Choosing A Vehicle To Suit Your Business
No matter what kind of business we’re in, we usually end up needing a car or truck to get around, usher clients back and forth, carry gear or deliver product. In fact, a vehicle is often considered an essential part of doing business.
By Roly Crockett
Here are seven tips the small business owner should consider before selecting their business vehicle.
1: Research
Take time to ensure the business vehicle you’re considering will do its job. Research on the Internet (the majority of used vehicles are bought and sold online) or through a car guide. Develop a needs assessment. If you are considering a truck to haul or tow you may need some professional
advice to decipher the truck’s weight capacity or towing ability.
2: Fuel Consumption
Fuel consumption and mileage may be a priority. Test drive vehicles with various motor options. Do you need a bigger engine or more performance? Or, you may want to consider a hybrid vehicle.
3: Commercial Insurance
Be aware that commercial vehicle insurance will cost more than your personal car insurance. A business vehicle typically spends more time on the road increasing the liability risk. Depending on the nature of your business you may need additional insurance. Contact several companies that handle commercial coverage to compare prices and coverage. Just as you are looking for a car it’s wise to shop around.
4: Purchase or Lease – New Vehicle
The debate continues and there are lots of options, pros and cons to buying and/or leasing your vehicle. Lots of business people lease their vehicles. Leasing offers lower monthly payments allowing for better cash flow. Leasing often comes with kilometre limits so it’s important to read the fine print. Talk to your accountant for more advice on leasing vs. buying your vehicle.
5: Image
Is it important to you to drive a stylish, luxury car? If you’re shuffling clients around you might have to consider a luxury, four-door sedan. Or, if you’re to be “seen” in your car, you might want to think about an impressionable sports car. No matter what we think, what we drive forms an impression in people’s minds.
6: Used Vehicles
There are obviously more issues to consider when buying a used vehicle over a new one. It takes more time to source the vehicle and you may have to travel to find just what you’re looking for. Consider whether or not the vehicle has any warranty. Check the vehicle history for maintenance records and accidents. And, make certain there are no liens registered against the vehicle.
7: The Green Movement
A collective effort is underway to protect our environment. We’re all becoming conscious of and concerned about our environment. How would you feel driving a big SUV? Would it be a concern to your clients to see you in a luxury car? Aside from the costs involved in buying and maintaining them, will people consider this to be socially unacceptable? Many people are considering a Hybrid vehicle as an alternative. Hybrids are cleaner and easier on our environment and might be, depending on your needs assessment, just what your business requires.
Roly Crockett runs Autosource Inc and can be reached via www.autosourceexpert.ca or 905.472.9400.
2600 John Street, Unit 207, Markham, ON L3R 3W3 T: 905.475.5222 F: 905.475.6369
