In certain sectors of activity and types of function, employees may have to make business trips or quite simply use a car to carry out their daily tasks. This is why the company vehicle exists for businesses.

In France, it is therefore possible to make a vehicle available to employees so that they can exercise their profession in the best conditions.

Company vehicle: what are we talking about?

The company vehicle, also called a service vehicle , is a car owned by the company and made available to a few employees . It is the property of the employer and must be used in a strictly professional context .

Company vehicle and company vehicle: What are the differences?

It would be easy to confuse a company car with a company car. Indeed, these two types of vehicle seem to fulfill, at first glance, the same role since they are for professional use.

However, there is a big difference: unlike the service vehicle, the company car is considered a benefit in kind . In the majority of cases, the employee can use it in the private sphere and outside work periods , weekends as days off.

The company car is therefore considered as a form of remuneration in its own right. It must therefore be mentioned as such in the employment contract .

What are the advantages of a company vehicle?

Make no mistake about it, the company vehicle offers more advantages for the employee than the employer. But providing this kind of tool is an effective way to develop your Employee Value Proposition

Better employee productivity

As we know, it is essential today to offer optimal working conditions to workers. Today’s employees attach particular importance to their professional environment and the tools available to them.

By offering a company car, you put your employees in the best position to carry out their tasks. They can move more easily, carry out their tasks in peace and above all, be much more productive .

Reinforcement of your brand image

Implementing a company vehicle system can help you stand out from the competition and weigh in the balance when recruiting . Such an advantage is sometimes crucial for certain individuals.

It is also an effective way to develop your employer brand . You take care of your brand image and pass for a company that knows how to value and pamper its elements.

Savings for your employees

Another advantage for your employees is at the economic level. Indeed, the cost of the vehicle as a whole is borne by the company.

Insurance, maintenance, repairs… all these expenses are borne by your company , allowing your employees concerned to use the service car without spending . A boon to reduce their business travel costs .

However, it is limited according to the date of entry into service and the CO2 emissions of the vehicle. Depending on the type of vehicle, you too can make some savings.

Limitation of expenses

By opting for a service vehicle and not a company car, you limit the expenses and the use of the vehicle in question.

The user cannot use it outside of working hours. He can only dispose of it in a professional context. And even if confidence reigns, you will be able to more easily control the journeys of your employees and reduce costs.

Between the purchase of the vehicle itself, the costs of insurance, maintenance and possible repairs, one can easily reach dizzying expenses to the point of being considered an unprofitable operation.

A committed responsibility

By opting for a company car, you should know that in the vast majority of cases, the vehicle registration certificate is always in the name of the company.

Thus, if the employee driving commits an offense such as speeding, the fine is for you. On the other hand, no withdrawal of points is provided for by law.

We mention it above as an advantage but it is also a disadvantage. The depreciation of a company vehicle is very limited.

It concerned in particular private or multi-purpose cars used for the transport of passengers. Recently, it has been replaced by a tax on carbon dioxide emissions and a tax based on the age of the vehicle.

Call on your cash : If your funds allow it, the optimal solution for financing a company vehicle is to solicit your own cash. This method of financing has the advantage of only committing the company for a short term and allowing it to own the vehicle(s). However, the costs incurred can be significant, hence the need to create a cash flow plan ;

Take out a loan : Before opting for this solution, consider carrying out a financial audit to determine the funds available to you. If you’re a bit cash-strapped, taking out a loan to buy a service car is a viable option. Be careful, however, not to increase the company’s indebtedness and to have the necessary funds to repay it;

Renting a vehicle : Depending on how useful you will make the company car, and depending on the frequency of use, renting this type of vehicle may be wise. A rental agreement allows the company not to have to deal with maintenance costs or insurance. You can dispose of the car and stop the rental as and when you want.

Equipping your company with a company vehicle is a decision that must be made based on many parameters. Sometimes a company car is mandatory, if only to carry out daily tasks.

But it’s also a way to offer the best tools to your employees so that they can excel in their field and increase their productivity.