Do you have a growing, sales-oriented business that is doing particularly well? If so, you may be looking to expand and will want to take on new salespeople to cover some new territory. Of course, the sales process will involve face-to-face communication and each new employee will have to travel extensively as they work their magic. One way or the other, you will have to figure out their transportation needs and may be looking at various options, but why should you think carefully before buying or leasing a vehicle? Could there be better options?

Long-Term Lease Issues

Traditionally, a business owner like yourself might choose to get a company car for these employees, by taking out a multi-year lease. However, this can present an issue if the employee in question doesn't work out for some reason. If you have agreed to a long-term lease in the name of this person but find that you have to let them go sooner rather than later, you can expect some issues in trying to reallocate the vehicle to a new arrival.

Personal Usage

When you're going through the recruitment process, you may ask candidates whether they have their own vehicle or not. You may be thinking about asking them to use this car and you will, in turn, give them a mileage allowance. However, you need to take into account your liability first and remember you don't know whether this vehicle is in good condition. Furthermore, does the insurance allow them to drive for business use or simply for pleasure and if there is a grey area here, you could be facing a lawsuit in the event of an accident.

Watching the Allowance

You should add up the costs of that mileage allowance to see how much it is really going to cost you in the long run. Typically, this figure is quite generous and may work out to be more than the better option.

Renting Is the Answer

Why not think about renting a car on a short to midterm basis instead and remember you can take out a contract for three or six months if you need to. In this way, you'll be able to vet any new starters by taking advantage of a competitively-priced contract. Unlike leasing agreements, you're not likely to come up against any significant, early termination penalties. Look into car hire. 

Getting the Details

Have a word with a corporate car hire specialist, to see how they can help you to expand successfully.