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Factors To Consider When Buying A Company Car

Factors To Consider When Buying A Company Car

The total number of commercial vehicles worldwide reached 26.4 million units in 2018, since a steady upward trend beginning in 2005. More and more businesses rely on motor vehicles for their operations. Businesses are becoming more mobile as well as more digital. 

Hence, vehicular needs are becoming just as important as cyber security needs. If you’re one of those who are looking for a vehicle for your business, you may need some guidance on what to look for. So, here are the three most important factors to consider when purchasing your first company vehicle.

Consider the Costs and Financing 

Before you could think about buying a company car, you’d first have to think about the costs. Consider how much financial strain a vehicle will put on your company. This consideration doesn’t stop at the purchase price. There are taxes, insurance fees, registration fees, fuel and maintenance costs, too.

There’s also the matter of how you finance the business vehicle. If your business does not have a good cash flow, it may be best to pay for the car by saving up. If your revenue stream is steady, however, you can take out a car loan. This is ideal since interest rates the world over have been on a downward trend since 2016. Another benefit to a car loan is that it’s also tax deductible.

Performance & Fuel Efficiency

As for the practical aspect of buying a company car, you must look at how the vehicle performs. Depending on your business, you’d be looking for specific types of vehicles. Look at the stats and features listed on the manufacturers’ websites. You can also use an efficient car comparison tool to figure out which model is best equipped for your business.

Besides that, you’d also want to take fuel economy into account. If you need to haul heavy loads over long distances, you may have no choice but to get a fuel-hungry car.  Still, aim to get a vehicle that’s as fuel-efficient as possible. This goes double if you intend to operate a whole fleet of vehicles.

Steer Clear of CO2 Emissions

Most modern cars don’t give off CO2 emissions, thanks to Bharat Stage 6 and other emission standards. However, those cars are also more expensive and have weaker engines that might not stand up to heavy use. This isn’t ideal if you intend to operate the vehicle for extended periods and have it carry large loads. You will also have to decide between low-CO2 cars with less usability and high-CO2 cars with more usability but incur a road tax.

Aesthetics and Alignment with Your Brand Image 

This factor can be considered the least important of the three, but it does still carry a lot of weight. Image and presentability are defining factors for your brand, and your company car carries your image as much as any other piece of your company. Most new models will serve well in giving you a good appearance. Still, an old model refurbished with a new aesthetic and upgraded gadgets can work just as well. 

More than a striking, impressive appearance, however, your car must also fit in with the overall visual theme of your other assets. It’s important to choose a look that is congruous with the image you’re trying to project, as consistency is vital for your brand to stand up to scrutiny. 

You’ll see that picking out a vehicle for your company is much like picking out any other piece of equipment for it. Knowing this, as well as the above factors will enable you to get a good company car with little effort.

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