Some small business owners make use of their personal car for business purposes. But there can be numerous reasons why you now need a company vehicle or two. You might need to deliver more goods or buy business items more often. Your employees might need to travel to bring in more prospective clients or have to transfer more clients to and from a destination. No matter your reasons for needing a business vehicle, it pays to do some research to avoid making costly mistakes.
Maybe you’re in the market to buy a company van, truck, or car. Before you make an investment, know about the mistakes entrepreneurs make when making a company vehicle purchase. Some of the important ones include the following.
Failure to Consider Leasing a Vehicle First
Some business owners think their best option is to buy a company vehicle. But what they fail to realize is that leasing can also be a good choice. Both options offer their own pros and cons, which makes it a must to identify these first.
Leasing a vehicle saves you from the heartache of accelerated depreciation. Vehicles depreciate since they lose their value over time. Higher mileage, gradual wear and tear, and even newly released models cause cars to depreciate.
Buying your own company vehicle gives you the freedom to use and modify it the way you want. You can take a company car loan to buy the vehicle and choose to sell it in exchange for another one. If you intend to invest in one that you have complete control over, then buying makes more sense.
Underestimating the Vehicle Usage
It is important you also consider how you intend to use the vehicle. Is it simply for delivering goods or do you also intend to use it to take clients or employees to places? Do you plan on using this as an extension of your branding or is it for private business purposes only?
Do you plan on using the vehicle within the community or will you need it to deliver goods to other businesses in another state? What will your regular journey look like? If you don’t take these things into consideration, you can end up buying a vehicle that can’t suit your needs.
Taking Optional Extras for Granted
It is advisable to prioritize the features that will help you optimize your vehicular usage. This includes choosing the right vehicle type, size, fuel economy, etc. But it also a good idea to consider the important add-ons.
For instance, you plan to use your new vehicle to carry staff or clients. It needs to be comfortable, convenient and can leave a good first impression. It is good to invest in better safety features like GPS and passenger airbags.
If your goal is to also use the car as part of your branding, you want something that can easily catch the attention of consumers. Signage and customizing it can be a great way to achieve this. The last thing you want is a car that will only easily blend in a sea of other vehicles on the road.
Another feature worth considering is a vehicle with additions like metallic paint. This may look like this is purely for cosmetic purposes only. But it could mean investing a few more dollars in exchange for a vehicle that depreciates slower and can help your brand better compete with competitors.
These are other considerations you don’t want to miss when investing in a company vehicle. Don’t simply think about the must-haves. You’re paying for the vehicle after all. You might as well invest in the right one and maximize it to your best abilities. Consider all possible options, keep in mind the essentials as well as the optional extras, and never underestimate your company vehicle usage.