54% of small business owners need to use their personal vehicles to run business errands, according to a recent Manta survey. If your business operations require a significant amount of driving, perhaps it is time to source a company vehicle. It will streamline your company’s logistics, and your employees will be excited to use it, thereby increasing business output. Besides, a well-branded company car portrays success and seriousness in the eyes of customers and competition. However, buying a car before you actually need it could potentially drain your small company.
Is it time to buy a business car?
Before deciding to buy your first business vehicle, there is a series of questions you need to ask yourself. Do you drive your car more for business than for personal reasons? Is your private vehicle spacious enough to deliver goods and carry equipment efficiently? Also, it is wise to weigh in the recurrent costs associated with owning a business car such that it won’t drain your small business of money that would otherwise go towards growth and expansion. These include maintenance costs, fuel and insurance. If you are short on cash, consider leasing a car, as it will require less money. During the actual buying or leasing process, use Consumer Reports and manufacturer sites to review vehicles on performance, safety, efficiency, and other vital factors. This will allow you to make an informed decision about your vehicle that you will not regret later.
Timing your purchase
When it comes to the actual buying process, the idea is to get a car that works best for your business while saving as much as you can. This greatly depends on how the economy is performing and the time of the year. During tough economic periods, dealerships tend to lower their prices and offer attractive loan options. Similarly, months and climatic seasons influence the price tags of specific vehicles. If, for example, you want to acquire a 4-wheel-drive truck, be keen to buy it during summer when the demand is lower. Also, mark when dealers are hurrying to clear their stock in readiness for new models. Additionally, some dealerships have quarterly goals, and are often committed to hitting their quantity targets before the end of every quarter. Check regularly to see if such companies are lowering prices. Using these timing tips can potentially save your business a lot of cash.
Buying a business car is a huge step that should be approached with a lot of care. With the internet today, shopping and closing deals have never been more straightforward. You can conduct your research and buy online without much effort. If you’re tight on finances but still need a business car, consider converting your personal vehicle to a business vehicle. This will allow you to channel the little you have to other beneficial business expansions.