One of the many responsibilities of a business owner is the acquisition of company assets. Amongst these assets is often a company vehicle that can be used for a number of tasks. Now, seeing as how this particular asset is often funded from company means and has a direct impact on the functionality of your business, it’s vital that you make the right choice. So, for all those who are looking for advice on the matter, here are six important things that you have to know when it comes to choosing your car.
1. What do you need it for?
The first thing you need to take into consideration is the importance of knowing exactly what this car will be used for. Why? Well, mostly because it affects your priorities when it comes to vehicle features. Is this the vehicle that you are going to use for the delivery? In that case, fuel-efficiency and the trunk size may be pivotal for your choice of the vehicle. On the other hand, what if this vehicle is something that you, as a business representative are going to drive on business meetings. A lot of people will make an estimate of how well your business is doing based on the vehicle that you’re driving. In that case, going for something a tad more luxurious would be the way to go.
2. Leasing or buying
Another thing worth keeping in mind is the fact that buying a car is not your only option. You can also lease it, which comes with a long list of benefits. The initial cost of the vehicle is something that you definitely need to take into consideration. The number of tax advantages for leasing a car through your business is also quite formidable. How likely are you to change the vehicle? If this is a justified concern, then you definitely need to consider leasing the vehicle in question. Leasing also comes with lower monthly payments, which is a great boost if you’re trying to lower the overhead of your business.
3. Set a budget
Before you proceed, you need to set the budget. You should start by asking just how much of a company car can you afford. Second, you need to explore your financing options. Fortunately, when it comes to commercial vehicle finance, your options are quite numerous, as well. How much money you have to spare on this is one of the determining factors when it comes to the model and the age of the vehicles that you’re going to look for. Seeing as how vehicles are one of the asset types that get hit by depreciation the hardest, one of the biggest decisions that you’ll have to make is whether to go for a new car or a used one.
4. Do your research
So, are you going to buy a new vehicle or a used one? This is also why it’s so important that you do your research on time. With so many platforms and dealerships out there, you have all the tools to explore your options and find the right price and the right vehicle. You could also contact your local dealerships, however, the biggest benefit of online platforms is the fact that you can use a filter system to set the model, the year and the price range that you feel comfortable with. This way, you can get the exact vehicle that you were looking for at the tip of your fingers.
5. Marketing opportunities
Owning a corporate vehicle opens up so many options when it comes to branding. For instance, will you use it as a mobile billboard? By printing your logo on the side of the vehicle, you get to raise brand recognition wherever you go. Nonetheless, this gives you one more factor to weigh in, which is – how will your logo fit? Then again, is it just about the logo? What if you also want to add your website’s URL or social media handles to the mix? Is there going to be enough room for this and what font will you go for. Try envisioning this ahead of time. One last thing, going for a car in color of your brand can aid in your branding quite a bit.
Lastly, seeing as how this car is an asset it is an investment that has its own cost-efficiency. This means that it has a certain initial cost that will have to pay itself off (at least partially). For starters, you have the issue of fuel-efficiency of the vehicle. If you’re using this vehicle for delivery, fuel-efficiency should be one of the key factors for you to keep in mind. Then, you have the issue of maintenance. How hard it is to find parts for the vehicle in question and how much does the overall maintenance cost?
As you can see, this is a major business decision and one that’s more than worth your time and careful consideration. As an entrepreneur, you’ll find yourself in a situation where you have so many such decisions to make. Still, as a person, you might give yourself some room to pick the model that you like the most (even though some of the above-listed criteria may be a priority).