Car Policy Dilemma: Is Leasing, Allowance, or Purchasing Best for Our Small Team?

Hi all,

I am new on CiteHR but have been using it a lot! Thanks a lot to everyone for making this site interesting and helpful.

We are making a car policy and wanted to know if car leasing, car allowance, or car purchasing is better for the company. We are offering this benefit to only a few employees (at the max 15). Please guide me as to what to recommend.

Car allowance is the best option, as it is a fixed amount that is paid only until the employee is hired.

Car lease: In the event of employee separation, there are lease termination penalties.

Car purchase may seem low cost, but has too much administration and employee separation implications.

I would go for Option 1, as it is in the best interest of the company and the employee. If your company wants to have its branding on the car, you will have to go for Option 3.

I agree with Bosco that a car allowance is the best option as it is a fixed amount.

In a car lease, you benefit from the company's assistance in obtaining the car at a low cost. However, separation can be challenging due to the procedures involved, such as foreclosure of the case and the requirement of numerous documents for transferring the RC. Most importantly, you need a NOC from both the bank and the company.

Thanks,
Shweta Jaitly