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Photo by Kevin Bidwell
At some point, you’re going to need to buy vehicles for your business. Before you write that check you need to make sure that you are making the right decisions for your business.
Vehicles can significantly impact your operations, efficiency is the bottom line, so you need to make sure that you are making the right decision. This comprehensive guide will help you to navigate through all the key factors that should be considered when you’re choosing vehicles for your business.
Assess Your Needs
One of the first things you need to do is make sure that you are accessing your business needs. There are three main ways in which you can do this.
Identify the Purpose
You’re going to need to identify the purpose of the vehicles. You need to clearly define what you want the vehicles to be used for. It could be for transporting goods or ferrying your employees.
It may even be for delivery services. The key takeaway is that you need to make sure that the primary purpose is identified. This will help you to zero in on what is right for your business.
For example, if you’re going to need delivery vehicles you’re going to want to make sure that they are as fuel-efficient as possible.
Capacity Requirements
You need to think about the capacity of the vehicle that you buy. This means you need to consider the passenger seat and the cargo space that is best for your business.
If your business is going to be transporting heavy items, the capacity and interior dimensions of the vehicle is something you must have at the forefront of your mind.
This type of vehicle is likely to always be in constant use. You want to make sure that it is durable and reliable. Otherwise, you’re going to be hauling it to the mechanic very frequently and this is going to cause some severe holes in your company’s finances.
You don’t need vehicles that are going to run the business piggy bank down. You need vehicles that can stand the test of time.
Geographical Locations
It’s important that you consider the terrain and distance your vehicles are going to cover daily or weekly. If you’re mostly in the city then you’re going to require compact and fuel-efficient vehicles.
If you’re mostly going to be using the vehicle on rough country roads then you’re going to need a vehicle that can go off road very smoothly and safely. This will probably necessitate you buying four-wheel drive vehicles.
Budget and Cost Considerations
You also need to take a peek into your company finances to decide whether you can purchase or lease a vehicle. Purchasing the vehicle may be wiser in the long run and put less of a strain on your bank account.
However, if you are just starting out, finances are very tight and you are on a shoestring budget you may want to consider leasing a vehicle instead. This may be what you need for cash flow management in the short term.
Initial Costs
Think about the initial cost that you’re going to have to pay when you get the vehicle. You need to consider the purchase price as well as a down payment. There are also some miscellaneous costs that can hit you very hard if you’re not careful.
You need to think about them ahead of time. Consider the cost of registration, insurance premiums and taxes. Look at all the financial considerations out there to make your final decision.
Total Cost of Ownership
The total cost of ownership is also something that you need to consider very carefully. Take a look at the two main factors you need to think of.
Depreciation
You need to understand how different vehicle models depreciate over time. Some brands and models will hold their value for a much longer time than others.
This will affect the total cost of ownership that you have for the vehicle, especially if you plan to resell it to gain back some cash in the long run.
If a vehicle is high-end and from a specific brand you may feel as if you’re throwing money away because you have to spend so much upfront, but in the long run you’re going to benefit from it because the vehicle will have a higher resale value.
Resale Value
Resale value is simply the expected value of the vehicle when you are ready to sell it. This is why you need to consider the depreciation of the vehicle.
Since resale value is brand and model-specific it’s important for you to do a deep dive into potential resale value before you sign on the dotted line and drive any vehicle out of a dealership.
Safety Features
When it comes to your employees or goods you can’t afford to take shortcuts or chances. You must make sure the vehicles that you purchase for your company are safe at all times. It’s a tall order, and with so many vehicles out there to choose from it can be a bit head-spinning. Here are some things you need to consider in terms of safety.
Safety Ratings
You need to look carefully at the safety ratings of any vehicle that you are considering. Your employees should be protected at all times.
Your employees should feel confident when they step foot in a vehicle if you are using it to transport them. Whatever you are carrying in the vehicle should also be secure as well.
Make sure you stay compliant. Vehicles that are not safe can leave you liable, the last thing you want is to have to hand over your hard-earned business capital to pay for injuries and damages to goods.
Consider looking into advanced safety features such as electronic stability control, anti-lock brakes and driver assistance technologies. These may come with newer types of vehicles in many cases, so consider whether or not you want to invest this way.
Customization
You’re going to need to make sure you are customizing the vehicle in some way if you’re going to be using it for your company. This may mean you need to wrap the vehicle to show off your logo and tell people about your products.
This is a great way for you to showcase everything about your products and services on what is essentially a moving billboard.
You might also want to consider getting customized license plates as well for your vehicle. You can get reg plates for sale, so that you can get a plate that matches your business name or any other detail you would like.
Make sure that you take great care in what you put on the wrap and feel free to change it or use different styles of wrap for varying vehicles. The more facets of your business you can advertise while these vehicles are in use the better off you will be. This is brand awareness on steroids, especially, if the vehicles are used very often.
Another aspect of customization that you may want to consider is what you are going to do about the interior of the vehicle. Choose vehicles that are easily customizable especially if you need things such as shelved inside. You might need tool racks or other spaces for specialized equipment. Consider how best you can modify a vehicle to suit these needs before purchasing.
Employee Comfort and Ergonomics
Employee comfort and ergonomics are also something that should be considered. It’s not just about how much a vehicle can hold it’s about how comfortable the vehicle is as well.
Look at the plushness of the seats. Don’t be afraid to put your hands on the seat and feel the level of softness.
Sit in the seats of these vehicles as well. The vehicles need to offer a high level of comfort, especially in the driver’s seat to prevent fatigue and increase productivity.
This is especially true if your drivers have to make several deliveries or trips for whatever reason. You want to make sure that they are extremely comfortable so that you can reduce the chance that there may be some type of accident on the road.
You need to make sure that the vehicle design supports some very ergonomic driving positions. It should also have easy access control to set the seating in ergonomic positions. The most important thing is the comfort of the driver and passengers.
Remember when employees are in your company vehicles and they get injured, it’s likely that you will have to pay for these injuries as they are considered on-the-job injuries. This is why insurance is necessary as well. However, why not reduce the chances of anything ever happening by making sure you get the best vehicles possible?
Selecting the right vehicles for your company requires a lot of thought as you can see. It’s not a decision that should be made haphazardly. Otherwise, you’ll be left scratching your head and nursing a fractured company bank account if you make the wrong decisions. All of this can be avoided by simply doing due diligence before making purchases.
