A company car might seem like an extra expense, but it is better to think of it as an investment. Your employees will appreciate the convenience that it can provide. Additionally, you can use it to shuttle around important clients. With these benefits, you can likely score better contracts. But considering all the various car models out there, it can be difficult to choose the ideal one. Here are some factors you have to consider in your purchasing strategy.
The Price Tag
The biggest concern that you will have is the price tag of the vehicle. It might be tempting to go for the cheapest vehicle available. But that can be a mistake. You are buying an investment, so you will likely have to pay for high quality. You might not even consider buying a car but lease one. A lease is a more flexible choice and can allow you to trade the car after a few years for a more modern vehicle. But full ownership has its advantages. One thing to remember is that you are not buying this car as a private individual. You are purchasing for the company, and that stretches out some of your buying power.
The Image You Want To Present
Besides the price of the car, you also have to consider the image it presents to clients. There are different impressions you may want to present. For example, if you’re a construction company, you will get more results with a hardy truck as your company vehicle. It showcases your company’s focus on getting the job done. It can also help with actual work. But if you are a company that does office work more, then a fancier car would be appropriate.
The Purpose Of The Vehicle
Another thing for you to consider is the purpose of the vehicle. If you will be mainly using it to shuttle around clients from their hotel to your office or get your people to events, then a nice luxury car would be a good choice. But you might be buying one for the mass transport of your employees. An SUV would be a better choice for this circumstance. Another purpose you might have for the car is long-distance transport. For this, you’ll want to have something with good mileage.
Your vehicle would be useless if it were not running. Check out the reviews of cars and vehicles to see how well they perform. The costs of a car might be low but proper maintenance might require a high cost. Look for a car that is not so fragile. It would be best if you also considered the local repair shops. For example, if there is a place near you where the brake repair cost of a Subaru is pretty affordable and offers other repairs, then maybe a Subaru can be a good choice for your company. You might also consider the type of fuel the car uses. Electric and hybrid cars are more popular nowadays because it is so easy to fuel them.
Think About Write-Offs And Deductibles
Any business purchase can be used as a basis for a tax deduction. Since you’re buying a car for business purposes, there are several write-offs you can use. In the first year of use, you can reduce a part of the vehicle purchase from your taxes as long as you used it for business. This can continue for several years, with each deduction getting smaller. You’ll need to work with your accountant on how to file it with the tax office. You might also have tax credits if you planned to buy an electric vehicle. Look it up in your state laws.
Consider The Future
Don’t just buy for now. Think of the future when you are choosing a car. New models are great for this and last for several years. You don’t want to buy a car and see it become obsolete within the year. Ensure that it has all the modern features installed like WiFi, GPS, and more. It is not just the features either. Think about your company’s plans and whether your car fits in it. If you plan to expand, then a bigger or better car might be worth the investment.
Investing in a company car can be worth it. You have to make sure you are making the right investment. Use the tips above to ensure that you are choosing the right vehicle for your company. With the right choice, your company will have a dependable car that it can put to good use for a long time.