Vehicle ownership comes at a higher price tag than what you pay at the dealership. In fact, AAA’s latest data reveals that the average cost of owning a car per month is $797, according to a report on NerdWallet. When you purchase the right company vehicle, you can rest assured of enjoying tax benefits. Owning a business vehicle also improves your transportation and product delivery model, thus boosting your organization’s revenue and image. This is why buying a car for your business is a big financial decision that requires you to think carefully about your options. So if you’re looking to invest in a car for your company, research the auto market thoroughly and make wise decisions. Below are some options to consider when buying your first business car.
Leasing vs buying
Your first consideration when investing in a company vehicle is whether to buy or lease. Each option has its unique benefits and challenges. For instance, if you purchase a car outright, you’ll enjoy ownership rights immediately. However, you might need to take an auto loan, which you must repay even if the automobile’s value drops, especially after an accident. On the other hand, when you choose to lease, you don’t need a loan or a vast amount of money for a down payment. That’s because you only need to pay the first month’s deposit. Plus, you stand to gain tax benefits and the residual value at the end of the contract can lower the overall cost of leasing. Remember, your option will depend a lot on the nature of your business. Therefore, learn the differences between leasing and buying and choose one that suits your company’s transportation needs.
Choice of vehicle model
Choosing the perfect car for your business can be daunting. However, you can make wise decisions if you determine why you need a company vehicle. Think of how you and your employees will use the car, the type of gas mileage required, and the required space for cargo and passengers. Once you have identified your business’s driving needs, find out which car models are suitable. To get accurate automobile details, look for a credible site that allows you to compare different models. Evaluating vehicles by model, make, and price helps you identify a car that meets your company needs in terms of affordability, quality, and functionality. Automobile experts recommend choosing a car model with enough space for passenger and cargo, tech add-ons, and safety features.
Consider buying a used vehicle
Investing in a new vehicle might seem like the best option for your company, but it isn’t. New cars depreciate fast from the moment you drive off the dealership lot. Given you may have to replace vehicles after every few years, purchasing a used automobile is highly recommended. Buying a second-hand car helps you to save money which you can reinvest in the business. Used cars also guarantee low insurance rates, easy financing, and quality models at reasonable costs.
Buying a company vehicle for the first time can be tricky due to a variety of options. Nonetheless, you can make your automobile buying experience less stressful if you know what you want. Therefore, take time to decide if you should purchase or lease, invest in used or new cars, and identify a model that suits your business transportation requirements.