The Dos and Don’ts of Purchasing a Car for a Business

Purchasing a business car

Purchasing a business car Car dealers can sometimes sense an uninformed customer when they walk into a dealership and will try what they can to take advantage of them. However, this might be a slight exaggeration, depending on what your local car dealership is like.

The truth is, you do not need to be a car enthusiast or hobbyist to be a well-informed customer. By keeping the following dos and don’ts in mind, you can be sure to get the car you want at the right price.

The Dos When Purchasing a Vehicle For Your Business:

Buy at the End of the Month

Plan your purchase, but wait until the end of the month to close the deal. Most car dealerships run on monthly sales targets and you might be lucky enough to find a discount and even free extras during this time as they are looking to reach their targets.

Consider the Type of Car Your Require

There are numerous car makes and models out there and so, you’ll first want to consider how you will use the vehicle. You may want to purchase your dream car, but it may not match your business. Assess your business requirements and demands and consider the car’s primary purpose before narrowing down the selection.

Make The Dealers Compete With Each Other

The experts at MaxFunding suggest, “most car dealers and car lenders will turn down an offer without hesitating, but won’t when they are asked to match the competitor’s price. When it comes to cars, there is always a better deal out there and the dealers are aware of this. As such, make sure you talk to a number of dealers and make them compete for your business.

You can even consider using a car broker. This could save you a substantial amount of money as they have an established network of dealers and have experience in negotiating for a good price.

Purchasing a business car

Be Aware of The Unnecessary Extras

Car dealers have a reputation for bombarding buyers with extras, at a cost or even for free, in order to sweeten the deal. As such, it is imperative to think about the extras that you actually need and resist walking out with additions that you did not want.

Some of the extras that you should avoid include paint protection, rustproofing and extended warranty. A new vehicle already has these and so, the extras are usually a sales trick.

The insurance cost ideally varies vastly depending on the type of car. New cars are usually cheaper to insure than you would expect due to the availability of spare parts. On the contrary, cars that do not feature the latest safety features such as traction control or auto-braking, or models with a poor ANCAP rating tend to have higher premiums.

Compare all Available Loan options

If you intend to take the car financing route and take a car loan, it is advisable to do your homework. There are numerous options in regard to car finance and so, it’s imperative to know how they differ, and what makes one loan more competitive compared to another.

Car dealers, along with banks, offer car loans, and so, it is vital to compare both and settle for the option that best matches your needs.

The Don’ts of Purchasing a Business Car:

Don’t Confuse Shopping with Purchasing

Shopping and purchasing are different stages. They have varying purposes and call for varying strategies.

The shopping stage includes doing research, test driving, etc. During this phase, you’re just evaluating the different cars. Once you’ve narrowed down to what you want, go to the dealership and tell them you are ready to make the purchase.

Don’t Allow Price to Be The Only Factor

Price is certainly a huge factor when it comes to buying a car for any reason, but it should not be the only one. Sacrificing quality for price will only end up costing you more money.

Do not take the ANCAP safety ratings for granted as they determine how likely a vehicle is to experience an accident and injure or kill you. Ideally,  they affect the insurance premium for vehicles. If you want a safer vehicle and save more on insurance cost, then you will want to go for a car with at least a 4-star ANCAP rating.

So there you have it, important things to keep in mind when buying a car for your business.


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