Home > Run and Grow > Consider These 4 Tips Before Investing in Your Next Vehicle

Consider These 4 Tips Before Investing in Your Next Vehicle

By: SmallBizClub

 

buying a new car

If you’re in business and looking to invest in your next vehicle, getting a good deal on the price is one way to invest in your next vehicle – but what about after the fact? Getting as much value as you can on a car is difficult, but not impossible. True – you do lose 20% of the residual value of the car as soon as you drive it out of the dealership. Here are some tips to get as much value as you can out of your next vehicle

Vehicle costs vs running costs

If you are buying a car, you need to weigh up the cost of the vehicle (list price) and how much it will cost to run each month. You have to account for insurance, repairs, and servicing (more on that later.)

For example, you may balk at the price of some electric vehicles (EVs) – but you will save money over time in a lower price for fuel (electricity). Hybrid electric vehicles may still need some fuel but will save you thousands per year as it reverts to its electric engine for part of the journey.

Consider your car loan options

Though interest rates are climbing month to month, you should consider your car loan options. If you are using the vehicle for more than 50% business use, you can take advantage of a chattel mortgage or hire purchase. In these types of loans, you may borrow more than 100% of the purchase price to amortise insurance or servicing. You can also claim the GST paid, depreciation, and fuel (to a certain extent) as well as interest paid. If you are a sole trader, you can also opt for consumer car loans – though the choice is yours as to what suits your business best.

Invest in the extended warranty

A car’s usual warranty may cover you for a limited time – but paying a bit extra for the extended warranty means potentially saving more money. If you pay upfront for extended warranty, you can benefit from discounts – buying warranties later in the car’s life will cost more relative to its age. These warranties can be tailored to your needs, cover vital repairs, and increase resale value as they can be transferred on to new owners. Warranties may include four cents on the dollar what insurance companies charge hundreds for, such as roadside assistance for example.

Keep up the logbook services

It’s common knowledge that a car needs routine maintenance to make sure it works in proper order. However, motorists can skimp on logbook services by opting for the much cheaper and far less comprehensive general service or oil changes. Logbook services may cost a bit more, but they will extend the life of your car considerably as well as maintain efficiency. This type of maintenance is preventative – stopping problems emerging before they can really cut into your bottom line.

Like all things in life, paying more at the start can cost you less over time. Remember to consult a financial adviser before taking out any type of credit.

Published: July 20, 2022
988 Views

Trending Articles

Stay up to date with
small biz club logo

SmallBizClub

SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

Related Articles