Buying a car for business purpose needs careful consideration even for those business owners who are looking to buy just few cars for themselves or their employees. Of course, large corporations spend lot of time and effort in selecting fleet cars by inviting RFPs from multiple vendors and negotiating for months. Small business owners do not need to go to this length, but they still need to consider number of important factors when considering the business car purchase.
There are a number of important questions you need to answer that will have significant impact on the type of car you will buy and the amount of money you will spend. Who will be driving the car? What is the main of use of the car? What kind of image the car will convey when your customers see you or your employees driving that car? How much money should you spend? Should you buy or lease the car? Each of these questions will have an impact on your decision and final outcome. Let’s explore these factors in greater detail.
Purpose
The two main criteria for determining the model of your company car are its purpose and the person who will be driving the car. If the car is provided as a perk to an employee, then you will be inclined to take driver’s taste and preference into account. If you are buying the car for a specific purpose in the business, that will be the deciding factor in selecting the car. For example, if you are going to use the car to haul large loads every day, a tiny hatchback will not do the trick. On the other hand, if you are going drive the car for large distance every day to visit your customer you want to look into a fuel efficient car.
Image
The type of car you drive to your client sites will say a lot about you and your business. It will create positive or negative image of your business, which can hurt or help the future contracts or sales. For instance, if you are operating an eco-friendly organic vegetable delivery service, an electric car probably makes more sense to buy instead of large van. At the same time, someone who wants to convey the image of a successful businessman, who has made it big and can help clients become equally successful he does not want to show up for business meetings in a dilapidated car that can stop on the highway anytime. Choosing the right type of car will make a big impact on your business image.
Money
Buying a car is a significant investment for any business. Depending on the amount of money you have available and are willing to spend you should look into various options such as economy vs. Luxury car or buying vs. Leasing. If you are not going to need the vehicle on a regular basis and will not be driving it as much, leasing is probably good option for you. You will save considerable amount in upfront investment and can write off the lease payments as expense for tax purpose. Leasing also allows you to drive a better price luxury car because it will not cost you arm and leg upfront. There are number of leasing companies, such as, Hitachi Capital Vehicle Solutions that can work with you to create a right leasing option that fits your business needs.
As you can see number of factors determine which car you should get for business purpose. Only after looking at it from all angles you can make informed decision.
What other factors would you consider?
