12 February 2016 ·

5 Top Tips for Buying a New Company Car

5 Top Tips for Buying a New Company Car

Our fleet team are bursting with expert advice on how to spot a good purchasing opportunity when it comes to choosing the right company car or fleet for your business. 

The most cost-effective car can rely on a number of factors and in most cases should be tailored to suit the business. Our fleet team has a few tips to use as a checklist to make the process smoother for businesses of all sizes and industries.

1. Plan Ahead

Be sure to consider the lifespan of your vehicles. Choosing the right specifications ensures you’ve got the best options and fit-outs inside your cars to suit your employee’s needs.

If you are buying the car outright, you’ll need to weigh up the best options in terms of your insurance span, and the lifespan of the different aspects of the car itself.

2. Whole life costs

The last point brings us smoothly onto the whole life costs of a fleet. When you know how long you will be using the fleet and the likely life-span of each car’s different features, then you can plan the whole life costs.

The whole life costs look at the entirety of a fleet’s life span looking at a number of factors including fuel, depreciation over time, insurance and CTP, service and maintenance, rego & duties, service maintenance, and interest over time.

The pie chart below gives you a full break down of these whole life costs over four years.

3. Resale Value

An important factor to consider when looking at your purchasing opportunities is the fleet’s resale value. What’s often not considered is that much of the overall whole-life costs can be reduced if you know what the resale costs will be.

You’ll need a fleet that can guarantee the quality of each individual part remaining high enough that you’ll get more bang for your buck when selling.

4. Think Green

Your first thought here might be: “well, green is more expensive, how can that possibly be more cost-effective.”

If you combine the fuel used per cost of fuel, on average a green car usually works out a lot cheaper. And not only are you saving money but you’re also helping to give your company a more green-sheen.

But don’t worry, if you need a bigger car with a bigger engine then there are always other ways to save money on the cost-effectiveness of fuel per kilometre.

5. Insurance

Anything can go wrong during the most important parts of a working day and that’s why you’re going to need insurance that lasts a long time and also provides enough protection at a cost-effective price.

A big mistake that buyers can make is assuming that just because a car is small it won’t require as much insurance, however, there are plenty of small cars with a turbo-charged fuel-guzzling engine. Look at each element of the car carefully when considering which will have the cheapest insurance with an effective payoff.

Our Fleet Team at Terry Shields Toyota can advice on corporate car and fleet choices for all types of vehicle, industries and sizes of business. We value building lasting relationships with industry professionals and giving tailored personal advice.

Get in touch today to see how our fleet team can help your business.