This content was provided on behalf of Vcars
NO ONE car is perfect for every company or business use: each individual company has different requirements depending on their size, type and location.
But there’s a number of things all employers should consider when choosing a new fleet of company cars.
Resale value
As a business owner, you’ll want to get the best value for money out of your company cars. Be mindful of the resale value of the model you choose. If the market suggests a steep depreciation in value, consider alternatives.
Reliability
As an employer it will be your responsibility to pay for any repairs to company-owned vehicles, so go for a reliable car. It’s also advisable to choose a popular car, as parts will be easier and therefore cheaper to come by, and you won’t need to shell out for specialist repair services.
Fuel efficiency
Fuel costs are a big factor when it comes to buying company cars. It may be worth spending more upfront for a vehicle that will be cheaper to run in the long-term. Do some calculations and make your choice is based upon the estimated annual expenditure on fuel. Mopeds have proven a successful and economical choice for small businesses in inner-city locations.
Used cars
It could prove cost-effective to find used cars rather than buying brand new. That way, resale value becomes less of a pertinent issue, as older vehicles depreciate in value at a lower rate.
Safety
A high Euro NCAP rating will prove cheaper when it comes to insurance, and keep your employees safe and able to work. You could also avoid costly personal injury claims in the event of an accident.
Image
Choose a design which reflects the brand image of your company.
Pick a flashy super-mini in a garish colour if you want your delivery boys to stand out in traffic. Consider a hybrid if you run an eco-friendly company and go for a sleek silver saloon for the refined and trustworthy image.
If your company cars will have decals, make sure to choose a car with enough flat space to incorporate the design.
Tax
Make sure to choose a make and model that falls into a tax bracket that is affordable for your company. Calculate the combined annual cost and factor it into your budget.
Leasing
It may be wise to lease a fleet of cars rather than buy outright. With the right deal you could end up paying less at the end of the lease, and you always have the option of buying the vehicles at the end of the lease should it prove economical.
Alternatively, to keep your company looking up to date, you can start a new lease with a new set of vehicles.
With all these factors at play, it can be hard to come to a decision that satisfies all requirements.
Above all, you are running a business, so the top priority will be to choose the vehicle that puts the least financial stress on your company. Make a shrewd judgement based on estimated costs, and whether you’re looking at new or used cars, you should make the right decision.
