There are a lot of perks that can be given to staff from their employer, and if you are the sort of business that values its people, perks are what counts. There are cash bonuses, extra healthcare, additional days off, and dress-down Friday perks that people already enjoy, but what about a company car?

For years, a car has been seen as a huge bonus and usually one that the mentors and managers get to enjoy rather than the staff at a lower level. Company cars allow for increased mobility, making it easier for your team to access the workplace and offer your employees serious value. The thing is, it might not be a good thing for your business overall. It’s essential to look at the bigger picture; the cost isn’t just the car itself. So, let’s look at the pros and cons of offering company cars to your employees.

Pros

• Firstly, employees will find a lot of value in using a company car. They’ll be able to be more flexible with their time and not spend hours each day in the morning and evening commutes. This can make a big difference in their motivation to be at work in the first place.
• Next, you can salary sacrifice your company cars. This is an arrangement that reduces the NIC obligations of your staff and prevents them from paying over the odds in income tax. There will still be additional costs for them, but not as much as before.
• The commute and public transport will no longer be an issue for your staff. With a company car, it won’t matter if your office is in an out of the way location. They’ll be able to get to you no matter what!

Cons

• The first disadvantage of a company car is that employees may face extra taxes and charges. The fees are paid based on the value of the vehicle, and if you’ve chosen to go for a sleek model, the taxes will be higher. If they already have their own cars, it’s not an economical choice.
• You are going to have to spend out on repairs. Sure, you can get parts and things you need cheaper from Automotive Stuff, but you’ll still have to factor this in. You can’t expect your staff to maintain the car you’re loaning.
• Cars will need maintenance; there’s no secret about that. They have to be serviced and repaired regularly to stay running and on the road. Cars aren’t just a one-off cost; they can cost you more over time.

Should You Do It?

This is going to be individual to your business, but if you have the budget and you have the chance, offering company cars to your business is an excellent way to show your staff that they matter. Whether it’s a good idea for your business really depends on the type of company that you have. The investment could be an excellent idea for your company, so why not look into it today?