Following a slow couple of years for commercial vehicles resulting from the commencement of the pandemic in 2020, the industry is once again in recovery, with around 23.2 million vehicles having been manufactured in 2021. From vehicles intended to transport passengers to light commercial ones, a plethora of vehicles is helping companies achieve their goals. If you are considering creating a small commercial fleet (or simply leasing or buying a company car), keep the following considerations in mind.
Considering Different Financing Options
Deciding whether to buy or lease a car is one of the most important decisions you will have to make. Both arrangements have their respective pros and cons. For instance, monthly payments on a leased vehicle are usually lower, because you are not paying back any principal. Rather, you are simply borrowing and repaying the difference between the vehicle’s initial and residual value. Leases often include free maintenance. The downside is that lease contracts can specify a maximum number of miles you can drive the vehicle per annum. Moreover, you are bound by the agreement and cannot simply change a car when you tire of it. However, buying a car is only a smarter choice if you are able to pay for your vehicle upfront. If you take out a long-term loan, however, you may end up paying more than the car is worth because of the interest. To work out the best option, you need to crunch numbers, work out how many miles you will be driving, and calculate the total amounts you will be paying for each option.
It is important to read consumer ratings that represent owners’ authentic experiences driving the vehicles you are interested in. This is especially the case if you are buying a relatively expensive vehicle or a type of vehicle you have never driven before. Large heavy duty trucks are comfortable and practical for carrying large loads; they’re also easy to get in and out of for passengers. The more powerful the vehicle, the more fuel it is likely to consume as well, so fuel economy is yet another vital consideration to keep in mind. Customer ratings are an excellent way to discover the relative strengths and weaknesses of the vehicles that have made it to your shortlist. They will also inform you regarding the relative safety and security of different models.
Electric or Fuel-Powered Vehicles?
If you or your staff will be racking up thousands of miles yearly on the company vehicle, then an electric vehicle will save you thousands of dollars on fuel and maintenance costs. Surveys indicate that the price gap between electric and gas-fueled vehicles is expected to experience a big reduction thanks to continual improvements in battery technology. Currently, you can already enjoy a federal, non-refundable tax credit worth up to $7,5000 for electric vehicles manufactured after 2010.
Whether you frequently deliver goods or you cover large distances in your business, it may be time to purchase your first business vehicle. If so, make sure to choose a financial option that works best for your specific financial situation. Read consumer ratings on a shortlist of models and think about the many benefits that going electric can bring.