6 Things to Look for When Buying a Company Car
Buying a company car is an exciting experience that few are so fortunate to have. As thrilling as buying a new car may be, there is always plenty to consider when all that’s left is your signature on the dotted line. A company car can be described as many things, but one thing it shouldn’t be is a mistake. When you’re knee-deep in the decision-making process, you want to be sure that you’re checking off all of the appropriate boxes that ensure you’re driving home with a stellar deal.
Choosing the best company car for your specific needs takes plenty of careful consideration of your transportation priorities. Using this guide, we’ll walk you through the six things you should look for when buying a company car.
1. Leasing vs. buying
Before stepping foot into your local dealership, you should come prepared with a solid understanding of whether you’re looking to lease a car or buy a car. Leasing is a great option if you’d don’t have the cash upfront to fork over the cost of a new car. The most glaring downside is that you don’t technically own the vehicle and must return it to the dealer after the lease is up (unless you decide to buy it).
Buying is a great option if you want to own the car at the end of the payment cycle, but is typically the more expensive option since you’re paying for miscellaneous charges, taxes, and fees.
How much money can you allocate toward a company car that won’t put you or your business in a financial hole? Price can be one of the most difficult elements to calculate as different financial situations arise with different payment methods. A reasonable budget does the wallet and the mind plenty of good.
Be sure to do your fair share of shopping around, as well! Car prices are always negotiable and fluctuate from city to city. This means that Audi A4 you’ve had your eye on may be more affordable at an Audi dealer in Towson than a dealer in the heart of Baltimore. Do your research to score the ultimate deal on your car purchase.
Company cars are generally used for work-related travel and a dash of personal transportation. Fuel efficiency should be at the top of your list if you’re looking to find the most cost-effective deal. Even if your employer offers to pay for your fill-ups at the gas station, getting more mileage per gallon is always the better option.
Another important question to ask yourself is how will the car run? On diesel, petrol, electric, or hybrid? A fully electric car will cut out fuel costs completely while a diesel car may run you a pretty monthly bill. Weigh your options and calculate costs before driving your future company car off the lot!
Who will you be sharing the car with? Will you need to drive clients around? Will you be carting around fellow colleagues? A two-door vehicle might be the perfect size for you and one other person, but if you’re ever expecting to have more than two people, a sedan, crossover, or SUV may be your best option.
The same applies to trucks! Four-door trucks are a far more accommodating option for those who plan on filling up the seats in their company car.
How does the car rank for reliability? What are the safety ratings? How have current and previous owners rated the car? Some car manufacturers have a bad reputation in the dependability department, and that should be an immediate red flag when doing any kind of car shopping, let alone company car shopping.
Scour reviews online before going in for a test drive. No matter how beautiful or logical a car may be, if it’s unreliable it’s not worth the future headache.
Cars come with taxes—it’s a simple fact of modern life. Though they can be a pain to understand, they should play a key part in your decision-making. The first place to look will be at the vehicle’s CO2 emissions. Cars that emit higher volumes of CO2 come with higher taxes as they are more harmful to the environment. As regulations become tighter, car-buyers on a budget will greatly benefit from purchasing vehicles with minimal CO2 emissions.
With these six important things to look for at the top of your car-buying checklist, you’re sure to drive away with a company car both you and your employer can thumbs-up. Have any tips for novice car-buyers? We’d love to hear your comments down below!