2020 has seen businesses of all shapes and sizes, operating across all industries and fields of specialism, having to radically alter their operations and working protocol in order to get by.
The coronavirus and Covid-19 pandemic has swept across the world and governments in the vast majority of countries have had to implement measures, rules, restrictions and guidelines in a bid to slow the spread of the virus and keep the R rate down.
Chances are you’ve switched staff who can work from home to remote positions, altered any commercial premises that are staying open to adhere with guidelines and have taken many other measures.
One question that many businesses are asking themselves right now is about whether a car could help their company out.
For the past few months, the use of public transport has been restricted and a company car really could prove to be a good investment that could keep you and your workers as safe as possible.
Of course, you need to put the cost at the forefront of this decision-making process.
Cars, regardless of what kind of car you invest in, don’t tend to come cheap. Here are a few costs that you should remember to factor into your budget before taking any further action!
The Cost of the Car
Let’s start by considering the cost of a car itself. This is likely to be the most expensive outgoing attached to a company car.
Seeing as most companies never buy vehicles outright, you’re likely to find yourself entering a finance agreement that covers the cost of the car, or the cost of the depreciation of the value of the car, plus interest over a number of years.
You are then likely to trade the car in for an upgrade at the end of its contract. If this is what you plan to do, make sure to shop around.
Different providers and sellers will offer different interest rates, which could radically alter your business’ profit margins. Don’t settle until you find the best deal.
Insurance
Another cost you’ll have to factor into your budget is insurance. All vehicles need to be insured in order to take to the roads.
So, consider who’s going to be driving the vehicle and get quotes for all necessary drivers. This could include yourself, staff members and anyone else who will need access to the vehicle for business use.
Again, you’re best off comparing prices from a number of different providers to find the best insurance for your company vehicle.
Remember that company cars and company vans may require different types of insurance. You can take out van insurance, here.
Vehicle Maintenance
Another cost to bear in mind is maintenance costs. Vehicle maintenance costs can vary from spare parts to replacing a tyre, replacing brake pads or anything else your car might need to keep up and running.
Generally, these costs are unexpected. So, you need to keep money aside for them – just in case.
Company cars are growing more valuable by the day. So, take a look at costs, figure out your budget and invest in yours as soon as possible!
