Wondering if you should buy a corporate fleet vehicle? Here are the main factors to consider, pros, cons, and costs.
Most companies and dealerships will give discounts for businesses that buy cars for corporate use. Buying a commercial vehicle is available at almost any dealership, all you have to do it call and inquire about your options. But you may be wondering what the advantage is and should you buy a corporate car for your business. The answer is not always a straightforward yes or no, because it depends on your business, your situation and financing.
Sometimes fleet discounts are offered for as little as 5-10 cars, but even if you are only looking to purchase a few vehicles for your business, it can still be considered as a corporate fleet car. In general a fleet vehicle is just a car that is used for business purposes and owned by the company. Rather than using your personal car or having your employees use their personal cars, you can use a company owned fleet car.
When looking at buying a corporate fleet vehicle for your company, there are several things to consider. There are certain advantages and disadvantages that you should look at before buying. Below are some of the factors you need to take into account.
Are Fleet Vehicles a Good Buy
Obviously the cost of a corporate car is a big factor in determining if you should buy a fleet vehicle or not. Companies can usually get discounts on fleet cars that aren’t available to individuals. And you should consider that you can usually get better financing or leasing options for fleet cars.
When purchasing a fleet vehicle, the business is paying for it so you don’t have to risk your personal line of credit or financial stability. If your company has the means to purchase or take out a loan on the car, that can relieve a lot of stress from you as a business owner. The business can also deduct certain expenses and interests on the loan for the car, which is not available to individual owners.
You should also consider the cost of purchasing or leasing a fleet vehicle compared to renting cars for your employees. If your business only requires employees to use their vehicle part of the time or for special occasions, the cost may outweigh the benefits if you purchase. If you need a lot of vehicles for your business, the cost may not justify purchasing that many.
One of the benefits of buying corporate vehicles for your business is the convenience that it provides for your employees. Many employees will see it as a bonus to have a company car, and it makes their jobs easier if they have a reliable means of transportation. Another benefit is that you can also use the fleet cars for advertising by putting your logo on the car.
Fleet discounts are another perk that comes when buying corporate cars. If you need to buy more than 10 cars, you could potentially get a great deal from the dealership. It is definitely worth considering if that’s your situation.
There are also some negatives to think about when you’re deciding if you should buy a corporate fleet vehicle. Managing your fleet cars can easily become a large task that requires additional employees. If you have a lot of fleet vehicles, you may have to hire someone to be in charge of making sure the cars are running in good shape and stay up-to-date with repairs. Also, you will need a place to store the vehicles if you don’t allow your employees to take them home.
Although you may get discounts on fleet cars, you also need to think about the insurance costs and other expenses that go along with it. You’ll have to pay for gas, check-ups and other things like repairs. You may be able to deduct these expenses but it is worth it to consider before you buy.
Look at Your Situation
All in all, buying a fleet car comes down to your own situation. Really look at where your business is and if it makes sense to purchase corporate cars or not. Depending on the cash flow in your business, the size of your business, and other factors, fleet cars may or may not be a good idea.
Request Your Car is an all-inclusive car buying service that will help you with your corporate fleet vehicle purchase. Learn more about our corporate fleet vehicle purchase service.