When your business needs to purchase one or more vehicles for its daily operations, choosing the right type of car makes a big difference. Although the cost of a car may seem like a fairly basic cost, the Mobile Workforce Benchmark Report estimates that owning and operating a company vehicle costs about $11K on average. This doesn’t mean that you should hire or rent a vehicle instead of buying, but it’s essential to make the right choice in order to optimize its value. There are a few considerations that can guide you to the optimal vehicle.
Check the Size
There are a few reasons why you might choose a certain type of vehicle. Typically, they’re used for individual employees to travel or for making deliveries. Sometimes, the function is both although this is less common. When using a car for hauling a heavy load or making deliveries, the capacity makes a huge difference. Before purchasing a vehicle, be sure to calculate the weight that it can handle, crew size to carry, and the fuel efficiency. If the vehicle will be used for lighter deliveries such as bakeries or even florist shops, you may not need a heavy-duty truck. Vans are a great option but review the size as it can vary from 135-550 cubic feet. Check the maneuverability as driving the car in a city or crowded area may be essential for business.
Review Usage Needs
If the vehicle is going to be used for transportation services or employees to travel, it should be stylish but also last through long drives. Decide on whether it’s going to be more cost-efficient to purchase a vehicle or whether it’s best to rent a car as needed. Use the estimated cost of $11K a year to guide your decision. It’s also a good idea to find out how often the vehicle will get used to see if the expense is worth it. A car that’s not used will also run into problems. For example, the fuel will start to break down over time if it’s parked for a long time. This is why if you don’t use your car for a few months, make sure to double-check if the fuel and fuel pump are still okay.
Focus on Resale Value
A vehicle that’s used by the company will eventually need to be replaced. Many companies will use the vehicle until it starts to age significantly, and then re-sell the car to purchase a newer vehicle. Business owners should use a practical approach if this is their goal. Does the car age well and maintain its value over time? All cars are going to lose some of their value but may maintain good value if they are a more desirable model with good features. It’s worth paying a little more initially for the vehicle if its resale value will be improved as well.
Also Read: Running a Fleet of Vehicles? 6 Easy Ways to Save on Fleet Cost
Finally, keep in mind that work-use vehicles are going to see greater wear and tear than most personal vehicles. They can add value to a company though, especially when their use and functionality is considered carefully. Use this guide to review which type of vehicle would suit your company best.
How To Choose The Right Vehicle For Your Business