A company car or vehicle is a valuable addition to your business organization. Not only does it offer great value for your employees, but it can help to serve positively in multiple ways. There is a reason why some of the biggest businesses in the world invest in them.
When it comes to buying a company vehicle, there are certain important considerations you need to factor in. In other words, buying a company vehicle is not as easy as buying one for personal use. You need to look at costs, efficiency, and more when buying one.
In this resource article, we will attempt to settle a debate that has been raging on for quite some time. There are divided opinions around buying a used car as your company vehicle. If you are a business owner that is considering the same, you should be paying attention to the article.
Benefits of having a Company Vehicle for your Organization
There are certain advantages that company vehicles bring. In this section, we will try to list down a few of the major ones-
- Company Image and Projection– Having a company vehicle says a lot about your business. Successful businesses and their executives use company vehicles. This can help you paint the image of your business in a positive light.
- Attractive Incentive for Hiring Good Talent– Most businesses realize that top-level executives require more than just high salaries. They require chauffer-driven company vehicles that can help announce their status to the world.
- Opens Profitable Business Opportunities– Showing up to a high-profile client meeting in a set of wheels will probably set the right tone for your business. It shows that your business is doing well and a partnership with you will be good for the client.
- Promotes Branding and Marketing for the Business– Some business niches can effectively benefit from having the company logo on the company vehicle. Real estate, construction, telecom, and cleaning services can print brand names and contact details.
- A Company Vehicle can be shown as an Asset– Many businesses do not realize this but you can show the company car in your tax filings as an expenditure. For investors, this means that just like office space and machinery, the company vehicle is an asset.
Due to the advantages listed above, many businesses opt for resale cars in Singapore. It helps them save costs, and put forward a positive image of the company.
Reasons why your Business should Invest in a Used Car as your Company Vehicle
In this section, we are going to list down some probable reasons why your organization should look to go for a used car as your company vehicle-
- Firstly, while it is important to project the business in a positive light, you need to factor in the costs. New cars are expensive and can offset your budget.
- Secondly, for a business, understanding and valuing asset depreciation is critical. New cars depreciate much faster than used ones. This is something that is a strong reason.
- Thirdly, a used car means you would be paying far less in terms of registering it in your company name. This can help you save significantly if you buying more than one.
- Fourthly, in terms of insurance costs, a used car will command a far lower premium than a new vehicle. This means further savings and monetary risks for the business.
- Fifthly, you do not have to go for finance or loan options when buying a used car. You can easily save up and pay cash upfront for the used car. This means no interest!
If you go through the list of reasons, you can see how buying a used car for your business can be highly advantageous.
The Bottom Line
If you are looking to buy a used car for your company, make sure you do a thorough vehicle inspection. The car should be in a new showroom-like condition. You also need to make sure that the upholstery looks, feels, and smells new. Buying a used car from a reputable and credible dealership is something you should be aiming for. If you have any other questions, you would like us to answer on buying used cars for your business, let us know in the comments below.