How to create a car policy

Car policy, company car policy, company car policy – there are many names for it, but what is it really and why is it needed? Simply put, it is a guide to everything related to the company's benefit and company cars. It provides answers to questions such as:

– Which cars are okay to use?

– How do we take care of and service the cars?

– Who pays for fuel, parking and insurance?

Why should I have a car policy?

In short, to keep everything running smoothly and to save money. The vehicle fleet is a major expense for many companies and finding a balance between cost, brand, environment and comfort can feel like a challenge. With many parameters to consider, it is extra important to have a common view on everything from procurement and ownership to how the cars should be driven.

A good car policy saves money, increases safety, simplifies administration and reduces the risk of misunderstandings and conflicts. A good car policy is also an investment for the future. It creates security and clarity for both you as an employer and your employees, and contributes to a more sustainable vehicle fleet.

How do I create a car policy and what should a car policy contain?

Start by thinking about your company's needs and wants. Then use our checklist for inspiration and structure.

1. Who gets a company car? First of all, decide which job roles have access to a company car and a company car. Also decide what applies in the case of, for example, probationary employment.

2. Choose a supplier. Who should you buy or lease the company cars from? How should ordering and delivery look like? Should you choose operational leasing or financial leasing?

3. Choice of vehicle. Should it be a free choice or should you have a ready-made list of recommendations?

4. Price. How much should the car cost? When setting the price - decide whether you want to base the price limit on the price base amount (the new car price), or the actual total cost, Total Cost of Ownership (TCO).

5. Responsibility. How should responsibility be divided for following the car policy? Typically, it is divided between drivers, employers and leasing companies.

6. Cost-effectiveness. Write down how long a car is owned, taking into account how it is used and when it is most cost-effective to replace the car.

7. Fuel, driving record, mileage reimbursement and congestion tax costs. How should the costs of the congestion tax be distributed? Should company car drivers receive fuel cards for current expenses?

8. Other costs, negligence and violations of the law. Clarify how things like fines, illegal driving, or a suspended driver's license are handled.