If you need a vehicle for your business, it is important that you take your time to find a suitable automobile that will tick all of the boxes. You also need to weigh up whether it is best to buy a new or used car and this will depend on your situation and needs. This post will look at a few of the key considerations to help you to arrive at the right decision.
Specification
One of the main benefits of buying a new car is that you can choose the specification. Businesses often have needs from a company car, so it could be helpful to buy a new car if you are in a position to do so. This way, you could ensure that the car has everything that you need, such as a reversing camera, digital cockpit and cruise control just as a few examples. You might be able to find a used car with the specification that you need, but it could take you a long time to find it.
Depreciation
One financial consideration that you need to factor in is depreciation. If you were to buy a new company car, you will find that you lose out on a lot of money if you decide to sell down the line and this is never ideal from a business standpoint. New cars can lose around a third of their value after just one year and over half after three years, so you could take a big financial hit. The rate of depreciation slows after this, which is why a used car could be a smarter financial move (particularly as you can get more for your money in the used car market).
Maintenance
Maintenance is another cost that you will need to factor in and this is true of both used and new cars. Generally, older cars will need more work so this means that maintenance costs could be higher if you buy a used car. This still should work out as being cheaper and you can find high-quality used cars from trusted dealerships that will be roadworthy and not cause you any problems. Additionally, knowing how to do your own basic maintenance will allow you to keep the car in good condition and could prevent repair work from being needed.
If you are in the market for a vehicle for your business, then there is a lot to consider. Whether to buy new or used is one of the key decisions and this will depend on your needs and situation, but from a financial standpoint, it always makes more sense to buy a used car as these will be cheaper to buy and run and you do not have to worry about depreciation.
