Taking on a business vehicle is a big step. Not only is this a milestone for your business, but it is also something that you need to think about. A business car isn’t something to skimp on, nor is it something that you need to go into with no plan.
Here are some of the best things you can do when it comes to buying a company car, and some other tips you need to follow.
Buying Vs Leasing
There is a lot to weigh up when making the decision of whether to buy or lease your company vehicle. Buying requires capital or a loan which will also put pressure on your balance sheet. Leasing is akin to renting, you pay a monthly amount for a new vehicle, but you don’t own it at the end of the lease.
If you want to be seen to punch above your weight with a top-of-the-range vehicle, then leasing is probably the more affordable route. Another advantage of leasing, at the moment in the UK, is that if you lease a low-emission electric vehicle like a Hyundai Kona Electric you can claim the total finance element of the lease fee against your annual taxable profits.
If image is not an issue and you have capital to spare, it is probably more cost-effective over the long term to buy a second-hand car. But if you’d prefer to have fixed, rather than unexpected, costs leasing with the inclusion of servicing and unexpected costs is likely to be a better bet.
Pick the Car Size Carefully
Getting too big or too small of a car is going to lead to problems with lost money, so you should make sure to get the best car size and model that you will need for your business. You might want to get a because you like the size or how it is better for the environment. However, is that car going to be useful whenever you need to make an afternoon trip to a client with a bunch of sample goods in the boot?
Think about what journeys you, your employees, and your company car will be taking together and then see what sized car will work the best for you and your needs. After all, you might need a very large car with a ton of storage space, or you could make do with just a smaller car. Just make sure that you are picking the size carefully and you will avoid the largest pitfall.
Get A Car That Represents Your Brand
Of course, aesthetics and logistics are going to be very important for your business car, but don’t be afraid to get a nice-looking car. Whether it is ferrying employees around or bringing your business directly to your clients, your company car is going to represent your brand and you need to make it look good.
If your brand has environmental credentials in any way then it would make sense to choose an electric vehicle like a new Kia EV6 because it’s not enough to say that you support environmental sustainability, your commitment to sustainable business needs to be evident in every part of your business, from packaging through to the vehicles you use.
Equally, if your brand focuses on quality or luxury that should be represented by your business vehicle. Above all your brand values need to be coherent across every part of the public face of the business.
Make Sure You Keep Fuel Economy Where It Needs To Be
Finally, you don’t want to pay a salary level of cash to your car just to keep the engine refueled. Whether you are pushing the car on the road from 9 to 5 moving passengers and cargo and people around, or you have your business car in the garage for a special occasion, you need to keep fuel economy in the back of your mind.
Before you make your final purchase of a car, you need to consider how many miles you get per gallon and what you will be paying for each gallon. Because you don’t want to figure it out by getting the gas bill for your new company car and seeing a few more figures than you expected!
Finally, Enjoy Your Business Car
No matter what you plan to use it for, the business car should be a pleasure to own and drive as well as a functional tool for your business. You’ll likely be spending a lot of time in the vehicle, so make sure that it makes you smile.