A recent study by Ford and Manta on Tycoon Story showed that more than 59% of business owners expressed a need for a vehicle in their business. A car can be a good investment for your business. It could make transporting goods and people much more convenient and may be necessary for your business expansion plans. Having a vehicle within reach can also help you achieve your business goals.
Choosing to purchase a vehicle for your business can be challenging. Fortunately, there are pointers you can ponder on even before stepping inside a dealership. Today, we’ll discuss four key tips on buying a car for your business:
Choose the correct vehicle size
Before purchasing a vehicle, you must assess how you will use it for your business and determine how much space you’ll need. A large truck might be worth considering if you’re hauling large equipment. If you’re mainly shutting passengers to different destinations, you can ensure their comfort and safety in a van. Finding the most logical solution to your business needs requires a moment of introspection and a ton of research.
The car market for businesses today has a plethora of options for different sizes and scopes, which could make choosing difficult. By having an idea beforehand of the correct vehicle size you will need based on your usage, you can narrow down your options to vehicles that can meet the needs of your business.
Consider maintenance expenses and fuel economy
Gas and maintenance costs can form a considerable part of your business operating expenses. It’s essential to keep tabs on your chosen vehicle’s fuel economy and maintenance costs. In our blog post entitled ‘Financial Management: 5 Tips for Your Business’, we emphasized the importance of financial planning. This involves having a spreadsheet that anticipates all of the company’s fixed expenses—and gas and maintenance should be one of those expected operating costs.
To this end, you can utilize online tools such as miles-per-gallon calculators for different kinds of vehicles on the market. You can also compare the maintenance costs of other vehicles and calculate how much they add up the longer you own the car.
Check your insurance options
Car insurance is required by law in all but two states (Virginia and New Hampshire) because they offer financial protection in case of losses, such as any damage to the vehicle and medical bills from accidents. As a business owner, a car insurance policy can give you peace of mind should unexpected events affect you or your vehicle.
Fortunately, there are ways to keep your car insurance premiums down. You can consider increasing your deductible so you can get a lower premium. The make and model of the car you choose can also significantly impact your insurance rates. Sound Dollar lists the cheapest cars to insure — and compact SUVs like the Ford Bronco Sport are at the top of the list. Pricier vehicles with many innovative features are more expensive to insure because they cost more to repair. Japanese brands such as Toyota, Honda, and Subaru also tend to be cheaper to insure compared to American brands. Because insurance rates differ depending on your vehicle type and usage, you can first determine your vehicle needs and your insurance options before deciding on a specific plan.
Prioritize the aesthetics
Business News Daily editor Chad Brooks emphasizes the importance of aesthetics in buying a company vehicle. He notes that your car represents your brand and the standards you hold your business against. This is relevant when tacking your company details to the car through a decal or another form. To this end, your company car can serve as an incredible tool for advertising as it navigates the streets.
Having an eye-catching vehicle guarantees that your business will be noticed, so you should ensure that the external appearance of your car can show your business in a good light and attract potential customers.
It’s critical to know how your business goals and vehicle options can meet halfway. Because the benefits of owning a business vehicle can be substantial, consider the above tips to ensure you can get the most out of your car purchase.
