Before you invest in a fleet of cars, know the value of each one. That means knowing how much it costs to run and maintain each vehicle, as well as how much revenue your company will generate from it.
Determining the right size of a company car for your business depends on more than just the number you want to buy; it also depends on the number of employees you have and how many people travel within that group.
This article outlines five factors that can help you appropriately size a company car addition to your business.
Determine How Many Employees You Have
The first step to determining the right company car size is knowing how many employees you have. This is the best way to ensure that your company has the number of vehicles it needs. You should also be sure to track the total amount of mileage each employee takes.
If certain employees regularly drive more than others, you could run short on usable vehicles if you don’t know that. Tracking this data can also help you identify which employees are responsible for the majority of travel in your company.
If you know the number of people who travel within your company and how far they travel, you can begin to further classify the employees and understand how they use the vehicles.
Know How Much It Costs To Run And Maintain Each Vehicle
It’s important to know how much it costs to run and maintain each vehicle in your fleet. It’s also important to find a way to track the mileage of all your vehicles to ensure that you stay within your budget. You can do this by installing a GPS tracking device on each vehicle.
This can help you to keep track of the mileage and ensure that you’re not overusing each car. If you do have a fleet with a heavy concentration of high-mileage vehicles, it can help you to understand which cars are being overused.
If you don’t have GPS installed on your vehicles, you should find a way to track the mileage of each vehicle. You can use a spreadsheet or program to track mileage and ensure that you stay within your budget.
Determining The Revenue Of Company Car Addition
The next step is to determine the revenue the company car will generate. You can do this by looking at how many miles each car is driven and how much revenue each trip generates.
The revenue you get from a trip can depend on many factors, including the price of the trip, where you go, and when you go.
If you want to get a better idea of how much revenue each trip will generate, you should use different routes and times, and vary the prices of the trip.
Make Sure You Can Deduct The Cost On Your Taxes
Another thing to consider is whether or not the bijtelling auto van de zaak (company car addition) can be deducted from your taxes. You can only deduct the cost of the car if it’s used for business.
To ensure that you can deduct the cost of the company car addition from your taxes, make sure that each car in the fleet is used for business purposes. You can’t deduct the cost of a car if it’s used for personal trips or non-business purposes.