As your small business grows, so do your expenses.
Naturally, the incoming cash and steady growth will (hopefully) make up for the extra expenses, but it’s always a good idea to save money whenever possible.
Little savings here and there, whether on rent for your building, leasing company vehicles or office supplies, add up to big savings over the course of the year, ultimately affecting your bottom line.
If you own and operate a business that requires drivers, you’re going to have to decide whether it’s in your best interest to own or lease your company vehicles.
First, ask yourself two questions:
1. How long are you planning on keeping the car for? If you plan on keeping your company car for the long-run, it will most likely be in your best interest to buy the car. If, on the other hand, you’re hoping to stay up to date with the most recent models, you should probably lease the vehicle.
2. What do you want your monthly payment to be? If you can pay for the car in cash and want to use it for a while, think about purchasing it. If you want to have low monthly payments and upgrade the car every few years, consider leasing it.
Companies that may want to consider leasing their vehicles include those that meet with clients regularly or drive clients around.
The type of car you are seen in portrays an image of what your business stands for.
The only businesses that may want to purchase a company car and drive it for 10+ years are those in the construction industry.
If you’re carrying tools and heavy equipment in your vehicle, you most likely won’t be too concerned with the appearance as it’s bound to get dinged up here and there.
Save Dollars in the Process
If you ultimately decide to lease your company vehicle, there are many ways that you can save money.
The article “5 Ways to pay less when leasing a car” recommends driving less to save on mileage, doing your research on the dealership and fees beforehand, picking a car that will hold its value well and, of course, negotiating the price.
Of all the ways to save money on a lease, negotiating the price is going to be where you find your biggest savings.
Good negotiators can save themselves up to 15 percent of the sticker price. Car dealerships know that people are going to want to haggle, so they usually mark up the sticker price to give it a little wiggle room.
Research the make and model of the car you want and come up with a monthly payment that you are willing to pay.
Stick to your guns and refuse to go higher than that payment (of course, this is assuming you’re being reasonable).
If you have to leave the car dealership lot empty-handed, then so be it. There’s a pretty decent chance they will be calling you tomorrow and offering you a better price. Patience is key when it comes to haggling and leasing a car.
About the Article: Sarah Brooks is a freelance writer living in Charlotte, NC. She writes on a variety of topics including small businesses, social media and personal finances.