Company Cars: What to Consider


Some companies offer cars to all or certain employees. This has plenty of perks for both the company and the employee. For instance, the company can write it off while the employee doesn’t have to put miles on his or her own car. However, while company cars sound like a good thing, there are also risk factors. Here are a few things to consider before offering up company cars.

Type of Car

If you are going to offer a car, you need to decide what type is best. Will your employees work well with a sedan or compact car, or do they need a truck or SUV to get around town? Figuring out the right type can help keep you from having to re-buy cars every year or so or to completely change your fleet to something new.

There’s also the possibility that you’ll need more than one type of car. For instance, you may put your sales people in a sedan while your operations people are in pickup trucks. Once again, be sure to consider all the factors before you start to pick which cars make the most sense.


If you are going to allow employees to drive cars, you should consider branding it. This can be done through stickers or magnets, or you can even spend the money to have it permanently painted onto the car. By doing this, you are allowing the cars to be moving billboards for your company. Besides a logo, make sure that you are including some type of contact information too so people know where to find you.

Another good idea would be to pack this car with some marketing handouts. This way, if your employee is stopped at a gas station and someone inquires about your company, the employee can provide them with the right information that can help you land a sale.


How will you want your company car to be used? For instance, will certain people have their own car, or will you have a fleet of cars that can be used by employees for certain things? If you opt for the latter, you will need to have a place to keep these cars when not in use, such as a garage or parking lot. You will also need to have a secure place to keep the keys, such as a Valet Box or another form of valet parking equipment. This way, individuals can access the cars and the keys in a secure way.

Background Checks

Before you hand keys over to employees, you’ll want to do background checks on driving records. After all, you don’t want anyone handling your vehicles that has a poor driving record, because this puts your company car at risk. Make sure that everyone has a clean driving record and is a safe driver before you give them access to a car.


Besides having a car, what other perks will you allow? For instance, will you give them a company credit card to pay for gas, or is this their own expense? Will you partner with a company for service and maintenance? Will you supply license plate stickers, if necessary? There are plenty of things to think about, so make sure you have a plan in place before you opt to go live with the idea.


If you will allow employees to drive company cars, you need to make sure you have the right insurance. Contact your insurance provider to see what you need to do to cover your cars and your employees, and then follow their suggestions based on what it is you decide to do. If you don’t have accurate coverage, you can put yourself in a very sticky situation if your employee were to crash while driving your vehicle. Instead of putting your company and your assets at risk, talk with your insurance provider right away.

Offering company cars can be a great way to give something useful to your employees and that will benefit your business. However, like every business decision, it’s something you need to really think about. Weigh all these options before making your final decision.