What To Think About When Buying A Company Car

 When you are looking to buy a company car for an employee or yourself, it can be quite tricky. While you want to save money, you also need to make sure that you get a car that is reliable. You can actually spend too little money and end up with a car that you regret. Spend too much and it can take a bite out of your bottom line. 

To make sure that you get the most out of your company car, it pays to keep a few things in mind. With the right information you can make an informed decision and make sure you buy the right car that best suits your needs. 

In this article, we will go over some of the basics that you should know when you are looking to buy your first company car. 

Think about used cars

Buying a second hand car is not the risk that it used to be in years past. There was a pretty good chance that you would be buying a lemon and be stuck with a lot of problems that the previous owner passed off on to you.

These days, lots of car dealers are selling certified pre-owned vehicles which is not just a fancy way to call a used car. Certifying a car as pre-owned means that the car has been inspected and all the worn parts replaced. Usually, the car is not very old and even still has a few years and miles left on its warranty. 

You can go to just about any car dealer these days and find a used car in excellent condition that will save you loads of money. Dealers like Waxahachie used cars will allow you to peruse their inventory online so you can check out the selection before you go in. it is likely that you can find a used version of the new car you may have had your eyes on and can save some money.

Not only will you save money on the initial purchase, but it can even cost you less money on insurance since used cars are usually less expensive to insure than new ones.

What will it be used for?

The type of car that is going to be best for you and your company will be determined by the way the car will be used. If it is simply a car for you or your employee to commute to work in then you can get away with something very basic. After all, it will be sitting in a driveway and parking lot for far longer than it will be on the road. 

If it is going to be used to do site visits or for a salesperson then your needs will be a lot different and you have to choose the type wisely. Space will be an issue depending on its use.

For instance, will the commuter car also be a carpool vehicle that will be bringing multiple people to the office, or just a single person? A station wagon or large SUV is probably going to be necessary if you have four or more people sharing the car at the same time. 

A salesperson may need a larger car if they also have to be carrying around orders or samples that take up a lot of space. If they are simply on the road to talk to clients then something smaller will be enough. Take some time to think about all the possible scenarios that the driver will need the vehicle to do for them before deciding on a make and model.

Think about ongoing expenses

Not only is there a big difference in purchase price between makes and models, but the ongoing expenses vary wildly as well. It can cost far more in gas, maintenance and even depreciation for one car than it is for another. To be able to settle on the right car, you have to consider how much it is going to cost to own it. 

Every company needs to save money in every way it can while also getting the most out of their equipment and the company car is no different. Make sure to research how much ongoing maintenance will be for the car. Things like getting the oil changed and tune ups have a certain cost that can be researched.

Gas mileage is also very important as fueling up is going to be one of the biggest expenses. Keep in mind that mileage from city driving and highway is vastly different so determine what kind of driving your car is most likely to do. Then, you can choose the car with the best mileage for that type of driving. 

Insurance costs are also likely to be very high. Once again, the rates are determined by the make model and year of the car. Try to avoid cars that have high theft rates as this will have you paying more for your insurance premium every month.

Should you lease?

Since the upfront cost of getting a leased car is generally much lower than buying, many companies opt for leasing. Is this the way to go for everybody?

It isn’t a simple yes or no answer as there are other expenses to consider when leasing a car. For instance, if the commute for your employee is long or they are on the road making calls to clients then there is the possibility of going over the allotted mileage which is costly. You’ll pay per mile for every mile you go over the limit. 

Another thing to consider is that there are ongoing payments to make when you lease. At a certain point, you may not be making any further payments when you own the vehicle. However, this is unlikely as many companies will buy again once the warranty is over. If that is the case, then it does make sense to lease since you always have a new car and ongoing expenses are minimal. 

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