I'll Take A Ferrari, Please Obviously, employees can't have any car they want, but options can't hurt.

Are your employees begging you to buy them orange Beetles withbuffalo bars as their business cars? While the hot new Volkswagenmay win their hearts, it could send the wrong message tocustomers...unless you're in the clown or safari business.

Definitely consult employees regarding their needs withbusiness-specific utility or service-type vehicles that may requireshelving or extra cargo capacity. But with sales fleets, thecompany car is more than a tool; it's also likely to be theemployee's primary vehicle. Almost 90 percent of company carsare used by employees as their personal cars, according to GregCorrigan at Peterson, Howell & Heather Vehicle ManagementServices in Hunt Valley, Maryland. This is where you should beflexible regarding employees' transportation, especially ifthey have families.

Although company cars are no longer considered perks but rathernecessities, giving employees too much latitude in picking theirvehicles can hurt your business in the long run with resaleproblems. However, if employees seek a reasonable amount of inputin the process and retention is an issue, giving them a choice ofmodel or color can boost morale.

To avoid requests for slick sports cars or luxury sedans yourbudget won't allow, follow these steps:

Set up company-car guidelines after determining youremployees' needs, and

short-list preselected model lineups and specificoptions, stating that additional options or equipment must beapproved by the company and paid for by the employee.

Jill Amadio has reported on the automotive industry for 23years as an editor and consultant.

Contact Source

• PHH Vehicle Management Services, (800) ONLY-PHH,www.phh.com