For those who own their own business or are in an operational position at whatever company you work for, you may have wondered if and when it would be a good time for your organization to bring on a company car. In businesses where you do a lot of traveling, or if you have employees who travel frequently, it might make sense for you to get a car that’s designated for this purpose. However, choosing the right car for your company isn’t like choosing the right car for your own personal needs. So to help ensure that you make the right decision here, here are three tips for choosing a company car.
Think About It Practically
When you’re buying your own car, the only things you need to think about are what you’re willing to spend and what features you want that car to have. Other than that, most other things will fall by the wayside. But when you’re buying a business car for your company, there are a lot of other factors to consider. According to John Brandon, a contributor to Inc.com, you’ll make the best decision for your company if you’re thinking about this choice practically. This means that you should be looking for a car that will exactly suit your business needs in all areas. For example, you’ll need a car that has the right amount of storage space, has a relatively low operating cost, and gives off the persona that your brand is trying to achieve.
Decide Whether To Lease Or Buy
Once you’ve narrowed down what type of car you’re hoping to get, you now have to decide whether you should lease this car or buy this car. While there are certain pros and cons to buying or leasing a car for personal use, these pros and cons vary slightly when you’re thinking about getting a company car. According to Ivan Widjaya, a contributor to SMBCEO.com, leasing a car can help make things simpler regarding any maintenance or upkeep that you don’t want to have to worry about taking care of on the company’s dime. However, leasing can often be more expensive if, at the end of your lease, you decide that you’d like to actually buy the vehicle. Think long and hard about which course you want to take before you make any final decisions about leasing or buying.
Consider Insurance and Insurance Rates
While you might not want to think about the possibility of your new company car getting in a car accident, this is a reality that you have to face. To prepare for this, it’s important that you have the right insurance and consider how certain vehicles will be more or less expensive for you to insure. According to Lee Pickering, a contributor to AllBusiness.com, there are quite a few factors that can contribute to how expensive a vehicle will be to insure, so make sure you factor this information in before you actually buy anything.
If you’ll soon be looking for a new company car, consider using the tips mentioned above to help you pick a good one.