Many small business owners need to purchased a company car, whether to travel to meet clients for their consultancy services, as part of a mobile business, or to carry tools and equipment. To keep costs low, entrepreneurs often choose to purchase a used vehicle, which may have contributed to record sales of used cars in 2016.
But, when you decide it's time to invest in a car for your business, where should you start and what checks should you carry out?
Practical Requirements
Before beginning your search, think about what you need from a car. Are your journeys going to be local or long-distance? Will you be carrying passengers or clients? Does the car need a large boot for equipment or goods? Should it have doors that open or slide? Answering these questions will help you to reduce your search time and also find a car that truly fits your business.
The Right Impression
Whether your budget is large or small, the image that the car portrays may be an important aspect of your decision making process. This may be the case if you regularly travel to important meetings. As such, consider age, colour and branding, as that cheap bright yellow car might not have the desired effect.
Remember Extra Costs
In any small business, cash flow is generally relatively tight. Therefore, when searching for a car, it's important to remember all of the costs involved. As well as the initial outlay, don't forget to factor in the price of car tax, insurance, service and MOT, fuel costs and general upkeep. In general, smaller cars are cheaper to run so consider all of the financial implications if you're thinking of buying a bigger model.
Background Checks
For anyone buying a second-hand car, it's always a good idea to carry out background checks on the history of the vehicle, but even more-so when you're making a business investment. This includes ruling out any outstanding finance, whether the car has previously been written off or even if it's been stolen, to avoid any nasty surprises.
Ask About Warranties
Whether you purchase directly from a manufacturer, a used car dealership or a small local company, ask about warranty before committing to the sale. As a business car, it's imperative that should anything be wrong with the vehicle, you have somewhere to turn to, otherwise it could prove to be a very expensive endeavour.
Usual Checks
In addition to the above, go through the usual checklist when buying a car. This includes taking a test drive, looking under the bonnet, examining the bodywork, and checking on the car's MOT and service history.
