When your business requires you or an employee to do a lot of driving, you have a number of options. You can either drive your own car or have your employees use their cars and then reimburse them for expenses. A better way might be to have a company car that can be used to conduct business. Following are a few tips on how to choose a company car for your business.
Don’t Rush Your Decision
If you decide that you need a company car for your business, you shouldn’t rush into a purchase. Instead, you should take your time and study your alternatives before making a decision. There are a lot of factors that need to be addressed before choosing your company car. Sit down and make a list of the features that your company car needs and another list of perks that aren’t really necessary, but would be nice to have--if the price is right.
It Must Fit Your Needs
One of the most important aspects of choosing a company car is that it must fit your needs. If you have salespeople running a route, they’ll need room for sample products. If they’re selling large items, then a compact car won’t be big enough. However, if the product sample will fit inside a briefcase, then a minivan is overkill. Businesses that use company cars for deliveries, such as pizza places, don’t need a lot of room and should take advantage of the superior fuel mileage offered by smaller vehicles. The use the vehicle will be put to should help determine the type of company car you choose.
Cost Efficiency Is Important
A company car is an asset, just like anything else used in your business, including the tools that are used to produce your product or the computers in your office. That means they should be cost effective and not purchased simply because they’re fast or you like how they look. While a company car is a legitimate expense, it should also be expected to produce income for the business. Its operational costs shouldn’t be out of line with the benefit it provides. Simply put, a company car should ultimately help pay for itself.
Resale Value Should Be Considered
When you’re choosing a company car, you should consider what the resale value of that car will be when it comes time to replace it. Some cars hold their value well, while others depreciate in value very quickly. Even if you have to pay more up front, a car that retains its value over an extend period of time will be more cost effective than a cheaper car that isn’t worth much when you try to sell it.
Do You Need a Fleet?
If your business is growing and you’re considering purchasing a company car for more than one employee, you may want to look into getting fleet prices from automobile dealers. Just like any other commodity, if you buy in volume, you’ll more than likely qualify for reduced rates per unit. Translated into company cars, that means if you buy more than one at a time from the same dealer, you’ll undoubtedly get a very good price.
Shop for the Best Price
You’re a business person, so you know the value of shopping around for the best price. It really doesn’t matter what you’re shopping for, if you take the time to compare price quotes from various places, you’ll be sure to have one place or another offer you a better rate than everyone else. When shopping for a company car, make sure the dealer knows that if you’re satisfied with the price, and the follow up service, you could very well be a return customer for years to come.
Be a Repeat Customer
Most automobile dealers will be willing to provide business owners with a good price for one express purpose--repeat business. Visit a number of dealers and let them know that you’re in the market for a company car or a fleet of them. Tell them what the vehicles will be used for, and ask for recommendations concerning the type of vehicle and any special accessories that may be needed for your particular business. Tell the dealer that you’re shopping for the best price you can get and will be visiting other dealers, and if they can give you a good price, you may be willing to buy from them again and again. Because the auto sales business is extremely competitive, most dealers will try to accommodate you.
Guest post from Cameron Gray. Cameron writes for AutoInsuranceQuotes.org.