Having a business car has many perks. Beyond the convenience in transportation and the opportunity to make a positive impression to prospective clients, it also has tax advantages. For example, if you get into an auto accident, your rates won’t be affected as much as they otherwise would be.
With that said, many things can go wrong when buying a car, especially for company purposes. Whether it’s the need to anticipate your business’ actions or underestimating how much use it may get, securing a vehicle can be a daunting and tricky task, and any mishap or oversight can have long-term consequences. So to ensure that you get what your entrepreneurial venture requires, we’ve listed some mistakes you need to avoid when purchasing a company car.
1. Not considering the size
Aesthetic appeal and brand may impress and make a statement with your ambitions as an entrepreneur, but it won’t do much when in traffic and shuttling employees with a trunk-load of sample products for clients. For this reason, you must carefully consider the journeys that the company car is likely to take and evaluate the space that you may need. It may not sound like a big deal, but a little time of introspection will make a difference.
2. Forgetting about insurance
You must always insure your business vehicle. After all, general policies are usually not enough to get you the kind of coverage you’ll need for an automobile used for work. It may be tempting to skimp on it, considering the significant disparities between standard rates and business-level insurance. Still, the risks associated with an invalidated policy should never be ignored.
The good news is that it’s easy to get a car insured in this day and age. Like policies for a general contractor, for example, you can get your coverage online in minutes. Therefore, you must allow yourself the opportunity to explore different coverages and secure one that is most appropriate for what you require.
3. Overlooking fuel economy
It’s easy to justify getting an expensive sports car as a personal vehicle. However, it’s hard for a business to budget on a big block engine. As such, it makes sense to consider the fuel economy of the model you plan to purchase before making any financial commitments. In this way, you’ll keep yourself from spending too much money on fuel.
If you don’t go to a physical work address you may still get certain things sent to you in the post like parcels, contracts and other important information. If you are travelling a lot you won’t want everything sent to your house. So in this case you could look to get office address services where you can have mail directed to a specific place where they are collected and then sent to you at a later date.
4. Not staying true to its intended purpose
Throughout the entirety of the car-buying process, you must remain committed to its intended purpose. When checking for prospective models, there’s a good chance that many different options will greet you. By sticking to the guidelines of what you need, you’ll narrow your choices down and choose one that the business will benefit from. And don’t forget to use a vin checker.
Conclusion
There’s no denying the advantages that company cars yield. However, if you want to maximize its benefits, you must avoid the pitfalls and traps of shopping for a vehicle. By steering clear of the above mentioned mistakes, you will not only keep yourself from spending more than you can afford. But you’ll be able to secure the suitable automobile that will fit your operational requirements.
Image by Hands off my tags! Michael Gaida from Pixabay
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