Many business owners come to a crossroads about their vehicle when their business becomes profitable. As the owner, you may use your personal vehicle for all your business needs. However, now that your company has grown, you might wonder if investing your money in a company vehicle makes more sense.
There are five factors to keep in mind as you approach the decision to buy a car for your business. Reflect on the points below to ensure you make the right financial decision and protect your business.
1. Choosing Brand and Dealership
When it comes to choosing a brand, you are likely to have a favorite before you even start the process. However, it is important to really study the brands to determine which one has the best deal. After all, if the pricing is good, you’ll be able to choose a higher trim level at the same price as the lower trim of a more expensive rival model.
A good example of this is the Lexus brand. Known for starting prices lower, the brand usually undercuts Mercedes-Benz by as much as $10,000. This means when you head to a Camelback Road Lexus dealer instead of a rival, you are starting out with more options that will fit your budget.
The lower price will make it much easier to justify the purchase, and it keeps business prices down.
To find a reputable dealer, you can check DealerRater. It ranks every Phoenix area dealership and assigns them a rating based on these independent reviews.
2. Timing Your Purchase
Timing is one of the most significant factors in buying a car for your business. You should consider if the purchase makes sense for your needs right now and if the time of year is conducive to getting the best deal.
Have you noticed that you are using your vehicle more for business than personal needs lately? Does your business require a larger vehicle to carry your products more safely? If you have noticed these issues with your current vehicle, your business may benefit from having a company car.
Before heading to the dealership, make sure to time your purchase properly. Take advantage of sales and dealership incentives. Call around to see what deals local dealerships offer or consider buying at the end of the year when dealerships are most likely to cut prices.
2. Upfront Costs
We all may love the new car smell, but you should keep in mind that the price matters. You probably want a luxury SUV because this vehicle says something about your business.
If you want to buy used, you’ll want to focus on a certified preowned luxury vehicle. This should get you some warranty and low mileage. A Camelback Road Lexus dealer, for instance, only sells certified preowned vehicles that have undergone reconditioning after an extensive inspection has identified any little issues.
3. Maintenance
Buying a car for your business is an exciting time. There is no better feeling than driving off the car lot knowing you have made a savvy business decision.
Whether you choose a truck, sedan, or van for your business, all vehicles require maintenance to keep them working their best. It is important to note, however, that there are vehicles that require more maintenance than others. This maintenance is not always cheap.
To keep the company vehicle from interrupting your business flow, factor in the costs of maintaining the vehicle you choose. Most dealerships recommend getting vehicles inspected every 5000 miles. Luxury car brands may require even more frequent upkeep.
4. Insurance Coverage
If you are using company profits to purchase a vehicle and will be using the vehicle strictly for business, consider an auto insurance policy that protects your full investment in the car. Insurance companies design commercial policies specifically for these instances.
Making sure you have full coverage on your business vehicle may not always be cheap, but it can protect your personal assets in an accident. Commercial policies often have significant insurance limits to cover damage to the vehicle and any injuries in a car wreck.
5. Prioritizing Business Needs in Your Vehicle Purchase
Buying a car for your business may require you to consider options for a vehicle you would never consider for your everyday car. It is essential to put the business’ needs first at the dealership.
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Would an in-vehicle GPS make deliveries more efficient?
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Will you drive long distances that require good fuel economy?
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Do you need a third row or more trunk space?
Before heading to the dealership, jot down any vehicle upgrades or modifications that could make your work more enjoyable.
Final Thoughts
Investing your cash wisely for your brand now could set you up for even more growth in the years to come. Though buying a car for your business may be a big decision, it does not have to be stressful.
If you need a vehicle to keep up with your growing business, do some window shopping and some thinking. Then head to your local Lexus dealership to discuss the options you find in today’s new car inventory