Why Salesman Don’t Get Company Cars

Times have changed and prices have gone up.

Most salesman that work at car dealerships no longer get a company car. It used to be
what made sense for the company and a perk for the employees, but now unfortunately, with most companies that is a thing of the past. But there are good reasons for it.

1. To protect the dealership
2. Price of Insurance
3. Less money in the car industry

In theory it all makes sense to have the owner lend a car to the employee, where typical business mileage is paid for in terms of the fuel. Along with maintenance and repair costs, tire changes and oil changes. But nowadays it just doesn’t work like that. With years of lending out company cars it is very rare nowadays. As an alternative to a company car, sometimes it is more valuable and worth the money to simply offer a monetary allowance for transport to each of your employees. As always there may be drawbacks of doing this, such as potential abuse of the system, however, there are enough ways to monitor and prevent it from happening.

This is one of the major reasons why company cars aren’t dealt out with such easy access. The price of insurance has gone up drastically. If a dealership were to invest in giving cars to most or all of their employees it would cost a fortune.

Finally we have the fact that the money in the car industry is constantly fluctuating. Without a consistent flow of traffic and getting cars in and out of the parking lot, most dealerships can’t afford to risk money spent on company cars. With less money spent in the car industry, unfortunately effects not only the dealership but the employees as well.