Buying company cars is a significantly tougher task than purchasing a car for personal use. There is a fine line between utility and cost that you must carefully tread. Here are 7 things you might want to keep in mind to get the best out of your company car purchase.
The first consideration you must make before even searching for a new car is what it will be used for. If the purpose of your car is to cover long distances making deliveries, then your main priority should be fuel efficiency. On the other hand, you can allow yourself a little room to splash some cash if you want a car to attend meetings around the city. Focus on a few questions when you narrow down your options.
The size is always up for debate. Is bigger always better? Well, SUVs are now much more convenient and affordable. Gone are the days when proposing for an 8 passenger SUV would get an instant NO from your boss. There is a new breed of SUVs, with re-engineered engines that are perfect for company use. The advanced SUVs emit less CO2 into the atmosphere while certain tweaks have made them more fuel-efficient.
Buying a car is one of the most expensive decisions to make, even though they come in all price ranges. It is of paramount importance that you figure out costs that you or the company will be incurring for this purchase. Try to determine the overall ownership cost of the car. Use the numbers you get from research for a more accurate budget. Take suggestions from tax and insurance agents about the extra charges you will need to pay on the car. The most important thing to remember here is that you must do your research. Do not rely on estimates and rates given by a dealer.
A good car means a lot of useful value-added services. Many cars have variants with different specifications and you must do a little research to find the right model. One model might have all-wheel drive while the other might have a top-of-the-line sound system. Certain add-ons raise the price of the car significantly and you must take time to assess their need individually to make sure you are getting the most utility out of your vehicle.
Tax is a difficult issue to tackle for new cars. Write-off options are very limited but a higher write-off is allowed for heavy 8 passenger SUVs. In 2012, the federal government increased the dollar limit available for writing off business vehicle purchases. The limits went up to $11,160 for a new car and $3,160 for a pre-owned car. Trading in your old vehicle for a new one will limit the depreciation. This is because the new car will be viewed at the adjusted value of the old car plus any additional money you might have paid.
Getting a fair insurance valuation is a tricky affair. You must take into account how safe the car is, its features for safety and the amount of damage it can cause to another vehicle. In this case, cars can be deceiving. Small cars do not mean low insurance premium as hatchbacks might come with a hefty premium because of a turbo charged engine. It is important to have comprehensive insurance coverage for your car and include all parts and scraps.
Electric and hybrid cars are the new hype. Sales are increasing and popularity is rising as more people embrace the concept of fossil fuel free transportation. Buying a hybrid will cost you significantly more but there are good trade-offs. The UK government is giving incentive to catalyze adoption. You will also be getting the opportunity to promote your company as eco-friendly and caring towards the environment.
Buying a car can be quite a daunting task with all the choices and costs involved. There is usually no room for second chances and you really need to get it right the first time. Follow these tips and ensure a fun, hassle-free experience while buying your company car.