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In some businesses, a vehicle is an important asset. If you buy the wrong one, it could jeopardize your business’s success, or make it impossible to operate. Whether you are planning to start a grocery delivery service or transport freight inter-state, here is a guide to the vehicles you need.
Do You Need a Vehicle?
First, decide whether you can manage without a vehicle. In some instances, it is more cost effective to use public transport. For example, if you work in the city, catching the train or a town car might work out cheaper than car ownership. However, if you plan on visiting clients, it won’t look good to show up in an Uber.
Company cars are assets. Purchasing a fleet of cars for a business is not something to take lightly. If your sales team cover a lot of miles, look for a vehicle that can handle the mileage and is economical to run. Hybrid cars are a good choice, as they are better for the environment than diesel vehicles and cheaper to run than petrol models.
Look at leasing deals and compare the costs to buying a fleet of vehicles. The advantage of leasing company cars is that your maintenance costs are included in the price. You are also free to upgrade the vehicles at the end of the agreement. The disadvantage is that lease agreements are a rolling cost – you never actually own the vehicle. Remember that lease costs are a business expense rather than a fixed asset that depreciates on the balance sheet, so talk to your accountant about the pros and cons from a financial perspective.
There are many instances where a prestige vehicle will set your business apart from its competitors. If you want to attract attention, invest in a prestige vehicle such as a Porsche. People will look twice when you turn up for client meetings and it immediately marks you out as an entrepreneur with big ambitions. However, consider the extra costs of running a less economical vehicle and make sure these don’t tip the balance in the wrong direction.
You can’t move plant and machinery in the boot of a Toyota Prius. If your business uses machinery, tools or similar, you need a van, truck, or similar commercial vehicle. Decide how much room you need and what type of work your commercial vehicles will be expected to do, and then look at different options.
Compare load spaces and fuel economy to get a better idea of which vehicle will best suit your business.
Some businesses need specialty vehicles. For instance, Satellite Trucks build vacuum trucks for the portable restroom industry. This is a niche business, but if you want to work with portable restrooms, you need a truck that can handle the workload.
The more specialized your business, the more important it is to work with a company that can supply vehicles to meet your exact specification. Shop around for the best service and prices.
Don’t rush into buying or leasing vehicles before you have compared prices, specifications, and performance data. Make a rash decision and it could jeopardize your cash flow.