Whether you need one vehicle for your business or several, buying company cars can be a nerve-wracking experience. You want to make sure you get quality vehicles that are also insurable at a reasonable rate, and then you need to maintain them so they last a long time in your fleet. Here are some tips that can make your company car purchases more affordable.
New or Used? Most of the time, a used car will be the best option. If you are running a very profitable business and can afford a brand new car, go for it. But even for individuals, a used car is generally the best option due to the depreciation of value that happens so quickly with cars. You tend to owe more than the car is worth as soon as you leave the lot. The trick with used vehicles is finding a quality car. Sometimes the best way to do this is to buy used rental vehicles from a reputable rental company like Hertz Car Sales. These cars tend to only be a couple of years old and have excellent maintenance records that are carefully documented by the company. You can often get a great deal since they have higher than average miles for their age.
Insurance. To lower insurance cost, focus on four-door sedans or other economy cars as much as possible. They tend to be cheaper to insure. Please do yourself a favor and get commercial car insurance for company cars. Yes, I know it may seem tempting and cheaper to sneak a commercial car or two onto your personal auto policy, but the headache that ensues when there is an accident isn’t worth the small amount you save. Claims can be denied if you misrepresent the use of a car, and policies can be cancelled if a company discovers your ruse. Don’t put your personal vehicle coverage at risk. In addition, it’s always a good idea to keep your business expenses and personal expenses separate.
Gas Mileage. Most company cars are driven quite a lot. Spending a little up front to get a hybrid, electric, or high miles-per-gallon vehicle can really pay off in a company vehicle fleet. In addition, this will allow you to show that your company cares about the environment and positions you as forward-thinking, which is a win-win situation.
Driver Training for Employees. Most companies that have corporate vehicles have a qualification program before employees can drive the vehicle. Despite the upfront expense of a driver training program, you will save significant money in the long run if you implement one. Safe driving practices will lead to lower gas consumption from less speeding, fewer traffic violations, and fewer accidents. You will replace fewer vehicles and lower the risk of traffic lawsuits. In addition, a program like this can provide a discount on some commercial auto insurance policies.
Having company vehicles can be a major expense for any business. By taking advantage of the four tips above, you can save a significant amount of money on your vehicle fleet. A used vehicle that is easily insurable, has great gas mileage, and is driven by trained and qualified employees will serve your company well for many years to come.
