Have you tried to purchase a vehicle for your business needs? How has your experience been? If you are like many other buyers you have probably been confused and bewildered. You’re faced with so many choices when trying to choose the right vehicle to suit your business needs, sometimes it can be a bit overwhelming! The sheer array of options can seem baffling. Whether you need one vehicle or a fleet – here’s a guide to help you narrow down your options and make the right choice for your business.
Initial Decisions
The first few decisions you need to make should be fairly straightforward. You should first asses the needs of your business, so that the vehicle you end up choosing will maximize efficiency. The most fundamental question to ask yourself is how many vehicles you actually need. Sure, more vehicles could potentially mean increased efficiency or productivity, but it would also require more initial capital outlay, as well as an increased ongoing financial commitment – so you’ll need to weigh up these opposing factors and get the balance right. In the past companies have tended to use company cars as a reward for their most valuable employees, however in a small business this is not usually the best way of using valuable resources. In buying a car for an employee, your small business will also take on all the risks of ownership such as depreciation, repairs, servicing and maintenance costs. So to make these risks worthwhile, it’s vital that the car is providing optimum added value to the business rather than representing a simple reward.
Lease or Buy?
Once you’ve decided who needs a car, you need to firm up exactly how much you’ve got to spend. Fixed costs are easiest to mange, so with this in mind it’s usually a good idea to go for a car no more than three years old – otherwise maintenance costs can increase drastically in a relatively short period of time. Leasing is also a great choice to ensure costs remain fixed as while they do require a small initial outlay the monthly cost will remain fixed during the period of the lease. This approach can also be much more tax efficient as a small business could potentially claim back 100% of the VAT paid if the vehicle is used solely for business purposes. Leasing allows the business owner to avoid being saddled with a depreciating asset, as would be the case if they purchased a car or fleet. Lease Car have a huge range of vehicles available in a range of sizes and fuel options to suit your business, and your budget.
