Buying a company car is one of the first large investments small and start-up businesses will make. It is important to weigh up the different options available to make sure you purchase a car that suits the budget of your businesses, in addition to making a good impression to clients and business partners.
Buying options:
Car dealers provide multiple channels that you can use to purchase a car, helping to cater for different customers’ needs. The main options people consider are financing the car or paying it off in one lump sum.
Financing a car is a good option for businesses that operate on a monthly revenue model. A finance plan allows you to pay for the car in monthly instalments that line up with the income of your business.
However, the convenience of a financing plan comes with its downsides; financing a car will cost you more overall due to the interest rate that is attached to the plan. This option is best suited to businesses with a monthly income model that are looking to purchase a more expensive car, as the risk of paying a lump sum and then future custom drying up is not as much of a factor.
There are also scenarios where paying cash for the car is recommended. If you decide to buy a cheaper company vehicle that your budget can cover, paying for the car in full will allow you to avoid the interest rates attached to financing options and be a cheaper option in the long run.
New car or used car?
Deciding whether to buy a new or used car comes down to personal preference and whether your budget can cover the higher cost of a brand-new vehicle.
If your business is well established with future profit forecasts that imply you can spend more on a vehicle, then buying a brand-new car can convey the image of business success and sophistication to any clients or business partners you use the car to travel to.
However, there is an extensive range of used cars that can give a great first impression. With a modern, appropriately coloured vehicle, you can establish your businesses presence at important meetings and meets.
One factor that you will face when buying a used car for your business is finding one that has been well looked after and will not fail or be costly in repairs. You should choose a car with relatively low milage for a used car, within the range of 5000-45,000m. Cars with over 60,000-100,000m on the clock are notoriously more prone to needing repairs and maintenance, meaning the overall cost of the car will soon exceed the initial outlay.
What style of car is best for business?
Buying a car that can get you from A to B is important, but first impressions count, and they are just as important when choosing your company car. Often your vehicle of choice will be the first indication of what you and your company are about; arriving to an important business deal in a hot hatch may not give the impression you were hoping for. Choosing the right style and colour of your company car is a key decision to make.
When deciding the style of car for your business, some of the best options are saloon or sedan cars. This style of car will give a sophisticated impression and is practical for carrying passengers and any luggage you are doing business miles with.
The most common car colours for company cars are black and dark greys. These colours are proven to give a professional and sleek look.
Opting for a white car is also a good option, gloss white is an increasingly popular colour for modern cars. However, white cars need to be cleaned more frequently to keep them looking in top condition. No matter the colour of your company car, it is crucial to keep the car clean when in use. If you opt for a white car for your business, you should consider the extra time or money it will take to keep it clean.
