Things you need to think about before buying a car for business use

If you’re a business owner and thinking about buying a company car, there are a lot of considerations that need to go into the decision. A company car can give your business a more professional image, but that doesn’t mean you shouldn’t think things through before going ahead with the purchase. This blog will help you to buy a car to use for your business the right way.

Understanding costs 

If you’re thinking about buying a company car, it’s likely that your business is performing well, but consider how much money you can spare each month to pay for things like car insurance and routine maintenance. While it’s true you may be able to deduct company car costs from your annual taxable income and make some savings that way, it’s important to think of other ways you could cut costs. It’s always worth going the extra mile to compare car insurance as well as different models to see if there’s a cheaper alternative that still meets all your needs.

Don’t rule out rentals

Sometimes a car rental may suit your needs better than a company car, especially if your company is only just getting up and running. If you know you won’t have to make many trips in your car for a while, a rental car may serve your needs better. However, keep in mind that rental car costs can start to add up quickly, so if you need a car on even a semi-regular basis, it may be worth investing in one of your own.

Think about branding

One of the benefits of having a company car is that you can also use it for advertising purposes. Consider getting your company logo and some contact information on the side of your car, allowing passersby to know exactly what it is you do. If your business revolves around your local area, this could get you a lot of business for very little extra cost.

Consider financing

If you really need a company car but are struggling to come up with the money to buy one out of pocket, you may be able to find financing deals that make it more affordable. This can also allow you to trade in your car for a newer model after a certain amount of time, which may be good for your business’s image as it will mean your car is always looking fresh and new. 

Is it a necessity

Many business owners may already have a car they use for themselves, which can double as a company car for business trips. If you have a car already, think about whether a second one is really necessary. For example, if you share a car with your partner a company car makes sense, but if you only use your car for the occasional errand you may as well make more use of it for business purposes as well.

Buying a company car is an exciting part of any business owner’s journey, just make sure it’s the right decision for you at this time.