There are a million and one reasons why you might need to consider buying cars, trucks, or vans for your business. Whether it’s a little company car or an entire fleet of delivery vehicles, there are plenty of advantages of investing in wheels for your enterprise.
Cars are flexible and can act as an enticing offer to prospective employees. Vans are handy for deliveries and are also the workhorse of many a business. And if you need to deliver on a massive scale – possibly across international borders – then trucks will be an essential purchase.
The big question is, how do you go about investing in a fleet of vehicles? Let’s take a look at everything you need to know – and what to expect.
Is it worth buying?
First of all, you will need to establish whether buying vehicles will be more cost-effective than leasing them. In many cases, leasing your fleet of vehicles will be a better move, as it helps you control costs and spread them evenly over a year. Bear in mind that depreciation comes into play when you buy new vehicles, too, which you won’t have to worry about in a leasing plan. However, in some cases – if you are using plots of cars, for example – it is sometimes better to buy than lease. When you buy multiple vehicles, you will often get a fleet discount, and there may be other accounting reasons for making a purchase.
What are the costs?
The expenses of owning a fleet of vehicles will vary depending on what – and how many – you buy. You will need to run regular maintenance programs to ensure your assets are in good shape and there are plenty of one-off costs to consider, such as using a 24/7 truck breakdown service or bringing in mechanics. There’s the cost of storage to consider, too – lorries and vans take up a lot of room, and you will need to pay for that space. Finally, insurance is a must if you have a business fleet.
What systems do I need?
You will also need to invest in a robust fleet management and logistics program to ensure you are keeping track of everything. Fuel costs, health, and safety, routes, license checks – they are all needed when you own a fleet and are employing drivers. Logistics is a vital part of any business that uses vehicles, and the goal for every company in this situation is to cut costs without impacting service quality.
Who should drive them?
While company cars can be offered to any employee with a license, it’s a little different for vans and trucks. It is imperative that you hire drivers that are sensible on the roads, and have clean licenses. You should also offer plenty of training, to ensure they always comply with health and safety issues. It might be worth buying a fleet with telematics technology on board, too, so that you can ensure that all drivers are using their vehicles at the appropriate speeds.
OK, so there you have it – a brief guide to some of the basics of buying a fleet for your business. I hope it has helped!
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