Four Tips for Financing Your Fleet
When you are a small business, every cost is hard. Big purchases such as vehicles are even harder to make, but they are necessary for the expansion or simply the running of your business. There are three ways to get a new company car for your business. These options are to buy the vehicle outright, to finance it through a loan, or to lease it. Leasing is a great option if your business doesn’t have a lot of cash on hand, and especially if your aim is to change your vehicles every few years. This freedom is useful if you are selling a specific image to clients or customers. If you want a long-term, hard-working car, however, it’s better to buy.
1. Have Your Options Ahead of Time
Before you buy anything, you should do all your research. This means if you want to buy Mercedes commercial vehicles for your business you need to know which model fits your business best. It also means doing further research such as safety tests, and even the manufacturer’s price. This will help ensure that you choose the best option and give the best price for the vehicle.
The vehicle that you choose needs to be able to work for your company. Don’t get a car when you need a van, and similarly don’t get an unnecessarily big vehicle when a smaller one will do.
2. Financing Options
The shorter your financing plan, the better. You can either wait and save up for new company vehicles – if, for instance, you already own some vans that work for the time being. Or you can go to the bank and get a pre-approved loan. This pre-approved loan will typically help you negotiate a better financing deal with the dealership, and otherwise helps you determine your maximum budget.
3. Wait for Financing Deals
If you have the time, wait for financing deals. Waiting for 0% financing options is perfect for every small business that doesn’t require the vehicles right away. To ensure you have the freedom to make this decision, look for new vehicles once you notice your old ones are starting to need more money maintaining them and need to be replaced. Waiting for a deal is the best way to purchase a vehicle.
4. Always Check for Tax Reductions
As a small business, you may be eligible for tax reductions or refunds. The kind of reductions that you can claim will depend on where you live and your business, but it’s always worthwhile to know your options.
Your small business needs to be smart about all big purchases. If you aren’t, then you can easily run out of money and suffer while it is all tied up in financing repayments and other bills. Be thorough when researching your options, and try to wait for the best deals if you can. A quality vehicle will always be a better purchase than a poor one. Leasing a vehicle until you can buy your own can be a great solution, but it depends on your funds and circumstances.