Countless companies in a variety of industries rely on commercial vehicles daily. Some companies use cars to visit clients and deliver demonstrations. Others use vans to provide clients with technical support, or transport crucial goods between locations. Some organizations even rely on huge lorries and freight trucks for logistics processes. However, as valuable as a business vehicle can be, it’s also an expensive investment for any company. Jumping in and deciding too quickly could mean you waste money on a solution that doesn’t really serve your business needs. Today, we’re looking at some of the most important factors any business leader should consider before purchasing a new vehicle for their fleet.
How You’ll Use Your Vehicle
First, it’s important to understand exactly what the purpose of your new vehicle is in your business. You don’t want to blindly get a small business loan without understanding in detail the dollars and cents that you will need as it pertains specifically to vehicles. There are many kinds of commercial vehicles out there, and not all of them will be suitable for every use case. An environmentally friendly sedan might be ideal for visiting customers, but it won’t allow you to haul equipment between warehouse locations. A high-quality truck will be ideal for transporting goods but may not be a lucrative investment if you’re only visiting clients and trade shows. Decide exactly what the purpose of your vehicle is going to be and make a list of its required features. You can think about:
- The size of the vehicle and it’s hauling or load capacity
- The fuel consumption and how much it’s going to cost to operate
- The skills and certifications required to drive and operate the vehicle
Your Business Values
Once you know how you’re going to be using your vehicle, it’s important to think about some of the main factors that may drive your purchasing decisions. While the price of the vehicle is important, you may have other priorities too. If you’re trying to build a reputation as a sustainable company, you might want to focus on fuel-efficient and environmentally friendly vehicles. Electric vehicles can reduce your company’s carbon footprint and minimize fuel expenses in the long-term. If you’re relying on your vehicles to help promote your company, you might want to think about how each asset looks, and how it will reflect on your brand. It’s also worth thinking about factors like fuel efficiency, operating costs, and maintenance expenses.
The Current Market
Now that you have a clear view of your priorities when purchasing a commercial vehicle, it’s time to start assessing the market. While it can be complex and time consuming to compare all the various options available to your company, this step shouldn’t be overlooked. The more time you spend researching your fleet vehicles, the more likely you are to make a choice that drives the best ROI for your company in the long-term. There are helpful guides online that can help you to understand how to research the market and collect the best data for your decisions. Follow these guides carefully and focus on determining how each type of vehicle will impact your company’s profitability and productivity.
Your Budget and Total ROI
While it’s tempting to make decisions based entirely on price, particularly when you’re running a small company, budget is only one of the things you’ll need to consider when buying a vehicle. It’s important when looking at budget to think not just about the cost of buying the car or truck. Consider the overall operating costs for the vehicle, such as average fuel costs and maintenance fees. Think about the potential return on investment for your vehicle and how you’ll monitor the impact the asset has on your company. Fleet management and analytical tools can give you an insight into the total cost of ownership for each of your assets, so you can determine which solutions drive the best ROI.
Making the Right Choice for Your Business
Ultimately, there are several different factors business leaders need to consider when investing in new vehicles for their fleet. While the process of making the right decision can be time-consuming, committing to the right level of due diligence is important. Considering all the factors above, not just your budget, can ensure you can invest in a vehicle that delivers the best value to your company.