Taking your business on the road: The advantages of a company fleet
Over eight million company cars hit the road every day in the US. While automobile sales slowed down in 2020 due to COVID-19, they picked back up in 2021, including the sales of company vehicles. In the first half of 2021, fleet car sales increased by 63%.
Many companies choose to provide fleet vehicles for their employees. Some businesses depend on vehicles for shipping, local delivery, or transporting clients. Others provide these vehicles for their employees’ daily commutes and business-related trips.
Purchasing a company vehicle can be a complicated process. You have to pick the right kind of automobile for your business, decide whether to lease or purchase your fleet and keep up with regularly scheduled maintenance. In the end, however, using company vehicles provides several advantages for many companies.
You’ll present a more professional appearance
One significant advantage of using company vehicles is that it gives a company the chance to present a highly professional appearance. A uniform fleet of vehicles sporting your company’s branding looks way more impressive than a rag-tag, mismatched group of employee-owned autos.
A business can also ensure that these vehicles are kept sparkling clean, adding to the appealing appearance of a company fleet.
Another big benefit of utilizing a company fleet is the opportunity to brand your vehicles. Vehicles sporting company logos and car wraps provide an excellent form of advertisement. According to surveys, branded vehicles can make 30,000 to 70,000 impressions a day, increase brand recognition by as much as 15 times, and have more effective reach than either television or radio ads.
You’ll know the costs upfront
Many companies reimburse their employees for fuel usage and vehicle wear and tear. This practice is effective at increasing employee satisfaction and retention, but it also incurs unpredictable costs. Since employees may drive many different types of cars, it is almost impossible to predict the exact prices, especially fuel, which is usually the largest travel-related expenditure.
Not so with a vehicle fleet. A company-managed fleet makes it easy for a business to plan out the exact costs of fuel and maintenance. Because vehicles will achieve uniform gas mileage, a company can budget the cost of fuel from the outset.
Utilizing a company fleet also makes it possible to choose the right kind of vehicle for your business’s needs. For instance, choosing a compact SUV provides significantly better gas mileage than a full-sized SUV while providing more room and comfort for your employee drivers. These vehicles are also safer than many sedans and better for the environment.
You’ll keep your team safe
One of the most significant benefits of buying or leasing a company fleet is the opportunity to ensure the safety of your employees. With a company vehicle, a business can set strict guidelines for driving practices. What’s more, companies can use geo-tracking and other technology to ensure that employees follow these guidelines, such as driving at safe speeds and using the safest routes.
Choosing to employ a vehicle fleet is a crucial decision to be made by each company. Not every business will find this investment to be suitable. However, for many companies, the advantages provided by company cars are clear.
Photo by Andrew Stickelman