Cars age with time and start to show problems. Whether you have one for personal use or a bunch of them for your company, there comes the point where upgrading/changing them is the better option than spending money on repairs and maintenance regularly.
With the cost of an average new car in the US just under $40,000, upgrading your company’s cars can be a significant expenditure. However, there are some tips and tricks that can make upgrading cars easier, safer, and more efficient.
Analyse the Needs
Before you go on and upgrade your company’s cars, the first thing you need to do is analyze the needs of the vehicles. Some questions should be asked in a meeting of the concerned company officials before the decision is taken. These should include:
- Are new cars needed?
- What would be the financial impact of the new vehicles?
- Can the old vehicles be repaired/reconditioned and used?
- What type of cars would be needed?
- What would happen to the cars the company currently has?
After considering all the factors, go for the cars that fulfil the requirements and are not overkill. You don’t need to go for the cheapest option either.
Go For Eco-Friendly Options
This will benefit you on several fronts. For one, having an eco-friendly policy is suitable for any business. Governments are making the emissions standards more and more strict, so having eco-friendly cars will benefit the company in the long run.
This aspect becomes even more critical if your company pays for the fuel costs of the car when used for official tasks. Fuel-efficient cars are ultimately more economical to operate. So, even if such cars cost you more upfront and in the monthly payments, they’ll eventually pay back in the form of savings on fuel costs.
Electric cars are also an excellent option if your area has good charging points. With America planning to cut down all carbon pollution by 2030, electric cars are inevitably the future of mobility, so better embrace them now.
Think Long Term
Another important thing to consider when upgrading a company’s cars is to think of the next five or ten years. The cars you buy will be with the company for a long time. Make sure you go for the ones that will be relevant and usable after that time.
Reliable cars from brands known for durability and long life are the best option because employees don’t tend to care for company cars.
Also, if you plan to extend the company’s services to remote areas in the future, go for the cars that will be useful in such a scenario.
Sell the Current Cars
Selling the cars that your company already has is one of the easiest ways to make the upgrade process more manageable and less of a financial burden. If you think this can be hectic, you are wrong. In this age of the internet and advancement, selling cars is a quick and easy process.
In most cases, if you sell the current cars and use that money for the downpayment of the new ones, you’ll hardly notice any financial burden from the whole upgrade project.
Bargaining Can Save Money
When you buy a car from a dealership, the price is pretty much fixed, but you can get a better deal if you purchase a dozen of them.
It is a good idea to visit a few different dealers before deciding which one offers the best prices and suits your needs.
You Don’t Need to Buy Brand New Cars
It is not necessary to buy brand new cars for the company. Most of the time, buying a slightly used car makes more financial sense than going for a new one. Consider the needs of your company before you make the decision.
If it is a car for the low-ranking staff or a vehicle for cargo use, you can save money on a used one. It ultimately depends on the company’s policies, but do consider used cars.
The Car’s Price is Not the Only Expenditure
As mentioned earlier, the sticker price of a car is only a part of the ownership cost. Suppose the company has to operate the car for some years. In that case, you need to consider everything from insurance to fuel consumption.
It would help if you carried out your due diligence before making the purchase decision. How reliable is the car? How much does it cost to maintain? What is the resale value? How expensive are the parts? Considering all these and other questions will ensure that the cars you are buying are the right decision.
When a car passes a certain age, it needs to be renewed. If this is a company’s car, you might need to buy a bunch of them at once, depending on its size. This can be a considerable expenditure, and you need to make the purchase decision the right way.
It would be best if you considered that the cars you are purchasing are the ones that the company needs, are eco-friendly, and will be relevant in the company’s long-term plans. Also, consider selling the current cars and buying the new ones from one dealer to get a discount.