The process of deciding to buy a business vehicle should be more complex than that of a personal vehicle. The reason for this is because your personal vehicle can easily be disguised or upgraded according to your needs, but a business vehicle will be the face of your business around town.
The decision to purchase a personal vehicle is mainly based on emotion, but in this case, it’s day and night when considering a new business vehicle to serve your employees and your business well. Making a decision cannot be made on impulse. There are various factors that need to be considered when choosing a company car. Here is what matters most:
- New, used or lease
There are three important factors to consider before you take the plunge on your business vehicle: new, used or leased vehicle options. New is, of course, when you purchase a brand-new vehicle out of the box. Used is commonly known as a second-hand vehicle, and leasing is when you agree to pay a specific fee over a short or long period of time to be able to drive or ‘rent’ a vehicle.
If you choose to lease a vehicle, it will never be owned by you unless the dealership or owner is open to negotiation once the leasing period has come to an end. When choosing a new or used car, make sure that you weigh up the options between paying in the extra money to buy it off the dealership’s floor or if you are prepared to pay for recurring maintenance costs on a used car. Once you have a clear idea of what the purpose of the vehicle will be, as well as the period in which you wish to use that vehicle for, you will be able to make a decision. Every type has its own challenges, so speak to professionals beforehand.
- Efficient fuel economy
It is advised that you write down a list of your needs before you consider a group of cars that can meet those needs. One of the first factors to consider is the fuel economy of the vehicle you are interested in. Make sure that you have a clear idea of who will be driving the vehicle and for what purpose, as well as factor in the amount you are willing to pay (or can afford) on fuel per month.
- Secure safety features
Depending on where you are based, you will need to factor in the weather, location and general safety to ensure that the employee who will be driving the vehicle feels safe and comfortable in the vehicle at all times. Some standard vehicles come with the option of add-ons, so think about the impression you want to give off to your clients and your employees when choosing a model.
- Meets your budget
Cheap might be affordable but it might not be the most durable option in the long-term. This does not mean that you have to purchase something that puts you in debt, simply to ensure your employee is safe and it lasts the company a long time. As an investment, this simply means that you will need to find a selection of options that suit your budget while factoring in the maintenance and repairs, insurance and fuel costs you’ll need to cover over a certain period of time. Also, have a look at a car retail value calculator to see what you could expect from the resale when you decide to sell a particular vehicle.
- Make sure it looks the part
The visual experience of purchasing a car is the most exciting part of the entire process. However, when you choose to purchase a vehicle on behalf of your business, you will need to forget looking for cars on a personal level and look at what the vehicle can do for your company. Every company’s vehicle can tell a story. Be it by the funkiness or its effect on the environment, take the time to figure out what story your potential vehicle will tell about your company versus the story you want it to tell.
- Look at your car insurance options
Any investment that you purchase for your company is a financial risk. If you are going to be using the vehicle to transport goods or for your employees to drive around, make sure you have investigated the different insurance options and chosen the right one according to your needs. You never know what could happen to an employee while driving, so it’s best to look at the levels of coverage available to you.
Final words
You might have an idea in your head of what the ideal car would be for your business needs, but sometimes that idea doesn’t make financial or realistic sense. Shop around and look at a book value calculator to view the expected monthly repayment on the vehicle you have your eye on. Once you’ve singled out your options, view the car’s value on a calculator and then compromise on unnecessary features. Make sure your decision is worth your while for now and in years to come.
Also view:
Vehicle Finance, Car Insurance and Road Safety
Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer
The Online Vehicle Retail Market and Safely Selling Vehicles Online