When a company decides to purchase one or multiple business vehicles, there are several ways the company can go about this, some more cost-effective than others. As a small business, with less than five employees, you might want to choose company leasing, hire purchase or buying the vehicles from a dealership as a regular consumer. The latter is probably the least cost-effective method of purchasing business vehicles.
Here are a few tips on how to get the best deals when buying business vehicles.
Partner with a Fleet Management Company
One way of reducing the cost of buying business vehicles is to partner with a fleet management company. Their job is to handle purchasing and managing your business fleet. This is a cost-effective option for large companies however, this might not be the best option for a small company with a small team of employees.
Fleet management companies often have access to exclusive deals that the everyday business consumer does not have access to.
Fleet management companies usually have access to certain privileges such as:
Volume discounts
Typically, when you purchase vehicles in bulk, you would receive a discount on the initial price tag per vehicle. Usually, volume discounts only apply to high-volume purchases. Fleet management companies are highly experienced when it comes to negotiating volume discounts on behalf of businesses that need to purchase company vehicles.
Factory ordering
Factory ordering is where a leasing company or fleet management company orders the vehicles directly from the manufacturer as opposed to purchasing from a dealership. Ordering directly from the manufacturer has its perks because it allows you to customize your vehicles to your specific requirements. Purchasing directly from the manufacturer at source is a more cost- effective way of purchasing a business vehicle.
Exclusive Discounts
Fleet management companies can connect businesses to exclusive discounts that are not published online or offline. They can also connect you with an international dealer to provide you with the best possible deals.
Search Online
There are lots of discounted deals available online, the only downside is that it can be time consuming trawling through the Internet searching for the best discounts on your company vehicles however, with diligence and patience, you might just find some mouthwatering discounts.
Search on company vehicle classified advert websites and online dealerships that often offer huge discounts compared to the traditional vehicle dealerships.
Buy Used Vehicles
If you are on a tight budget, search for used vehicles instead of brand new. Even if you are working with a fleet management company, you could still reduce the overall cost by purchasing used vehicles instead of brand new ones. To avoid making costly mistakes, purchase vehicles that are less than five years old and make sure you thoroughly check the history and condition of the vehicle before purchasing it.
Consider Hire Purchase
Hire purchase is a form of finance where you spread the cost of purchasing a car over a fixed period of time. The car dealership will usually require a down payment of some sort prior to signing a hire purchase deal however, this will reduce the upfront cost associated with buying a business vehicle.
If you really want to reduce costs, consider purchasing slightly used vehicles on a hire purchase agreement.
Business Leasing
Many companies opt for business vehicle leasing because it reduces the costs associated with maintaining vehicles. Leased vehicles are usually replaced every two years allowing you to choose brand new or nearly new vehicles for your staff. Also, all repairs and issues are taken care of by the leasing company.
Go to Auction
If you want to drastically reduce the cost of purchasing a vehicle, auction is the place to be however, if you are not experienced or skilled when it comes to purchasing vehicles from an auction, it is best to go with someone who is more knowledgable or choose another cost effective way of purchasing a business vehicle.
Buy Bankrupt Stock
Many companies go bankrupt every day, some own vehicles and other assets that need to be liquidated in order to pay off their creditors. Bankruptcy stock is often heavily discounted and usually sold via auction or open sale. Search in your local business publications to find out where the closest bankruptcy stock sales take place. If you are new to purchasing bankruptcy stock, go with someone who is more experienced than you are.
Use Your Bargaining Skills
If you choose to buy a used vehicle or to purchase directly from a dealership, remember that you don’t have to accept the ticket price, you can use your bargaining skills to reduce the price. If you are buying several vehicles from a dealership for example, to avoid losing the sale, they would be willing to offer you a discount for purchasing multiple vehicles in one deal. Don’t be afraid to ask for a discount and stand your ground with the price you are willing to pay for the vehicles.
The most effective bargaining trick is to start low and increase your offer in small increments to get the best possible deal.
Summary
When it comes to buying company vehicles there are always discounts available. For a large or medium-sized company working with a fleet management company might be beneficial as they have access to exclusive discounts and unpublished deals that are often reserved for fleet management companies only. You could also search online for the best deal, although this might seem tedious, there are lots of deals to be found on the Internet.
If you are on a tight budget, buying a used vehicle might be the best option for you to choose. You can also choose to go down the hire purchase route, bankruptcy stock or buy your business vehicles at a vehicle auction.
Utilize the power of bargaining for a better price at the vehicle dealership and remember that vehicle dealers are more likely to give you a discount if you purchase more than one vehicle at a time.
