What is a Corporate Fleet Vehicle?
If you’re looking to buy a car for your business, chances are you’ve considered fleet vehicles. Find out what is a corporate vehicle and if it’s right for your business.
As a business owner or service provider, you may need to purchase a corporate vehicle for yourself or your employees. It’s can seem like a complicated process but in reality buying a corporate vehicle is not that much different from buying a regular car for yourself.
So, exactly what is a corporate fleet vehicle? And when do you need to consider buying one (or several)? That’s a great question that has a really uncomplicated answer. According to Entrepreneur.com, a fleet vehicle means simply a vehicle that is owned by a company and used for business.
If you have a business that makes deliveries, or requires you or your team members to regularly get around via car, then a corporate vehicle is something you definitely need. There are certain things that make a fleet car different from a regular one, and here’s how you can tell them apart.
How is It Different From a Normal Car?
When looking at a fleet vehicle, meaning a corporate car, next to a “normal” car, you won’t notice any difference. There isn’t a specific physical feature that distinguishes a car as a fleet vehicle, although some models are used more for commercial use than others. The only way to distinguish the two is by looking at who the owner is and how the car is used.
As mentioned before, a fleet car is owned by a business and used for operating the business. It could be a construction worker who has a Ford F-150 and uses it to take materials to the construction site. Or it could be a salesman who regularly drives his Prius from one city to another to meet with potential clients. Both are considered fleet vehicles, even though they are completely different and could also be owned by individuals.
Fleet vehicles are different from normal cars in the way that they are used and how they are owned. But in reality, there is no difference that you can notice just by looking at the car. That’s where a lot of people get confused, they think that a corporate or fleet car is marked differently or has some kind of other features. When really it’s just the same as the car you own personally.
Fleet vehicles are different from normal cars in the way that they are used and how they are owned.
Because corporate cars are owned by the company rather than the individual, there are certain things that make it unique. For example, it is possible to get a better loan or lease on the car because the company is purchasing it rather than the individual. The company owner may not have very good credit or may not be in a financial position to get a good loan, but the company will likely be able to get a loan through the bank or the car dealer.
It also puts less burden on the individual, because the company is responsible for payments, financing, and insurance rather than the owner. Because fleet cars are company owned, there can also be certain tax advantages, deductions, and lowered costs.
Benefits Of Fleet Vehicles
Some of the benefits of corporate cars include, price discounts, better lease options, convenience for employees and additional advertising. If you’re looking to buy multiple fleet cars, you can likely get a discount from the dealer, even if it’s only a few. This means that you could potentially get a car at a lower price if you buy it as a fleet vehicle rather than a personal car.
Providing corporate cars to your employees can also boost morale and a sense of convenience and comfort. Your employees will most likely appreciate having a company owned car to use and it can give them more autonomy in their work. This can be a big plus for your company culture. Another added bonus to fleet cars that you might not think of is the potential for additional advertising. By putting your logo and company information on your cars, you can turn your fleet vehicles into rolling billboards for your business.
You Decide if It’s Right for You
Now that you know what a corporate fleet car is, it’s up to you to decide if it’s right for your business. Ultimately, fleet cars can be beneficial to your company but the decision comes down to your unique business. Depending on your situation, you may or may not need to start looking for fleet cars. But at least you are equipped with the knowledge of what a corporate fleet car is and how companies can use it.
If you’re ready to purchase, learn more about our fleet vehicle service here.