Many small trade businesses start with employees using their own vehicles for occasional work-related driving. As the company grows, however, there may come a point when dedicated company work vehicles make more sense.
There isn't a universal fleet size where that transition should happen. The better question is whether personal vehicles still fit the way the business operates.
When Personal Vehicles Can Work
For occasional business driving, using employee-owned vehicles can be a practical arrangement. Businesses may reimburse employees for qualifying business mileage or vehicle expenses under an appropriate reimbursement policy.
However, occasional trips are different from asking an employee's personal vehicle to function as a work vehicle every day.
Look at What Employees Are Actually Doing
As field work increases, consider how employees are using their personal vehicles.
Are they regularly traveling between job sites? Carrying company tools or materials? Making frequent customer visits? Towing or transporting equipment? Putting substantial business mileage on their own vehicles?
If business use has become a major part of the vehicle's daily role, it may be worth evaluating whether a company-owned vehicle is a better fit.
Company Vehicles Give the Business More Control
With a company-owned work vehicle, the business chooses the vehicle based on the work it needs to perform.
The company can also establish consistent policies for authorized drivers, maintenance, fuel, vehicle use, and equipment. That's different from relying on employees' personal vehicles, which may vary considerably in age, condition, capability, and suitability for the work.
Insurance should also be reviewed carefully whenever employees drive for business, whether they use personal or company vehicles. The appropriate coverage depends on the business and how the vehicles are used.
Consider the Employee Side Too
Regularly using a personal vehicle for work can mean additional mileage and wear for the employee.
A reimbursement program can address qualifying business vehicle expenses, but it doesn't necessarily answer the broader operational question of whether an employee's personal car or truck is the right vehicle for the job.
As a company adds crews or expands its service territory, providing work vehicles may become part of building the infrastructure needed to support field operations.
Plan for the Transition to Company Vehicles
Moving to company-owned vehicles gives a business greater control over how its work vehicles are selected, maintained, and used. It also means bringing expenses such as insurance, maintenance, registration, fuel or charging, and fleet administration into the company's operating plan.
Clear vehicle-use policies are important as well. If employees are allowed to commute or use company vehicles personally, there may be tax and recordkeeping considerations depending on the circumstances, so businesses should work with their tax and insurance professionals when establishing those policies.
Planning for these responsibilities from the beginning can help a business build a fleet that supports its crews and continues to work as the company grows.
Is your business reaching the point where dedicated work vehicles make sense? Connect with the Jet Chevrolet team at (253) 336-4216 to discuss your commercial vehicle needs. Do More. Save More. Experience MORE.
Final Thoughts
Employee-owned vehicles can work well when business driving is limited. But, as crews spend more time on the road and vehicles become more important to daily operations, dedicated company work trucks may deserve a closer look.
Consider how often employees drive for work, what they're carrying, what the job requires, and how much control the business needs over its vehicles. The right time to build a company fleet is different for every business, but the decision should follow how the company actually operates.