Wednesday, July 12, 2017

Buying a Business Car? Here's What You Need to Consider

You may have thought that buying a car for your own use was tough enough. But buying a car for use with your company can be even tougher! That is, of course, unless your boss told you to buy a precise car for the company. Then that’s not tough at all.

But if you’re the business owner, then it’s all down to you. And there are a lot of things you need to keep in mind when you’re making your decision.

The budget you’ve been given

Maybe you didn’t make a budget for this purchase. Perhaps you’ve given yourself free reign to buy whatever car you please for the business. Well, that sounds pretty fun, but it’s actually not the smart way to go about this. After all, this is a business purchase. It will be counted amongst the costs of running your company, and will affect your profit margins.

So you should think carefully, and plan out a budget before you head to the car dealer. Set a maximum amount that you’re willing to spend. You may find that you can afford to get a new luxury vehicle if you work with the likes of Cars & Co new Porsche dealers. You may find a used car would be smarter. Which shouldn’t be too much of a worry: places like Pentagon-Group can get impressive used cars if you need one.

How much you’ll demand from the vehicle

Not all company vehicles are used in the same way, of course. Some businesses need to put a lot of demand on particular vehicles. If you work in construction and you need to shift things around using the vehicle, then a Skoda isn’t going to do the trick. If your business is a courier service, then you’ll need to be using the car for most of the day. So you’ll need something that can handle being used for hours at a time every day. If you run a truck fleet then you’ll need, well, trucks. Powerful ones.

This doesn’t mean that you should just buy the most powerful vehicle you can find, just in case demands change. If you’re just going to be using the car occasionally, then you don’t need to go all-out. Remember that the type of car you purchase for your company will affect the tax. And if the government thinks you’ve gone too far with the vehicle, they’ll be less willing to give you business tax breaks on it.

Vehicle security

As I implied earlier, not every business with a company car absolutely require the car to do business. But let’s say you’re a startup courier service. You might be starting with just one or two vans. The security of those vehicles become paramount to the working of your business.

It’s not just a case of making sure you have good insurance, although that is obviously a necessity. You may need to explore the security features built into the vehicle. Anything that can help you retrieve the car and catch the culprits in the event that it’s stolen would be useful. If your business is dependent on a vehicle, pay extra attention to this stuff.

No comments :

Post a Comment

Note: Only a member of this blog may post a comment.