Published on May 18th, 2016 | by Howard Bell0
Top Tips For Buying Your First Company Vehicle
The issue of commuting is one that every company must face sooner or later. There are many debates of reimbursements for travel expenses versus buying a company car, and when everything is considered, the results are usually in favor of the latter. Because of this, buying a company car is probably the only choice that a reasonable business owner or manager can make.
So, for those facing this big business decision here are some things that they need to know.
Long Versus Short Term
First of all, buying a company car is a huge one-time investment that will in time most probably pay off. However, some smaller businesses and startups operate on such a tight budget that they simply cannot afford it. For them, buying a car may not seem as a valid option even though not having to pay for travel expenses can in time alone cover the price. Because of that, your safest choice would be to apply for a credit in a bank. This way, you will return this credit through monthly payments, with the money you would use for travel expenses either way. The only thing your budget will feel in this way will be a huge relief.
Getting a company car will also bring you a lot of additional benefits like having more control over your company’s commuting system and organization. No one is getting accused here, but if your employees are ever going to try and steal from you, there is a great chance that they will start with travel expenses reimbursements. If you get a company car and strict driving policy, odometer will tell you all you need to know. In this way, you can be completely assured that you are not paying more than you are supposed to for gas.
Building Up Your Credit Rating
It is quite possible that you took several smaller loans from the bank, but for a company car you will need a bit greater amount. Now, it is highly unlikely that any bank (at least a respectable one) will agree to issue such a loan if you don’t already have a strong credit rating with them. Because of this, you need to plan ahead at least a year or two. Apply for several smaller loans and make sure to pay them back in time. In this way, when you ask for this larger credit, bank will have no reason (and no intention) to refuse you.
Getting a Bonded Title
Since your vehicle will be used by different employees in your company, some additional security measures are always well advised. In terms of paperwork, consider getting a bonded title. You will probably need one either way if you are missing any of the regular paperwork, such as bill of sales or the title that will confirm your ownership. But even if all of your paperwork is in order – as a measure of precaution, consider getting that bonded title. The procedure is quite simple actually, and with that document you can register, sell, or claim your vehicle in case someone steals it.
Getting the Right Vehicle
As always, when buying something, you need to make sure that you buy quality, but you also cannot allow to deplete your budget or in debt your company beyond your possibilities for the sake of this vehicle. Moreover, although you want to impress your clients and potential partners, showing off is not your primary concern here. What you need is something elegant and efficient yet practical at the same time, so choose wisely and have all of these requirements always in mind.
As you can see, buying a company vehicle is in not a simple task, but there is nothing simple about running a business either. This means that sometimes, you will have to make difficult choices that will keep you afloat. One of the first such decisions you are likely to encounter is getting a company car. Because of this, the way you act in that situation may very well foreshadow the entire future of your business.