Purchasing a Company Vehicle? Here’s What You Need to Consider
Posted by admin at 28 November 2022, at 06 : 36 AM
A company car is a big purchase. Not only is it a significant financial investment, but it’s also a statement about your brand. The wrong vehicle can send the wrong message to your clients and customers. So, what should you take into consideration when making such a necessary purchase? Here are a few things to think about:
Budget
This is probably the most critical question to answer before beginning your search for a company car. How much can you afford to spend? It’s essential to have a firm number in mind so that you don’t get swept up in the excitement of the purchase and end up paying more than you intended. Remember that you’ll also need to factor in insurance, fuel, and maintenance when budgeting for your new car.
The average cost of cars right now has reached $50,000. So it might be wiser to lease a car instead. Renting a car can allow you to drive a nicer car and make payments rather than one large upfront payment. Of course, you’ll still have to pay for your vehicle’s repair, but overall you won’t be spending as much money on the car itself.
Additionally, consider renting a truck if you want to purchase one. Renting an affordable long cargo truck can make a huge difference in your deliveries across the country. Additionally, it can be a great advertising tool by displaying your logo for miles around you. Moreover, since you’re renting, you don’t need to commit to anything yet, which can ultimately help you save money in the long run.
Company Brand
As mentioned before, the car you choose for your business says much about your brand. An expensive, high-end vehicle might be a good choice if you’re a luxury brand. If you’re a more down-to-earth business, something less flashy would be more appropriate. Choose a car that reflects the image you want your business to project.
Additionally, you can always opt to get your car wrapped instead. Car wrapping is a great way to display your logo and get it seen by thousands of people. Plus, wrapping your vehicle is much less expensive than buying one outright.
Driver
If you’re purchasing a car for yourself, you might not need to consider this. But if you’re buying a car for an employee, it’s essential to assess their needs. For example, if the driver is transporting clients or customers frequently, then comfort and space might be more important than fuel efficiency and emissions. But, on the other hand, if they’ll primarily be using the car for sales calls or meetings, then a hybrid or electric vehicle would be ideal since they’ll be doing a lot of stop-and-go driving in city traffic.
Moreover, you need to consider their salary. The average salary of a personal driver is around $40,000. So you should consider that cost when purchasing a company vehicle.
Maintenance
You should also consider the cost of maintenance when purchasing a company car. Cars break down and need repairs from time to time. And if you’re responsible for your employee’s vehicle, you’ll also be responsible for fixing it. So, choose something reliable and easy to maintain on your own or with the help of a mechanic.
Look at reviews before buying and talk to other companies that have the same car model. Find out what kind of maintenance work they’ve had to do, how expensive it was, and how often they needed to make repairs. Use this information to help guide your decision in the right direction.
These are just a few considerations when purchasing a company car. Additionally, consider the average costs of these three common maintenance fixes:
Oil Change
An oil change is one of the most common maintenance fixes that vehicles have to go through. It’s also one of the cheapest. The average cost of an oil change is around $35 to $75. You might want to add another $20 to $40 for replacing the oil filter as well.
Tire Change
If a flat tire is not fixed immediately, it can lead to severe damage and decreased fuel efficiency. On average, tire changes cost around $100. However, this price might vary depending on whether you’re changing one or all four tires and if you’d like new rims.
Battery Replacement
A car battery is like the heart of your vehicle. Without a sound, working battery, you’ll end up stranded somewhere on the side of the road. Unfortunately, replacing a lousy battery typically costs around $120 to $200, but it can be more expensive if you choose an OEM.
So, on average, expect to spend around $200 to $300 annually on these common vehicle fixes.
Purchasing a company car is a big decision, but it doesn’t have to be overwhelming. Considering the budget, brand image, and who will drive the car, you can narrow down your options and ultimately choose the best vehicle for your business needs. This can lead to a much more informed decision when purchasing your next company car.