Many businesses require their employees to drive on company time, whether delivering goods, making in-person appointments or driving to and from meetings. You may have considered providing company cars to help employees do their jobs, but you’re unsure if you should take on the extra expense or rely on hired and non-owned vehicles instead.
As with everything in life, there are many pros and cons that come with owning company vehicles, no matter the type of drivers you have behind the wheel. We dive deeper into what they are to help you determine what would work best for a company like yours.
Pros of Owning a Fleet of Trucks
Ability to Provide Specialized Vehicles
Providing a specialized truck or van to employees as a resource is an appealing option, allowing companies to control liability while creating a more efficient way to transport equipment. It can also save time — so long as there is a safe place to keep company vehicles, any equipment can be left overnight without having to load and unload every day. The more specific a company’s vehicle needs, the better the case for providing a company vehicle.
Free Company Advertising
If a company’s drivers are made up of delivery, maintenance or service vehicles, then there is an immense opportunity to capitalize on branded vehicle advertising. Plus, a company’s employees are more likely to be invested in safer driving as a branded vehicle has a direct impact on the perception of a company’s brand.
Branded vehicles can amplify a company’s brand and reputation in the eyes of a customer in a positive manner as well. Arriving to conduct whatever service a driver was hired to do in a run-down vehicle may hurt a company’s image or bring about suspicion of job effectiveness, while a vehicle that’s too luxurious might call into question a company’s spending habits. If wanting to have the most control over the image company vehicles portray, the appropriate branded vehicle is the best way to do so.
Gain Easier Oversight
The safety of employees and the overall community are central concerns for nearly every company. When employees drive their own cars, managing maintenance, insurance, upkeep and other miscellaneous, company-specific safety concerns becomes exponentially more difficult.
Often, drivers feel more relaxed in their personal vehicles, leading to a higher potential of human error. A company-owned vehicle guarantees employees are current on insurance and maintenance. Additionally, companies can easily track employee driving records and habits.
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Cons of Owning a Fleet of Trucks
Initial Costs
The initial purchase of company vehicles is a significant investment, even with bulk purchasing discounts. Consider the cost to brand vehicles as well. Whether putting the logo on some or all company vehicles, the initial costs begin adding up quickly.
There’s also maintenance and asset depreciation to consider as vehicles age. How company drivers behave influences the purchasing and utilization of company vehicles, as they may or may not cost more depending on driver behavior. That’s what makes understanding who is driving on behalf of a company so integral.
Vehicle Storage
Many companies have two options: let employees take the company vehicles home between workdays or store them at work. If stored at work, companies need somewhere to put the vehicles. Realistically, storing them in public parking areas is not the best idea.
Parking company vehicles somewhere central means having access and utilizing a dedicated parking lot, security cameras, locked gate, potentially a patrol officer and other safety measures. Company vehicles remain susceptible to being stolen, so security will absolutely be a concern.
Extra Costs
If employees deliver large items, carry specialized equipment or are tasked with meeting specific needs on the road, then different types of vehicles may be needed. Companies often find themselves unexpectedly charged with paying to retrofit vehicles with the appropriate exterior and interior storage solutions.
Such efforts create extra costs and liability for businesses, especially if drivers aren’t adequately trained on how to use specialty vehicles. When vehicles get damaged in transit, companies often eat the cost and are found liable for repairs.
Other Options Beyond Fleet Vehicle Ownership: Hired and Non-Owned Auto
Looking to explore other options beyond vehicle ownership? Download our free checklist to discover what you need to keep in mind when it comes to hired and non-owned auto.
