When you’re running a business you need to consider it’s overall health. As your business begins to scale you may find that you need a fleet of vehicles in order for your business to run smoothly.
Investing in vehicles is a big deal for a business and you want to make sure that you are making the right decisions.
Failure to do this can result in you spending a lot of unnecessary money and this is going to be detrimental to your business. The last thing you want is to burn a lot of cash on vehicles that you don’t need or do not fit into the operation of your business.
To prevent your money from going up in smoke there are a few things that you need to do to make good decisions about vehicles for your business. Here are some tips you can use to make sure you’re making the right decisions.
Vehicle Usage
The first thing you’re going to do is make sure that you are clearly assessing vehicle usage. You need to ensure that you choose the right vehicle based on what it will be used for.
This means that you have to make a list of the services your business provides that require the use of the vehicle. You may need it for transporting goods, providing services to clients at different locations or you may just need it for employee commuting.
What you need should be the driving force behind your purchase. It should never be all about glamor and glitz, it should always be about practicality.
The Capacity and Size of the Vehicle
The capacity and size of the vehicle are other things you need to put at the forefront of your thoughts. You don’t need to buy vehicles that swallow up space in the parking lot but have very little use for your business.
You also don’t want to buy a vehicle that is so small your employees or whatever you’re carrying is squashed like a sardine can inside it. It’s a thin line and you have to look at why you need the vehicle and what you will be carrying in order to decide the capacity and size that you need.
Watch Your Money
When it comes to buying a new vehicle you have to make sure that you are not punching holes in your own pocket. Many businesses go under simply because of bad financial choices.
Buying a vehicle or a fleet of vehicles is a big decision and you have to make sure that you’re not going to be setting fire to your own bank account.
Carefully sit down and look at how much money you have and then look at what you truly need. It’s okay to start small by buying just one vehicle or two and then expand as your business grows.
Regret when it comes to spending cash from your business can be overwhelming and it can cause you nights where you toss and turn in your bed as a business owner.
Look deeply into everything you will have to pay when you do decide to buy a vehicle or two. You’re going to need to consider maintenance, insurance, and even depreciation of the vehicle. All of this should be factored into the cost.
Consider getting financing if possible. However, be careful with this as well. You don’t want to dig yourself into a hole of debt that is so deep you won’t be able to crawl out for years to come.
Used or New
One of the key things you need to decide on is whether you’re going to buy your vehicles new or used. Needless to say, getting them on the cheap is going to require that you take a used vehicle.
However, while you will be getting them for much cheaper and your bank account is less likely to choke and go to our early grave, the maintenance cost you may sustain could very well put your bank account under instead. If you’re going to buy a used vehicle you need to make sure that they are of the highest quality possible.
When you buy a spanking new vehicle you can expect ease of performance. There are very few headaches and hassles that you will have to deal with. The vehicle for the most part should be alive and kicking and ready to get to work doing whatever you need to for your business.
However, it could drain out your bank account, it’s no secret that brand-new vehicles that have never been driven can cost a lot of coins. How far are you willing to stretch your bank account? That’s the question you need to ask yourself.
Consider the Features
The features that come with the vehicle are also another key consideration when you are purchasing it. You know what your business needs and doesn’t need.
There’s no use in having all the bells and whistles if you don’t really need to use them. They’re just wasting your money and all the time you’re going to need to learn how to use them. If you’re into efficiency then get a vehicle that works that has all the features you really need at the moment.
Some features you might want to consider are our cargo space, navigation systems, and the towing capacity of the vehicle.
You also need to consider the safety of the vehicle that you are buying. Most modern vehicles will be equipped with many safety features and telematics capacities.
This is going to ensure that the driver of the vehicle is safe and it can also give you a lot of insight into the efficiency of your vehicle and its usage.
These are the benefits of fleet telematics. If you have a fleet it can help you with managing it.
Get Insured
The cost of insurance is something you need to think about in depth. Remember that the make and model of the vehicle as well as how old or new it is will directly affect the premium that you have to pay.
The more expensive your vehicle is, the more likely it is that it will catch the eye of thieves, so you will need to pay more for insurance. You need to shop around to get many different quotes before you settle on an insurance company.
The last thing you want is to be overtaxed when it comes to insurance. There’s enough you need to pay for already when it comes to acquiring your vehicles.
Anticipate the Future
A lot has been said about saving money, however, you need to seriously consider the needs of your business in the future. This is where you must have a long-term vision.
Peer into your future with some binoculars and see what you find there. Are you looking to grow your business in a way where you’re going to need a specific type of vehicle very soon?
If so, it may be worth it to go ahead and dump some cash into getting some more expensive vehicles so that when the time arrives you will be well-prepared and ready to go.
You also need to think about the long-term relevancy of the vehicles that you are selecting for your business. Remember that the automotive industry is a revolving door when it comes to technology.
There’s always something new and shiny around the corner. While it’s not every shiny object that you should jump on the bandwagon for, there will be a few that you will have to look more closely at.
Consider all of these when you are making your vehicle choice.
Consider the Resale Value
There may come a time when you want to get rid of the vehicles. When that time comes you want to fetch a hefty price for them. However, one thing you can bet on is that the vehicles would have depreciated, if they were already old when you got them the depreciation can be massive.
The inability to get top dollar can be frustrating and make it difficult for you to purchase newer vehicles. If you’re not ready to sacrifice all that cash you could bank in the future then you may want to consider digging a little deeper into your pockets and purchasing newer models of vehicles.
Consider Your Image
There’s a lot you need to consider but one thing you definitely don’t want to leave on the table is the image that the vehicle is projecting about your business.
While practicality is everything, your vehicles are like ambassadors for you especially if you are going to wrap them with your company name and logo. You have to make sure that you choose the right vehicles to project a specific image.
Unfortunately, appearances do matter to many people and some of them will be your customers. Consider if the vehicle you are selecting is ready for the catwalk of public opinion.
There’s a lot to consider when you’re buying vehicles for your business. Try not to let it overwhelm you, just focus on your main needs first and then take it from there.