How To Choose the Right Company Car for Your Business

Depending on the type of business you run, a company car might be essential for your business operations. Having a company car could be useful for a number of scenarios, including:

  • When you need to make deliveries
  • If you run a lot of errands
  • If you need a shuttle to transport your staff
  • To make client visits or provide maintenance services such as HVAC or appliance installation

If any of these sound applicable to your business, you might want to consider investing in a company car for business. But before you purchase any vehicle for your business or personal use, there are a few things you’ll need to consider first.

In this post, we’ll guide you through the process to help you find a vehicle that’s right for your business’s needs.

1) Compare new and used vehicles

Even if you have a specific make or model in mind, your first step in the car buying process should be deciding whether you want to shop for a new or used vehicle. Used vehicles are generally a lot cheaper than new ones and oftentimes, they get you the most value because of how quickly new cars depreciate the moment you drive off the lot.

Many auto dealerships sell new and used vehicles, so it’s more a matter of reviewing your business’s budget than finding the specific vehicle you want. Plus, you never know if you’ll find the perfect vehicle right there on the lot.

Note: If you decide to buy a car from a private dealer, be sure that you and the seller are both in compliance with your local area’s car buying and selling rules.

2) Determine your needs

Once you’ve had the chance to decide whether you want to buy new or pre-owned, you should create a list of your needs and wants for your company car. This list will heavily depend on the purpose of the vehicle, so keep that in mind, too. If you’re shopping for a tow truck, for example, your needs will be a little bit different than a business owner looking for a vanpool.

If you’re not sure how to draft up your list, refer to these questions to get you started:

  • How much in-cabin space do I need?
  • Do I need to have towing capabilities?
  • How many miles will this vehicle be traveling on a weekly basis?
  • Is fuel efficiency a top priority?

After you’ve answered these questions and come up with your own additional needs, you’ll have a better idea of what kind of car is best suited for your business. Maybe it’s an SUV that can haul up to eight people to and from work. Or perhaps you need a utility-style van to fit your inventory as you make flower deliveries all over the region.

But keep in mind, even if you have a detailed list of your needs and wants, don’t allow it to influence your decision too much. You might find a vehicle that meets all of your needs, but you want to be able to transport large items from time to time. If a tow hitch isn’t absolutely necessary, maybe renting a moving truck would make more sense for your needs.

3) Review safety features

The most important process of buying a vehicle, for yourself or your business, is making sure it’s a safe vehicle. And when you’re buying a car for your company, you could end up taking on more liabilities when you let staff drive or ride in the company car, so this is a step you won’t want to skip.

To easily compare the safety features and safety features of vehicles, use a car comparison tool. In addition to safety features and reports, most of these tools will also present pricing so that you can make sure you’re getting a good value.

Final thoughts

Besides choosing the make and model of your company vehicle, you’ll need to think about your business’s budget, the safety features of the vehicle, and your business’s functional needs. Use this post as a guide to help you find the right vehicle for your company, no matter what you’re looking for. Happy car shopping!

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.