Company cars are an invaluable resource for many businesses. They can serve as team member perks or provide a means of transportation for operational purposes. However, acquiring and sustaining business vehicles is costly, mainly when working with a small budget. Ultimately, finding ways to keep these expenses to a minimum is ideal. Continue reading for advice.
The cost of electric vehicles has dropped significantly since they were introduced to the market. There are also more vehicle types to suit your budget and company needs. From compact and economy cars to SUVs and trucks, you can purchase an environmentally-friendly vehicle at a low rate.
EVs don’t require fuel, which will save you a lot of money in the long run. You can also find the best commercial electric car charging stations at an affordable price. That way, your employees can charge at the office before they hit the road. You can also generate revenue by charging non-employees to recharge their vehicles.
Gas isn’t the only thing you’ll save on by purchasing EVs for your business; their innovative designs with fewer mechanical parts also mean you’ll save on maintenance and repairs.
Fuel Credit Cards
If you opt for fuel-powered vehicles for your business, gas credit cards provide convenient ways to save. Cashback and reward offers are some of the best money-saving advantages of a fuel card. You get cash back for every transaction. You can also get exclusive offers like percentages off local gas stations.
Some fuel credit card companies have other savings programs like general maintenance and repair discounts.
Car Service Contracts
Vehicle maintenance and repairs can range from a few hundred to several thousand dollars per unit. As a small business owner, your best option is to purchase car service contracts. These are extended warranties that can provide you with free or discounted mechanic services. You can buy a service contract from the dealership or private entities to save substantial money on car upkeep.
Vehicle Monitoring Systems
Although you hope that your staff will drive responsibly and treat company cars with care, that isn’t always the case. It’s not uncommon for employees to speed, excessively brake, and drive aggressively. Some employees will even abuse their privileges by using the company vehicle for personal purposes. All of these activities result in higher costs for your business.
Auto accidents lead to higher insurance rates, speeding drains gas faster, and aggressive driving puts wear and tear on the vehicle. Vehicle monitoring devices offer a practical solution to reckless driving and high out-of-pocket expenses. Advanced technologies attach to the vehicle’s engine or dashboard and track everything from location and speed to excessive braking and acceleration.
Installing these devices on your company cars can encourage safe driving practices, reduce inappropriate employee behavior, and lower the cost of maintenance and repairs.
Choose Insurance Providers Wisely
Your company cars must be insured; however, policies for multiple vehicles are expensive. Business owners can save money on insurance by choosing wisely. Shop around for policies that provide the most coverage at the lowest rate. You should also consider purchasing from insurance companies that offer automatic discounts to businesses.
Of course, that’s not the only way you can save on insurance for your company vehicles. You can bundle insurance policies (auto, business, and life) for additional discounts. Another suggestion is to pay the annual rate instead of monthly premiums, as most insurers will drop the price if you pay upfront. If your company cars are electric or have advanced technologies that make them safer to drive, you should point this out to the insurance rep as it could result in even more savings.
Company vehicles are a necessity for many organizations. It’s a great way to attract top talent, support team members with long commutes, and conduct everyday business. However, the expense of buying and maintaining multiple cars is high. As small business owners are often working with a limited budget, they must use economically-sound practices like those listed above to help keep costs under control.