A
car these days is no longer a luxury… it’s an absolute necessity. It’s nothing
new for businesses to offer employees cars as part of their compensation and
benefits package. So if an employer offered you either a car allowance or car
leasing in Melbourne, which one would be best for your needs? Here’s a little insight on the pros and cons
of both to help you decide.
The second vehicle
It
would be a no-brainer for a car-less employee to select the company car, so
let’s assume you already own one. Would an additional vehicle be an incentive
to you? The answer would be yes, more so
if you have family members who could benefit from using your personal vehicle
during the week.
Wear and tear
Car
allowances will pay for your fuel and maintenance for business trips, but you
assume all risks associated with owning the car (repairs, insurance, accidents,
etc). You are also required to accurately log the mileage and provide
business-related expense receipts to an accountant. Where there’s cash
released, there’s always a liquidation report that follows.
Perks of the job
Inasmuch
as a company car is like a badge of honour for employees, it can also serve as
a come-on for potential hires. Although
some companies require that the vehicle be returned when the employee leaves
the firm, others put the vehicle on a Novated lease in the employee’s name so they’d
have the option to buy it for themselves.
No comments:
Post a Comment