Keeping up with your competition, giving your employees a new perk or getting some new features that will benefit your business - there are a lot of reasons why you might want to buy a new company car. So how can you make sure you find the best option to meet the needs of your business? This article will give you some tips.
Make your requirements clear
Whether you write them down yourself to refer back to or send them in an email to a colleague, it’s important to know what features you need from the vehicle you buy. To make sure you or your team can find the best options, ask yourself these questions:
- How will the vehicle be used? Whether it’s for travelling huge distances between jobs, carrying equipment from place to place or moving customers and employees about, knowing exactly how your company car will be used will help you figure out which features are non-negotiable and which are nice-to-haves.
- Who will be driving the car? Consider if the card will be driven by only one employee, be used as a pool car or be your own primary business vehicle. This will help you understand what the specific maintenance and insurance needs might be.
- How much mileage would it cover? If a car will mainly be used for city driving, then a petrol or hybrid might be most suitable. For those wracking up the miles on motorways, a diesel engine could be more appropriate.
Once you have these requirements on paper, you can start to narrow down your search and scope out the different options efficiently.
Set a realistic budget
You might have an idea in mind of how much you want to spend, but once you’ve set out the features you want from your new car and started scoping out your options, you might find that it’s not realistic to what you need. In this case, you might need to weigh up whether you can afford to buy a car outright, or whether leasing would be a better option, particularly if having a regular monthly payment is better suited to your cash flow.
Alternatively, consider whether you really need a new car or if a used option could be just as suitable. Though you might not think you get back much return on your investment with a used car, it won’t depreciate as quickly and will be more affordable to purchase outright. There may also be some short-term leasing options for those that need to reinforce their fleet for particular contracts or temporary needs.
Consider ongoing costs
Buying a car for your business won’t just mean making the upfront investment in the vehicle itself, you’ll need to build in the cost for any maintenance and insurance too. There are a lot of factors that can impact these costs, including the number of people driving the vehicle, their accident history or age and the purpose of the vehicle.
For example, if your employees are aged under 25 or if the car is going to take on high levels of mileage, then the ongoing costs will be higher. Considering these factors, looking up any insurance and maintenance costs and building them into your budget will make sure you don’t get some surprise bills further down the line.
Think about fuel economy
Another essential cost of running a company car is the cost of the fuel you need to run it. Diesel is generally more expensive than petrol per litre. However, diesel cars are traditionally considered to be more economical over long distances than petrol cars are. Looking up the average economy of the car model you’re considering and calculating how much this will cost you per week or month based on average mileage will give you an idea of how much it will cost to run.
It will also make sure you get as much for your money as possible. For example, choosing a model that offers only 30mpg when there’s another one with the same features and 40mpg will have a marked impact on your overall fuel expenditure.
Check its CO2 emissions
As the 2030 ban on selling new combustion engine cars comes ever closer and more customers become aware of their own environmental impact, it’s important to keep the CO2 impact of your new vehicle in mind. Depending on the size of your company, you might even need to report this as part of your environmental compliance obligations. Therefore choosing models that meet your needs while still having a low emissions record is key. If keeping your fleet as green as possible is a priority for you, then a newer or hybrid car should be on your list of options.
Weigh up your options
Once you’ve gathered together a few different options, pull them together to compare their features, price and ongoing costs closely. It’s also important to consider the aesthetics and add-ons that all the options offer. How the car looks will be the first impression your customers get of your business and the technology and trims the car offers will all help your employees perform their tasks more effectively, as well as keeping them safe and comfortable.
By following these steps and comparing all the options together, you’ll be certain to find the best possible option for your next company car and ensure you get the best return on your investment.
