subject: Advantages Of A Company Car [print this page] A company car offers some distinct advantages to both the employer and the employee. The use of a leased company car allows employers to get cars at a reduced rate compared to buying these cars. There are four distinct advantages for employers to give their employees company car.
1.It allows employers to give fringe benefits at lower costs to the employees. This means that companies are able to give their employee a car which they can also use for their personal purposes.
2.By leasing these cars employers are able to give employees a chance to drive vehicles that they normally wont be able to afford. This can act as a benefit for the employee and the company has a motivating tool for their employees.
3.The use of a car lease on a company car gives employees tax benefits. This helps the organization and the employees get tax cuts.
4.By leasing a company car, companies are able to maintain a minimum standard for the cars that their employees drive. This is good for companies who need to maintain a certain image.
50% of all car leasing is done by companies. There is a reason for this huge margin as companies are able to save money and use the latest cars.
Companies are usually not concerned about the resale of the car or holding equity in the car. Once they are done using it, they would like to change it without much hassle. Leasing a company car allows this. By leasing a car a company has to merely switch cars at the end of the lease period. This allows companies to always give their employees the latest cars. This looks good for the companys image as well and motivates their employees to work harder to get a company car.
The tax advantages of having a leased car for a business motivate a lot of industries to get leased cars. Since almost all expenses related to leasing a car are tax deductible, it helps companies save money while getting a car for their fleet. This is a major factor all over the world for companies to lease cars. The use of a company vehicle enables people to maintain a certain image. Often cities lease police cars and also lease cars for their employees. The use of a company car is a fringe benefit for a lot of police counties.
Leasing company cars allows companies to give their employees a chance to drive superior cars which they normally would not be able to afford. The lower cost of leasing vehicles in comparison to purchasing them works great for companies. Companies which need their employees to travel as a part of their daily routine can benefit from getting a leased vehicle. Some commercial leases are also available for companies that need a fleet service. Although corporate car leasing has come under criticism especially in the public sector, they are still widely used as they allow for companies to reward their employees.
