Savvy business owners often take their profit and reinvest it. This is a very good thing to do, and it’s very easy for you to use it to your advantage. Hiring more employees is great if you want to make the most out of your money, but at the same time, if you can put the money into your vehicle then this will work wonders for your brand. Buying a car for business use is one improvement that will help you to streamline your process and it will also expand your  opportunities for growth. Whether you are looking to provide a mobile business or whether you need a way to get from one location to the next, having a business car can save you a great deal of money and it can also make your life easier. If you want to make a solid investment then here is a list of things that you can do to choose a good company car for your business.

Pros and Cons of Buying a Car for Your Business

Buying a car for business comes with tax, employee and insurance advantages. Deducting car costs from your taxes is a good way for you to save yourself money in the long run and with a separate insurance policy, you know that any accidents that happen while in the car will be handled with their own policy. You can take advantage of helpful tax deductions too. When you buy a car through a company, your business will be able to deduct the cost of ownership as well as general expenses such as gas and even maintenance. You can also benefit from your own plicy, because company cars can be insured separately so you can drive them without impacting the price of the personal policy that you have.

Find out what You Can Afford

Another thing you need to do is figure out what you can afford. Whether you are a new business owner or whether you have been doing this for quite a few years, you need to take a look at your accounts and you also need to try and make sure that you have the money needed to make a purchase like this. Remember to factor in things like insurance, maintenance, gas and even interest if you can. If you are using finance then it’s even more important for you to document things like this, so be mindful of that. 

Buy your Car through your Business

If you plan to use the car for business use then you need to make sure that you get the most tax benefits. The best way for you to do this would be for you to buy it through your company. Companies are allowed to deduct a range of tax expenses such as gas, oil changes, tires and more. If you can use this to your advantage then running your car becomes a lot easier. In addition to this, you may find that you can deduct car loan interest, which is ,great to say the least.

Pick a Model

You also need to try and pick a model that you know is going to fit your needs. When the time comes for you to plan your car purchase, you have to consider what type of vehicle is suited to your needs. Popular commute cards are ideal for getting around quickly but at the same time, you do need to make sure you have a good amount of cargo space if you intend on using the car to make some deliveries.

Prioritize Features

In addition to choosing the right vehicle, you also need to make sure that other employees are able to do their jobs. If you are a realtor and you find that you drive around your clients then you may want to invest in the latest safety features. You may be interested in things like lane-keeping assistance or even emergency braking. Client safety should be your priority here. Whatever features you need, make sure you give priority to the ones that are going to help you achieve your company goals over time.

Buy Used

For a lot of small companies, buying a new car isn’t the most affordable option you can choose from. If you want to value function over form then buying a used car is one of the best ways for you to save on upfront costs as well as in depreciation. You have to make sure that you understand the fact that older cars come with risks too. This includes the fact that they may need more repairs than other cars, so you have to make sure that you factor things like this into account. If you don’t then you may find that it becomes harder for you to get the result you want. If you want a quality sports car or a good brand of vehicle then be sure to check out the range at Listers.

Is Leasing Worth It?

Another way for you to know if you can afford a company car would be for you to lease a vehicle. If you are a micro business and you can’t afford a great deal of overhead costs then getting a car loan with a very high interest rate might not be the best move for you to take. When you have a lease, it becomes easy for you to reap the benefits of having a business car that looks the part without having a high down payment. You may also find that leasing gives you access to newer car options and this can give you a monthly payment. Any repairs, should they be needed, are going to be handled by the payment company which is, great to say the least. The benefit here is that you do not need to worry about the value of your car depreciating to more than you can afford. You won’t be able to deduct things like depreciation from your taxes but at the sa,me time you can still take advantage of tax advantages.

Fuel Economy

You have to keep things like fuel economy in mind. A company car is a huge investment, so you have to remember that fuel costs can add up fast. If you intend to drive around for business purposes then you can always claim for this but at the sam,e time you should try and find a fuel-efficient model if you can. You can even find some hybrid models that are great here so make sure that you give some thought to that. The more savings you can get, the better at the end of the day.

Give Some Thought to your Brand

You need to give some thought to your brand too. Your company car is an extension of your business, so you need to make sure that whatever car you choose is relevant. Not every industry is going to prioritize aesthetics at the end of the day, but you do need to give some thought to your car. You need to make sure that you are impressing clientele and that you are also taking steps to make it known that you are advertising your brand. You might want to put some decals on the side of your car with your number on it, but if you have a sports car then this might not be as much of an option. It does depend on the overall look and aesthetic you are going for so if you can keep this in mind then it will help you out quite a lot later down the road.