What to consider when buying a car for your business
The moment you drive your brand new vehicle off the car dealership, the value can drop between 15-30 per cent, according to the RMI. If you are considering buying a car for your business, it is important to understand that it is entirely different from buying for your personal use. This is most important when dealing with the VAT, as it is only available for business use. In addition, we must weigh other factors like expenses on gas and time spent commuting versus using a company car. Here’s what to consider when buying a car for your business.
First impressions matter
A business runs on personal communication as much as it does on money, and if you want to be successful, how you approach clients with your services will give you the best impression. This entails everything from your team’s aesthetics to your business vehicle. Look for a vehicle that is compatible with your brand or with the image your company wants to portray. Since it is also a useful marketing strategy, you may gain more clients with this advertisement on wheels.
Decide on valuable space
Check your daily transport records of the goods and the number of people you need to transport. A house remodeling business might need an SUV to carry the whole crew and some of their tools. A car, however, is enough to transport consultants for a consultancy business. Perhaps you may need a van that covers all the tasks for your business.
Review the policy
Your vehicle’s motor must be properly insured. Some policies differ in the level of protection when you are using your car for business than for personal use. Typically, three business car insurance categories include the owner’s use for business, use for all company drivers, and commercial travelling. Explore the different levels of coverage and choose the most option that fits your business needs. As you scale your business, your transportation needs also change. Take note, however, that only actual business use of the car is considered a business expense deductible whether it is under the business name or the employee’s name.
Check for extra add-ons
There are a few extras that you might need for added safety features. One would be the addition of satellite navigation if the vehicle needs to go on long travels so you can monitor its whereabouts. However, GPS may drain your car’s battery faster so see if you need one. If your business car regularly carries employees, consider adding passenger airbags.
These basic pointers will help you trim down your options into the best choice fit for your business. Seeking the advice of big business owners may also give you insights for other aspects like fuel economy. Weigh your options along with the pros and cons, along with the total cost in long-term savings, and you will achieve the best choice in vehicles for your business.