Most small businesses require some form of transport, whether it's cars for the owner or key employees or vehicles for delivery or mobile salespeople. But finding the right deal at the right price can be a minefield for the unwary buyer.
With so many makes and models, different finance options and the issue of whether to buy from a dealer or an online company, buying a vehicle can be a confusing and time-intensive exercise.
"It's critical to do your research and take advice from industry suppliers," says Kevin Cavanagh, sales director of Vesource. "All too often businesses buy the first vehicle they see and live to regret it."
Vesource offers the following guidelines for purchasing vehicles:
New versus second-hand
Second-hand
vehicles are obviously cheaper which is, on the face of it, a big incentive.
However, manufacturer warranties generally last only three years, so check if
there is any cover remaining. Also check that there is a service history and
take the vehicle for a test drive. It may also be well worth paying for an AA
or RAC inspection.
Consider how important image is to you and your business. New vehicles portray a positive image and a company that is doing well. Running costs also tend to be much lower as they come with a warranty.
How to fund your vehicles
Financing new or
used vehicles is a complete minefield. Hire purchase gives you ownership
and so the vehicle becomes an asset on your company balance sheet. But, it is a
depreciating asset. Other funding
options allow you to keep money in the bank (gaining interest) or invest in
other areas of your business.
With leasing or contract hire there are a variety of options. Generally you pay a monthly rental for usage of a vehicle and the leasing company replaces it every two or three years. Be aware, though, that with some leasing products you estimate your annual mileage and will be charged for going over this figure.
Do some research
The motor
industry is very competitive, so shop around for the best deal. The internet is
a good source of information and invariably cheaper than buying from a
dealership.
What are your needs?
Ensure your supplier understands your needs. For example, if
you need a van, what will you be carrying? What weight, size of loads? A good supplier will be
able to advise you of suitable options.
Plan in advance
If you decide to
buy a new vehicle, start planning before your old one actually dies. Not all
new vehicles are available immediately. If a vehicle isn't in stock, it may
have to be factory ordered, taking anything between eight to 16 weeks.
Work out the real costs
Think carefully about your budget. What can you afford to
pay? What is the real cost of running your vehicle including a major service,
MOT and new tyres? These are generally the things that don't get factored in to
a budget.
Insurance and road tax
Buying online may
afford you a more prestigious vehicle than you would expect but you need to
consider the price implications this may have on insurance and road tax. Get a
rough insurance quote before you buy.
Think about the
environment (and save costs)
With the government's stance on the environment, eco-friendly
vehicles are becoming more appealing for better fuel economy and lower road
tax. Many people think lower emission cars mean smaller cars but many
manufacturers are cutting emissions on larger fleet and executive cars.
For more information on vehicle supply and finance options, visit www.vesource.co.uk
