Buying a company vehicle isn’t very different from buying a personal vehicle. You want something safe, efficient, and affordable. However, the functions and uses of a company vehicle are going to vary to some degree. Knowing the new priorities when you buy a company vehicle helps you make an effective decision for your business.
5 Priorities to Consider With a Company Vehicle
There can be many things to consider, but Business.com lists several that take precedence over the others.
- Used or New: New vehicles might seem like a no-brainer, but you can also wind up with serious depreciation in the first year or so. Used vehicles can still be great deals with a lot of miles left, although you might not have options you can add.
- Maintenance Concerns: Some brands of vehicles can be worked in any garage with truck parts readily available. Others are so distinct that your only choice is brand-specific dealerships and service centers. Know what you’re getting into.
- Insurance Costs: Standard business insurance isn’t likely to apply to company vehicles. They’ll either need add-on coverage or their own vehicle insurance. Some vehicles will be cheaper to insure than others.
- Remember the Purpose: If you’re just getting a company for one employee to get from meeting to meeting, then a coupe or sedan might work. If you need to deliver packages to clients, then a van, SUV, or truck might be a better move.
- Get the Right Size: While visual aesthetics can be crucially important, also consider who or what might be riding in your company vehicle. If it’s going to be you and three other sales reps on the highway after a long expo, make sure there is enough legroom for exhausted professionals on the way home.
Buy From Anywhere
When you are assembling a fleet of company vehicles, you will ideally have all of them match. It’s crucial to keep your branding and image consistent, but it also means your employees will be familiar with every vehicle since they are mostly the same.
There are two ways you can accomplish consistency in your company vehicle fleet. First, you can buy the same make and model over and over by looking nationally for availability and good deals. Car shipping means you can have cars, trucks, and SUVs brought to you wherever you are. If you are looking for car shipping companies in Maryland or other US states, simply consider the following aspects.
- Do you need your vehicle to be enclosed and protected, or is an open trailer transport good enough?
- Does the company have good reviews online?
- Does the company have adequate insurance coverage?
This link from a1autotransport.com is one of the reputable company has many benefits and discounts based on your needs. So be sure to explore all of your options.
Making It Worth It
A business that has company vehicles, even if just one, projects an air of prestige that competitors might not. It implies to people that a business is busy enough to justify a vehicle or fleet and that there is actually enough money rolling through to afford such an investment.
There can be serious tax benefits from doing it, too. Mileage is a huge deductible, and there are plenty of related expenses that can minimize a company’s tax obligations so they keep more of the revenue coming in.
Having said that, buying a company car doesn’t always make the most sense. Because of the potential for depreciation, there are going to be instances where leasing a vehicle actually makes more sense in terms of tax breaks and obligations.
One tremendous perk is if you work for yourself or a company you own. Using a company vehicle instead of a personal one can save you money if you get involved in an accident. Company vehicle insurance rates wouldn’t go up quite as your personal insurance rates would.
Just make sure that you buy a company vehicle that you can not only afford but afford to keep well-maintained and properly fueled for consistent operations.
Keep the Environment in Mind
Even if going green isn’t a big thing in your personal life, you need to remember that it is a huge deal for many consumers. Look for vehicles that are electric, hybrid, or at least very fuel-efficient. Many consumers emphasize doing business with companies that are trying to minimize carbon emissions, and company vehicles are a big part of that.