A company car is a vehicle given to an employee by a company for various reasons, including as a bonus or necessary tool for the job. The company remains the owner, but the employee can use it for personal use. The company pays for insurance and maintenance, and fleet insurance is an option.
A company car is a vehicle issued by a company to an employee. Company cars can be issued for any number of reasons, such as as a bonus or additional compensation for an employee. They can also be issued because they are a necessary tool to complete a job.
A company car can be issued to managers, executives or other senior managers in a relatively high position in a company. In this case, the car is usually issued as a form of bonus or compensation. The car remains in the name of the company and the company is the owner, but the employee to whom the car is issued has the right to drive it.
When the company allows an employee to use the car for personal use, the employee receives the benefit of a vehicle so they don’t have to purchase their own vehicle. This is a form of compensation, but it’s not taxable, so it can be a great incentive. The company also pays for the insurance and usually auto maintenance and repairs as well, although the employee is typically responsible for their own gas.
Company cars are regularly issued to senior employees in the rental car industry. In many situations, managers and other employees are able to choose a car from the parking lot to drive, even though they may have to switch cars periodically. Car dealerships also issue company cars to employees.
Other industries may provide a company car to employees as well, even if their business model or purpose does not involve vehicles. In some large cities, a company car is also issued with a driver. For example, in New York City, many high-level executives are offered car and chauffeur service by their companies.
A company may also issue a company car to an employee if a vehicle is required to do his or her job. For example, a limousine driver may drive an owned car while doing the bulk of his or her job. In this context, the employee generally does not have the right to use the vehicle for his own personal use and is limited to using the car for specific business purposes.
A company that issues multiple company cars usually purchases a fleet insurance policy in order to insure the vehicle. This is optional, however. In most cases, the employer also has the option of insuring each vehicle individually.
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