Ask any number of business owners on the best way to use and buy a company vehicle, you’ll find various answers from all of them. This can be confusing, as you’ll need to build up your fleet of cars for a variety of businesses. There are a lot of great deals out there that can help you start your fleet off on the right path towards success. For those of you on a tight budget, you’d do well to listen to some of these tips in acquiring your first or next vehicle to the company fleet.
Financing Tips
Knowing where to look for a good deal is the first step of buying a new car for the business. Ideally, you’ll want to look for low interest rates on a financed deal. A majority of businesses will need some type of heavy-duty vehicle. The numerous amounts of companies we could list are endless. There is always some need for a good truck.
A current deal right now is for a Ram 3500, this will set you and your business for right where you need to be. It is great for stocking, storing and pulling things. Hitch something on the back and you have your own personal delivery system and hauling vehicle. Always be on the lookout for deals like this throughout the year and the end of a car’s old yearly model. It doesn’t matter if you lease, finance or buy outright; just make sure you get a good deal.
Making the Choice
If there are no deals when you’re ready to buy, then consider leasing. You will have to put up a much smaller down payment that comes with lower monthly payments compared to financing a vehicle.
It’s also much different from a business standpoint. If you need multiple vehicles at a time, buying them outright can get you strapped for cash. This can limit your ability to grow your business as your money is tied up in hard assets like a vehicle fleet.
As a company considering purchasing company vehicles, you should be aware of some type of liability insurance for your employees. Think about establishing a separate company that takes care of buying and leasing these vehicles, depending on how large your company is and the resources on hand.
Keeping Liabilities in Check
For companies on a tight budget, the last thing you want to deal with is a liability because an employee gets injured or damages one of your operating vehicles in the fleet. Insurance is going to be an extra cost to tack onto the overall price, but will save you a lot in the long term. Unexpected accidents happen and you have to be prepared for the worse. It is also a legal liability if you haven’t got your employees and vehicles covered by insurance.
These are assets to the business and should be treated as such. Spend minimally on them and don’t sacrifice cash flow, but instead look for financing deals and bargain deals.
Oliver Freeman has experience working for a fleet management company and therefore usually focuses on the auto industry when writing his articles. He is a Dad of two boys and loves spending time with them exploring in the woods on weekends.
