Steps to follow when buying company cars
If you are looking to upgrade your company cars, there are certain steps you need to follow in order to make this a success.
And this process involves more than just applying for finance with the right documents and drafting a budget.
You will need to collaborate with the dealership in order to find the vehicle or vehicles that suit your needs.
There are several steps in the company car buying process. Use a balloon payment calculator if you own a small business to see if you can afford one, or opt into balloon refinance if you are upgrading your company vehicles. It can be a tricky process but with a few helpful tips, you will soon find the company vehicles to suit your needs.
Leasing or buying: which is better?
Before you start looking at the type of car you want to represent your business, you will need to consider whether you want to lease or buy the vehicle. If you buy the car, paying a deposit or a balloon payment will help to lower your monthly repayments and save you money in the long run.
Leasing a company car is a better option for those who might not have the money for a large loan amount. It is also convenient because all expenses are included in one amount. You also will not have to worry about selling the car at the end of the loan term, but you can ask your lender for this possibility. Look at your finances and use a loan calculator to check your affordability.
How will the car be used?
Once you have calculated your budget and decided on whether you want to lease or buy the car, you should think about how you will be using the car. For example, a fleet of branded company cars is an ideal solution for a sales company wanting to impress customers.
Knowing how the car will be used will help you to narrow down your choices. If the cars will simply be used as employee transport to and from work then you can choose a zippy little hatchback for city driving. But, if the cars will be used to carry loads such as parcels and packages, a minivan might be a better choice. Speak to your employees for ideas on what types of car will best suit your company needs.
What specifications do you want?
In today’s modern times, cars come equipped with a multitude of features such as electric windows, power steering, multiple airbags and even Bluetooth sound systems. It is important to think about the features that are most important to you and to the employees who will be using the car.
It is important to remember that a car with more features might have higher monthly instalments, as will a larger car. If you are sending your employees out on long journeys, a GPS system is a must-have feature for your company cars. However, if your employees use their cars for the commute and live close to work, this feature is simply an added luxury and not a necessity. Be sure to account for any electronics on the insurance quote you ask for, as these gadgets might have to be separately insured.
Keep it brand-related
You might not think that company cars are useful in representing your brand, but they can be highly useful at advertising your company. For example, a financial firm should opt for a luxury car brand that shows their clients that they are professional and on-brand.
If you are a quirky bakery, choose a delivery van and have it wrapped in your logo and colours. If you are allowing your employees to use vehicle finance you have provided to buy a company car, be sure that they choose one that meets your guidelines and specifications. This way, they can choose a car that meets their needs but that does not stray from the company image.
What is the competition using?
Now, a company car is highly useful for advertising your company to the public. But, it will not stand out if every other company in your industry is using the same car. This can be seen in industries such as real estate, where almost everyone uses small hatchbacks with branding.
It can be difficult to differentiate one company from another if they all use the same type or make of car. You might find that instead of choosing Mini Coopers for your company cars, Fiat 500s or even Kia Picantos are a better option. They are different and stand out against the slew of Minis. Before finalising any transactions, do some research on the top company cars to see what is popular and who you are up against.