Top tips on how your business can save money when purchasing a business vehicle

Content provided by a guest contributor.

For most business owners, vehicles are an important aspect of their business that ensure it runs smoothly. However, running a business can be stressful and expensive making it harder for your business to purchase a vehicle even though you may need it.

But, there are ways that your business can afford a company car. If you are planning on purchasing a business car while saving money then read these helpful tips below.

Do your research

Some experts say the same concept is applied when purchasing a car for your business as when you purchase a car for yourself. The first thing you need to do is research on cars and which ones are suitable for your business.

Keep in mind that cars aren’t an investment as their value depreciates the minute the car leaves the showroom, so make sure you buy a vehicle that your business needs, and not one that’s top of the range.

While doing your research you should look at the latest motoring news and online platforms which offer car reviews. You should also browse a couple of car dealership online to see what best deal are available. This will help you see which cars are ideal for your business and why.

Remember to always make sure that you use a trusted car dealer. Once you have flagged a few deals that you’re interested in, you should go to the car dealership and view the cars in person.

Have a deposit ready

If you’re planning on getting finance for your business vehicle, paying a sizeable deposit upfront could help your business in the long run. This is because your business can receive a lower monthly instalment allowing you to settle the vehicle finance quicker. If your company recently just started up, a deposit could help your business receive financing as the lender will see how reliable you are and how well your business takes care of finances even if your business is still fairly new.

Try purchasing a second-hand vehicle

Everyone loves the feeling of purchasing a brand new vehicle. But we all know that brand new vehicles are very expensive. If you’re planning on purchasing a car and you're on a business budget then finding a suitable second-hand car is the best option for your business.

So many people are buying second-hand vehicles now because it saves plenty of money. People have also started to realise that you can purchase a good second-hand car that is in great condition and it could last your company years.

Visit an auction house

Another great way of purchasing a business vehicle on a budget is through an auction house. You can find many vehicle auctions in South Africa that would have the perfect car for your business. The great thing about a car auction is that there is a variety of vehicles to choose from. So if you are unsure of which vehicle you would like then going to an auction would be great for looking for your business car.

Cars on auction are often quite affordable making it easier for you to purchase the vehicle of your choice. Although there are a few disadvantages since the vehicle is sold as is and resale value might be lower, but if you do all the necessary research beforehand you could find yourself with a great vehicle on auction.

Trade in your old vehicle

Another way for you to save is by trading your business car. The main benefit of trading in a vehicle is that you can use the money for your new vehicle, that way you won’t need much financing. Before you go for a trade-in to make sure that all repairs have been done to the vehicle to make sure the process is smooth and fast.

Always make sure that you know the value of your business vehicle before going to the dealer. Thorough research is crucial so that you can negotiate a deal that works for you. You should also visit different car dealerships and find out how much they would offer. By doing this you can then find the dealer with the best value for money.

Take out a car lease

With a car lease agreement, your business will pay to use the car for a set amount of time. Once the contract has ended your business can decide whether they wish to sign a new lease. The advantages of leasing out a vehicle are that your business will have the latest vehicles, you won’t need to sell the vehicle, which ends up being a more affordable instalment.

 

The content in this article was provided by Rogerwilco – a South African marketing agency based in Cape Town.

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