You utilize a fleet of vehicles to transport your employees all over the city. You want them to look sharp and make a great impression on anyone who takes a trip in one of your executive vehicles. Today’s blog from CoachWest explains how investing in an executive bus improves your bottom line.
Related Post: How to Provide a Luxury Ride in an Executive Bus
Let’s say you utilize an executive bus once per week. The costs of renting an executive bus will add up over the course of a year. On the low end, suppose a rental is $100 per hour at a five-hour minimum. You spend $250,000 a year on rentals. Even if you rent this executive bus once every two weeks, those rental costs are $125,000 a year (again, on the low end). Suppose a brand-new executive coach costs $250,000 to purchase. Buying one is the same as a year or two of rentals, and it’s a tangible asset that retains value for your company. The longer you own an executive bus, the more cost-effective it becomes.
Versus a Fleet of Executive Vehicles
You own a fleet of four sedans that hold five people each, and you use all of them at least once every two weeks as your teams go to meetings throughout the city. Owning an executive bus that holds 40+ people might be more cost-effective than maintaining a fleet of smaller vehicles. Your maintenance, gas, and insurance costs may be lower with a luxury executive bus versus a fleet of high-end sedans.
Make Great Impressions on Clients & Prospects
An executive bus makes instant and fantastic impressions on clients and prospects. When you’re in the market for a top-level hire or huge contact (and competing with other companies), an executive bus can tip the scales in your favor. You may see less turnover, better recruitment, and higher sales on the idea that an executive bus means you’re taking whatever business meeting you have very seriously.
Consider the tax incentives of purchasing versus renting an executive bus. Purchasing a vehicle is a capital investment, and it depreciates its value over time. You could lower your company’s income tax liability for every year you own your executive bus. Although you could write-off vehicle rentals, the limits that apply to rentals might not be as great as those of vehicle purchase and ownership. Consult with your company’s accountant or CFO to determine the best tax situation for your firm.