In India, around 730 000 small businesses closed in the past year due to unforeseen circumstances and poor financial management. When your company is still in its infancy stages, making the right financial decisions and asset purchases is an important step in ensuring your survival. To avoid spending company money unwisely there are a few considerations to make when buying a commercial vehicle. One of the most important is making sure that the vehicle you purchase is best suited to the industry in which your company operates.
Assessing Company Size and Industry Involvement
The first step is to choose a class of vehicle. This will be determined by looking at the operational requirements of your company. For example, if your business operates in the construction industry and its main function is the transportation of construction materials to and from sites in different locations, then buying a small hatchback or sedan will not suit your operational requirements.
In these types of situations, it would make more sense to spend money buying an asset that can both further the goals of your company as well as suit the everyday requirements of its employees. Pickup and dually trucks and flatbeds are best suited to landscaping, construction, and home renovation companies.
Maximizing Your Asset
Alternatively, it would make no sense to buy a flatbed truck for a small, start-up tech company or lawyer’s office. In this case, a vehicle that will simply get employees from point A to point B in an urban setting is far more feasible. For companies like these it would also make sense to buy a small vehicle and double up on the investment by wrapping it in company branding to use as a moving advertisement. The price of wrapping changes due to vehicle size, and a small vehicle that doubles as employee transportation and a company advertisement is a good way to spend money on a company asset, such as a commercial vehicle.
A Question Of Maintenance
Maintenance is also a major factor when purchasing a business vehicle. There are a vast number of vehicles that have low maintenance costs and are still reliable, and these are a far better option than a car that requires expensive servicing and has hard to find or expensive parts. Once again, the question of purpose will come into play here – maintenance will tie in with what the vehicle is used for, and this will affect the costs associated too.
Additional Purchasing Points
Other important considerations such as budget, whether you plan on leasing or buying the vehicle, and whether or not to buy a used car, must all be taken into account. Each of these factors can massively impact your business’s profit margin and can contribute to your success.