AAA reveals that as of 2020, the average cost of ownership for vehicles driven 15,000 miles was about $9,561 per year, or $797 every month, according to data on NerdWallet. Every business owner gets to a point where they must acquire cars for product deliveries, transportation of sales teams, or passengers for hire. However, selecting a company vehicle can be daunting. As a business owner, you must determine if acquiring a company vehicle is a worthwhile investment, and then decide if you should lease or buy a car. To ensure you make informed decisions, below are key considerations when choosing a business car.
Driving needs
Before making a purchase, determine why you need a company vehicle. Depending on the nature of your business, you may need a car to transport sales teams who travel regularly. You might also need a business vehicle to improve product delivery or bring supplies to the job site. When you understand your company’s driving needs, choosing the right car becomes easy. That’s because you can narrow down your automobile options based on affordability, dependability, fuel efficiency, space, hauling capabilities, size, and comfort.
Type of car model and make
Once you’ve identified your driving needs, research the automobile market to understand the difference between car prices and performance. This step entails comparing car models and make based on pricing, mileage, and dependability. As a general rule, don’t rely solely on expert reviews. To ensure you’re selecting an ideal vehicle for your business, read customer feedback to get clear insights about a vehicle’s functionality.
Should you buy or lease?
Your ultimate goal as a business owner is to invest in the right car without harming the company’s finances. With this in mind, decide if you’ll be leasing or buying a vehicle outright. Typically, purchasing a new or second-hand car guarantees ownership rights and low insurance premium rates. However, you need a huge sum of cash for deposit and monthly payments if you opt for an auto loan. On the other hand, leasing offers tax benefits and requires little to no money for a down payment. But when you lease a car, you don’t enjoy ownership rights immediately. So, weigh both options carefully and then pick one that suits your business.
Selecting an automobile for any business can be challenging. Aside from affordability, you must think about functionality and the message your car will convey. Luckily, you can make the right choices if you determine your driving needs. Also, identify the suitable car model for your business and then decide whether to buy or lease.
