look for car insurance at work but can easily get informed from home.
Hopefully, it’s now clear there are several things you can do to reduce ownership costs for company cars. Start putting the tips above into practice for noticeable results.