When Should a Business Consider a Company Car?

It is a hard economic environment in which to grow a new business, but many are succeeding nonetheless. According to recent statistics, the growth rate for the UK’s effective business register expanded to 8.5%, after an eight-year average of 6.0% growth. But this growth was not guaranteed to last, and many new businesses are facing the fresh challenges posed by imminent recession.

Recessive economies may not seem like the best time to effect active investments in expansion, however, doing so can cement a business’ stature within its industry and ensure continued operation in spite of new difficulties.

While infrastructural expansion may be out of the equation, the company car continues to be an effective way to attract employees and benefit from flexibility. Government statistics indicate that company car registrations are on the decline, though; with this in mind, are company cars a wise decision? And when might be a good time to consider obtaining one?

The Rise of Remote Work

Though figures indicate a decline in company car ownership, the changing shape of employment could in fact be the perfect environment in which to invest in a company car or fleet. Since the coronavirus pandemic demonstrated the practical utility of remote working arrangements, more people are content with working from home as part of a new agreement with their employers – though, most commonly, as part of a hybrid working agreement.

With less people travelling to and from work, this change might be one of the key elements in the reduction of company car registration. However, for staff that need to be in the office some days of the week, and for whom seasonal public transport passes are too expensive, a company car could be a useful perk to enable travel.

Business Travel

Of course, one of the leading factors in considering a company car scheme is travel, over staff perks and benefits. Growth-forward businesses forging meaningful relationships with new potential clients or partners need to be able to travel easily and without potential for delay. On-call businesses need company vehicles to attend last-minute appointments and emergency call-outs. For businesses where travel is central, company cars are essential immediately.

Choosing a Company Car

For the new business uninitiated to choosing a new company car, there are a great variety of suitable options available – depending on the specific needs of your business. As a start-up hoping to find a sure footing amongst investors and potential partners, a used BMW is an affordable entry-point to executive private travel, and the right tone to set for business meetings.

For a trade business that conducts visits to active construction or engineering sites, even as a consultant or analyst, a harder-wearing utility vehicle would be a better option. Ultimately, common sense should form a central part of any decision-making.