Company car – for what purposes can it be used?

Did you know that a company car offers many benefits to an employee? He not only facilitates daily activities, but also helps in everyday life. Do you want to know more about what purposes you can use it for?


Company car – definition

Company car – as the name suggests, is a vehicle that belongs to the company. It is used to perform official duties. Company fleets most often provide their vehicles for sales representatives and senior managers. It is becoming more and more common for companies to agree that an employee may use a company car in his or her private life. Most often, this type of situation is treated as a so-called bonus to the contract.

A company car should only be used by an employee for work purposes. There is no denying that a company car is a great convenience. First of all, an employee can use a car to commute to work and back.


company car

An employer who hires a new employee for his company is required to provide him with a number of resources that he needs to perform his duties. This involves equipping his workplace and sometimes even granting him a company car. Generally, company cars can be used for private purposes, but this requires special authorization from the employer.

Owning a company car is not available to everyone. The main duty of a person who owns a company car is to keep it clean. Undoubtedly, driving culture or observing the rules of eco-driving are of great importance. This significantly reduces the cost of fuel consumption. Often their duties also include checking the condition of fluids or refilling fluids such as windshield washer fluid. It is worth noting that an employee can be held liable for negligence if they behave in a way that is contrary to the contract or the rules of using a company vehicle.

A company car also offers many benefits to the employee. It not only facilitates daily activities, but also helps in everyday life. However, it is worth remembering the responsibilities associated with its use. You have to return the car in the same condition as you received it. Therefore, before you pick up the keys to your car, you should familiarize yourself with the rules of vehicle use.


Company car – responsibilities

When an employer entrusts an employee with a company car, that employee has an obligation to take care of it. Every company with its own fleet should have regulations and procedures. They should define in detail the rules of use of company cars by employees.

The most common user responsibilities include:

  • washing and cleaning the car interior
  • taking care of the level of fluids
  • reporting irregularities in the operation of the vehicle
  • parking in guarded parking lots or in a garage
  • safe and economical driving
  • returning cars for periodical check-ups (if there is no coordinator in the company, sometimes the employee has to remember about it himself)
  • accounting for the driven kilometers.

Nowadays, many companies equip their vehicle fleet with a GPS monitoring system, through which they control expenses by taking data from fuel cards.


Company car – contract

A company car is considered to be one of the benefits of a position that requires an employee to be mobile. If an employer decides to entrust a car to an employee (or employees) it is worth concluding an appropriate agreement (between the employer and the employee) on its use. Another solution can also be used in this case – regulations. The rules should include the rules of receiving the car, giving it back, responsibility for the property, the way of accounting for it, the procedure in case of an accident or a road incident. If you sign only the regulations instead of the agreement, any changes are introduced only within the regulations. Changes in the agreement make it necessary to sign a new agreement.


Mileage limit – what does it mean?

Generally speaking, an employee uses his private vehicle for business purposes and the employer settles accounts with him on a mileage basis. However, the condition for reimbursement of costs on this account is keeping records of the mileage of the vehicle. It is also necessary to indicate the expenses incurred for its use for business purposes. This solution is an alternative to the relatively more common company cars.


More information can be found HERE

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