7 easy ways to save money on your company car

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Company vehicles are valuable assets that allow workers to do their jobs safely and efficiently, but their expenses can vary depending on driving habits, maintenance, and the car itself.

Here are seven simple tactics to help businesses save money on their company cars and get the most out of every mile.

1. Focus on vehicle size and lifespan

Choosing the right vehicles will save the most money in the long run. Many factors influence the value of a car, but companies should primarily focus on size and lifespan when researching.

Small sedans are often less expensive than trucks, vans and SUVs because they are lighter, have better gas mileage and require cheaper insurance. These factors have never been more important with current gasoline and vehicle prices.

However, the size of a vehicle does not always have an impact on its lifespan. Some larger cars, like the Chevrolet Suburban and Honda Odyssey, last a long time. Despite their above average size and low mileage, they would make excellent company cars, as they can reasonably last for decades.

Businesses don’t have to wait 10 years or more to replace their fleets, but cars with great longevity will save money in the long run. The cost of new vehicles increases every year, so it makes more sense financially to look for cars that don’t require frequent upgrades.

Businesses also need to consider workers. Companies that employ many parents and seniors may want to choose family-oriented SUVs. Startups with a relatively young workforce might find that sleek sedans suit them better. Maybe a mix of both vehicle types is needed. Buying a car is a balancing act that will become easier with each purchase.

2. Estimate fuel consumption

Companies also need to consider the estimated time vehicles will be on the road. This task is more important than ever due to high inflation and gas prices. Employees should keep time and mileage logs to track their fuel consumption. Their records will provide a good estimate of each car’s expense.

Companies should consider rotating vehicles among employees so they all get equal use if one eats into their budget. The model itself may also be the problem, so it may need to be swapped out to improve vehicle options.

3. Compare purchase and rental options

Businesses that require a lot of travel may find it more cost effective to lease vehicles rather than purchase them. They will face some restrictions and renewal plans, but these expenses are minimal compared to ongoing maintenance fees. Businesses need to compare buy and lease options and determine the cheapest long-term option.

They should also consider buying used cars which often cost thousands of dollars less than newer models. Cars from the late 2010s have enough modern features and capabilities anyway. Companies don’t need to spend too much on new vehicles if they don’t have to.

4. Pass the additional features

Car dealerships will try to persuade buyers to pay more for fancy car features. Businesses should ignore their sales pitch and stick to basic templates. Employees don’t need extra cup holders or auto-open trunks to do their jobs.

The same advice applies to extended warranties. Many of them offered by dealerships have poor coverage and cost much more than insurance policies from actual providers. A commercial auto insurance plan is the only protection you need.

5. Get tax relief

Businesses can get multiple tax benefits on their vehicles if they play their cards right. Electric cars for strictly professional use are eligible for tax relief. However, operations that want a considerable amount of tax relief may have limited options. They may have to sacrifice other benefits, like mileage or longevity.

6. Take the interview seriously

Regular maintenance is essential to save money on company cars. Major repairs far exceed short-term maintenance costs. These items should be at the top of a maintenance task list:

  • Get regular development: People should check the owner’s manual for the recommended tune-up time and stick to it. Regular tune-ups promote longer life and identify minor issues before they turn into more serious mechanical problems.
  • Change filters: Staff should check each car’s air filters monthly and clean or replace them if necessary. A clean filter helps maintain good engine health and good gas mileage.
  • Replace fluids: Most vehicle fluids are replaced at least once every three years. Oil, engine coolant, transmission fluid, brake fluid and clutch fluid should be checked regularly. Companies should not procrastinate if one of them needs to be replaced. They need to keep the car healthy and refresh the fluid as soon as possible.
  • Check the tires: Companies must ensure that all tires are properly inflated and have a balanced tread. Driving with under-inflated or uneven tires often results in lower gas mileage and can damage the car’s suspension system.
  • Monitor energy efficiency: Managers should closely monitor any changes in the fuel efficiency of each car. A sudden decrease could mean that something more serious is wrong with the vehicle.

Scheduling tune-ups is the responsibility of the company as the vehicle owner, but other simple maintenance tasks can be delegated to employees. They should perform filter, fluid and tire inspections and record their findings.

Tire maintenance and balancing is particularly important, as poor quality tires are a leading cause of accidents and can multiply maintenance costs in a hurry. There should be a tire change guide in every vehicle so employees can make quick repairs themselves.

seven. Promoting good transportation habits

Labor will largely determine how much money the company saves on its vehicles. That’s why it’s crucial to promote good transportation habits and discourage unnecessary driving. Managers should discuss carpooling as a transportation option to combat high gas prices and reduce fuel consumption.

Gas saving strategies are also part of the discussion. These efforts will help workers get the most out of each tank:

  • Accelerate gently. Do not press the accelerator pedal.
  • Watch the flow of traffic to anticipate slowdowns and avoid sudden stops.
  • Maintain a steady speed on highways.
  • Don’t leave the car unused for too long.
  • Stay within the speed limit. Driving at 110 km/h consumes up to 30% more fuel than at 80 km/h.

Employees should receive frequent reminders to practice these fundamentals and ask questions about their driving habits. An educated workforce will remove much of the micromanagement from the company’s plate and allow it to focus on other ways to save money on its vehicles.

Make every car counts

Company cars are only worth it if companies acquire the right vehicles and take good care of them. These tasks are easier said than done, but organizations must be prepared for this responsibility if they are to engage their workforce. They should use these tips when accumulating their fleets to save money and make every car count.

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