What are the best practices for negotiating a salary package with a company car?

1 Know your options

Before you enter the negotiation, do some research on the different types of company cars and their benefits and costs. For example, you may have the choice between a car allowance, a car lease, or a company-owned car. Each option has its own implications for your tax, insurance, maintenance, fuel, and mileage expenses. You also need to consider the size, model, and features of the car, and how they suit your needs and preferences. Compare the value of the car package with your expected salary and other benefits, and decide what is most important to you.

2 Be flexible and realistic

Negotiating a company car is not a one-way street. You need to be prepared to listen to the employer's offer and rationale, and to adjust your expectations and demands accordingly. For example, if the employer has a limited budget or a strict policy on car allocation, you may have to compromise on some aspects of the car package, such as the model, the lease term, or the mileage allowance. On the other hand, if the employer is keen to hire you or to retain you, you may have some leverage to ask for more favorable terms, such as a higher car allowance, a lower lease payment, or a better insurance coverage.

3 Ask questions and clarify details

Negotiating a company car is not a simple matter of accepting or rejecting an offer. You need to ask questions and clarify details to make sure you understand the full implications and consequences of the car package. For example, you need to know who is responsible for paying for the tax, insurance, maintenance, fuel, and mileage expenses, and how they are calculated and reported. You also need to know what happens if you damage the car, if you want to change the car, or if you leave the company. Make sure you get everything in writing and review the contract carefully before signing.

4 Consider alternatives and trade-offs

Negotiating a company car is not an all-or-nothing proposition. You may have the option to explore alternatives and trade-offs that can benefit both you and the employer. For example, you may be able to negotiate a higher salary or a different benefit in exchange for a lower car allowance or a cheaper car model. You may also be able to negotiate a hybrid or electric car that can save you money on fuel and tax, and reduce your environmental impact. You may also be able to negotiate a car-sharing or a car-pooling arrangement that can increase your flexibility and convenience.

5 Be respectful and professional

Negotiating a company car is not a personal or emotional issue. You need to be respectful and professional throughout the process, and avoid making unrealistic or unreasonable demands, or taking offense at the employer's offer or feedback. Remember that the employer is not obliged to provide you with a company car, and that the car package is only one component of your compensation. Focus on the value and the impact of your work, and how the car package can support your performance and satisfaction. Express your appreciation and enthusiasm for the opportunity, and maintain a positive and constructive attitude.

6 Follow up and confirm

Negotiating a company car is not a one-time event. You need to follow up and confirm the outcome and the next steps, and make sure you fulfill your obligations and expectations. For example, you need to sign the contract and return it to the employer, and provide any documentation or information required for the car delivery and registration. You also need to keep track of your car expenses and report them to the employer, and comply with the company's car policy and guidelines. You also need to communicate with the employer and update them on any changes or issues related to the car package.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?