New Business - Company cars

[Muzzer79]

I am involved in a start-up company in the UK. The business is less than 1 year old but is expanding reasonably rapidly and is well-funded.

As we take on new staff in senior positions, we have a need to provide company vehicles - several do not wish to take an allowance, preferring a supplied car, electric/hybrid if possible.

At present, we are looking to provide 5 cars, but this will increase over the coming 12 months.

We have spoken to several lease providers and brokers, but our issue is a lack of credit history - most providers are asking for 2 years' accounts before offering credit sufficient enough to be able to operate with them.

Consequently, we have been hiring on a monthly basis through a regular hire car provider, but it's not very cost effective - even against short term lease deals available through brokers.

Has anyone had experience of a similar situation and/or recommendations as to what (if any) cost effective lease options/providers are available?

[Jazoli]

Surely the simplest way is remove the option of taking a company car and pay a car allowance only?

My wife's company did this and there were a few grumbles but they still manage to recruit and retain staff.

[RicksAlfas]

Could you purchase through HP?

[Forester1965]

Jazoli said:

Surely the simplest way is remove the option of taking a company car and pay a car allowance only?

My wife's company did this and there were a few grumbles but they still manage to recruit and retain staff.

Bear in mind if the company is new and you're bringing in good quality hires, they might not want to personally commit to buying/leasing an appropriate vehicle over 'x' years in case the job or company doesn't work out.

[Muzzer79]

Forester1965 said:

Jazoli said:

Surely the simplest way is remove the option of taking a company car and pay a car allowance only?

My wife's company did this and there were a few grumbles but they still manage to recruit and retain staff.

Bear in mind if the company is new and you're bringing in good quality hires, they might not want to personally commit to buying/leasing an appropriate vehicle over 'x' years in case the job or company doesn't work out.

Yes, this is our concern.

People come in with a 3, sometimes 6, month probation period. To ask them to buy a car from the get-go carries risk on their part if things don't work out for whatever reason - especially with the current cost of decent cars so we're looking into at least supplying cars for their probation period.

[Muzzer79]

RicksAlfas said:

Could you purchase through HP?

Again, the lack of credit history is an issue and we'd rather the support of a lease provider for maintenance, loan vehicles, etc (if we can)

[Supert Stu]

Have sent you a pm

[LooneyTunes]

Muzzer79 said:

Yes, this is our concern.

People come in with a 3, sometimes 6, month probation period. To ask them to buy a car from the get-go carries risk on their part if things don't work out for whatever reason - especially with the current cost of decent cars so we're looking into at least supplying cars for their probation period.

Figure out how to protect yourself from staff turnover issues. If someone leaves you might be stuck with the car. If you replace them there’s a risk of ongoing grumbling about it being not their choice and/or (perhaps genuinely) unsuitable.

Unless they’re field sales roles, I doubt many startups provide a car these days.

[MustangGT]

LooneyTunes said:

Muzzer79 said:

Yes, this is our concern.

People come in with a 3, sometimes 6, month probation period. To ask them to buy a car from the get-go beginning carries risk on their part if things don't work out for whatever reason - especially with the current cost of decent cars so we're looking into at least supplying cars for their probation period.

Figure out how to protect yourself from staff turnover issues. If someone leaves you might be stuck with the car. If you replace them there’s a risk of ongoing grumbling about it being not their choice and/or (perhaps genuinely) unsuitable.

Unless they’re field sales roles, I doubt many startups provide a car these days.

Exactly. I would not expect to be offered a car during the probation period at all. Until the probation is finished everybody is at risk of the employment not working out.