Seeking Advice on Creating a Company Car Policy for Our Sales Team

We provide a leased car to our sales force. I am in the process of formulating a policy wherein they are responsible for the same. I have seen the attachments on the website, and none of them are helpful to me. I would highly appreciate it if someone who follows a policy along the same lines could share the policy.

Regards

It is better to talk with the seniors in your organization to formulate a car policy. One thing you need to carefully check before preparing a car policy is whether the car is used based on job priority or person priority.

Considerations for Formulating a Car Policy

When formulating a policy, you need to consider:

- Is the car going to be allotted to just one person for their sole use?
- Or is the car going to be used by a number of people?
- Is there going to be a company-employed driver?
- Where is the car going to be parked overnight and at the weekend?
- Is the car allowed to be used for private purposes?

If the car is as in question 1) and/or a company driver is employed, the policy should clearly state that:

1. The employee MUST carry out safety checks once a week, to include oil levels, water levels, windscreen washer levels, and tyre pressures.
2. The car is representative of the company; therefore, it must at all times be kept clean inside and out.
3. The MINIMUM amount of fuel that MUST be kept in the tank at all times, particularly if the car is a diesel variant.
4. A log MUST be maintained recording all journeys to include odometer readings at the start and end of each journey.

If the car is as in question 2), then a manager should be given the responsibility to ensure that the above points are maintained.

In addition, you should also clearly state who is responsible for servicing, maintenance, and insurance, as well as the responsibility of costs should the car be involved in an accident or totaled.

A point often overlooked is banning the use of mobile phones while driving (unless a Bluetooth unit is fitted) as there is ample evidence to show that many accidents occur when talking or texting while driving.

There are many other things you can add to such a policy; the above should set you thinking along those tracks.

I hope the above helps.

Regards,
Harsh

It is not clear whether your company is going to provide a car or cards to the individual salesperson or to the department. If it is for the entire department, you cannot establish a policy. However, if it is for an individual, you can create one.

Questions to Consider

Questions to consider are whether the car is self-driven or chauffeur-driven, and if the chauffeur is a contract worker or a permanent employee of the company.

Conditions for Individual Use

If it is for an individual, you can include the following conditions:
The person can use the company car with the following considerations:
- Safety of the car
- Maintenance of the car (either by the company or the individual on a reimbursement basis)
- Petrol, of course, will be covered by the company
- Whether the car should be used collectively or individually
- Custody of the car - who is responsible for the car?

Ensure there is a single line break between paragraphs.

Types of Car Policies

Car policies come in various types, with the main ones being:

1. Car ownership scheme (where individuals purchase a car, and the company reimburses the EMI + maintenance costs).
2. Company car scheme (where the company buys the car and provides it to eligible employees).

Regards

I have prepared a PowerPoint presentation for you that can be presented to your superiors. I hope it is useful to you. There are other documents to follow, such as applications for the scheme, approvals, legal agreement formats, etc.

Regards,
Michael
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

Here are a few tips that might help you and elaborate on your suitability. There is no need for a lengthy policy; it's only simple operational guidelines, delegation of duties, and responsibilities together with the essential powers in this context.

1. You can hire one or more contract tour/travel operators with fixed terms for different types of vehicles. Finalize the terms after obtaining competitive quotations and renew/reissue them periodically.

2. Once arrangements are made, your unit head or team leader could be empowered to detail or summon/allocate a suitable vehicle on a day-to-day basis. You might set a ceiling on the likely amount involved or territory or client basis. The team leader, in turn, will authorize a senior or experienced member of the team to authorize the logbook/trip sheet.

3. All trip sheets for visits shall be submitted to the team leader together with their bills once a month or once a fortnight. The team leader shall ensure the bona fide use and pass those bills for payment.

4. The allocation of cars shall depend on the purpose and occasion it warrants.

5. Generally, we tend to scrutinize such utilization vis-a-vis the orders received from each visit, especially from a sales team, which cannot always be justified. However, checks shall be adequately exercised to curb misuse.

Alternatively:

1. When own vehicles are used, mileage allowances based on the type of vehicles used could be reimbursed using approximate mileage estimated to and fro.

2. Depending on the requirement, one or more vehicles can be hired and kept at the disposal of the team at the office premises itself, which can be used as and when necessary. The power to authorize exact use could be vested in the hands of the team leader, and payment of bills could be settled as explained above.

3. You may use a monthly fixed rate allowance method for the team members without going into an elaborate procedure, subject to certain guidelines based on your requirements and checks and balances.

Regards