When deciding to purchase a fleet of vehicles for your business, there are many factors to consider. Cost is probably the largest factor. Here are some benefits of having your own fleet.
Having your name on the side of a vehicle gives you the opportunity for free advertising. It allows you to get your name out there, and gain some recognition in the marketplace. Even if your fleet isn’t on the road, it is still acting as a billboard while it is parked. Companies that provide vehicles tend to be thought of more highly than other companies. You are giving the public the perception that you are willing to invest in your company. Having a well maintained company car roll up to an important meeting shows your client that you care about your business. It increases your professional image in the marketplace to have your own fleet.
The benefit of having a small fleet is that you can write off some of the costs on your taxes. There is more tax incentive to purchase larger vehicles for your fleet. This generally means trucks that are larger than the ones readily available to consumers. In some cases, you can write off the total purchase price. Operating costs are also tax deductible. This is a broader category involving mileage accrued, maintenance required, and fuel consumed. It is important to keep good records when maintaining your fleet. This would include maintaining wheels and bearings on larger fleet vehicles, since it is an important safety requirement.
Improved Employee Morale
Employees that have the option of having a company vehicle may feel more respected. It also allows them to travel to other places without having to worry about the wear and tear on their vehicle. For larger fleet vehicles, it makes transporting materials easier on your employees. It makes them look more professional when they show up to job site. It is an added reward to your employees to be able to drive a company vehicle. It may even be considered as part of their benefit package. Employees that feel like you care about them are more likely to stay with your company. Happy employees have better morale and will work harder for you.
Reduced Salary Expectations
In some cases, you may be able to offer a lower salary in exchange for the added perk of having a company vehicle. You may only have a few company cars, but this would allow for more competition among your employees to be able to have one. It could be a good opportunity to promote someone without having to dramatically increase their salary expectations. Sell it as a company benefit so that it doesn’t seem like you are trying to take advantage of them. Often times, employees will stay with a company for the benefits over the money. A good benefit package can look more attractive to employees than having a higher salary.
Having a small fleet is a huge investment for your business. Consider these reasons when weighing the benefits a having your own fleet.