Making a car purchase is not easy, especially when it is not for personal use but for business purposes. It is indeed an exciting moment when your business reaches the point that it can sustain its vehicle purchase. However, there are a variety of facts which you need to consider. If you are a business owner looking into purchasing a car for your business, this blog is definitely for you.
Before making any purchase, make sure you’ve thought about whether your business needs a vehicle or not. Will it be an asset or a liability? Keep remind that desire is not the clone we wish to have. Not just because your business can afford it doesn’t mean you have to buy it. Think carefully about what you do. Will the business function without a car or vehicle? If it won’t, then you obviously need it. Here are a few types of businesses that need vehicles most:
- Transportation Services (Taxi, Grab, Uber, etc.)
- Delivery Services (Do you deliver goods to your customers?)
- Catering Services
- Event Organizing Services
- Sales Travel (Do you need it as a company car for your staff?)
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Since it is a business car, you have to consider all the costs. The value of having a car provided by the company isn’t nominal at all. It is a huge barrier for some small business owners. Here are some of the cost details you need to know of when buying a business vehicle:
**Buying VS Leasing
Do you prefer purchasing a new or used vehicle? Or would you maybe like just to lease one? Should you decide to buy a new car, you may need a loan. This is also something to keep in mind, as you will have to continuously pay for it even when the vehicle’s value depreciates.
Look into what type of business vehicle insurance you would need. This would include but are not limited to, liability, physical damage, and comprehensive coverage. They will be under a commercial auto policy covering cars, trucks, trailers, vans, and other vehicles used on public roads.
**Type of Business Car
Do you have a specific type of car in mind that would suit your business the most? With such a wide range of scopes and sizes, you’ll surely need quite some time to decide. It is also very important to look into the availability of your chosen build/model. Take note that there are cars that can only be purchased overseas which will require shipping. In this case, the car shipping cost should also be the main consideration.
**Modifications / Customization
Are you planning to use the vehicle to help improve your business branding and name recognition? Plan and look into the cost of having your car modified or customized. Will you need custom paint for your brand name or logo? Or perhaps you need to renovate the interior to suit the company car’s use better?
A business vehicle is indeed an asset, especially if it helps in keeping your business operations running. Just remember to think carefully before any purchase. The ROI should be worth the cost of the car. Hopefully, this blog has helped you figure that out and has provided you with valuable insights for your purchase.
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