When you purchase a vehicle for your business, you can save money in more ways than you think. Oftentimes, you aren’t just purchasing the car, you are making a commitment and there are other expenses to think about, like taxes and insurance. So, not only do you want to get a great deal on the vehicle, but you also want to save money on the peripheral costs. For example, you may think you are getting a great deal on a car, but what happens when your insurance rates go through the roof? What happens when your vehicle depreciates to the point where your vehicle goes from being an asset to being a headache? Here are five ways to save when buying a car for business purposes.
- Purchase a safer vehicle. A safe car usually means that the car is well built and you won’t have to deal with too many repairs. Maintenance may also be minimal. When you are purchasing a commuter vehicle, you want something that will start in the morning. You don’t want to purchase a vintage sports car and then be late to work all the time – all because your car wouldn’t start. Also, you may be able to get a more affordable insurance rates with a more durable vehicle. If you are looking for DC auto insurance quotes – or auto quotes in another state – you may be able to ask about special rates for safer cars.
- Always pay cash. When it comes to car buying, cash is certainly king. Not only will you not have to worry about credit fees and a number of other miscellaneous costs, but you can often get a better deal on the car. A car dealer will reward people who pay in cash with much better deals. Moreover, if you are going on a payment plan for your new vehicle, you want to pay your initial deposit in cash.
- Do your homework. You often don’t want to purchase the first vehicle you see at the first car dealership you visit. So, you want to make sure that you hit the pavement. You want to find the best deal that you can find, because you can use those offers as leverage to get a better deal at other dealerships.
- Do the math. Doing the math is important, because you want to know how much your vehicle will depreciate in five years down the line. In most cases, you can write off the depreciation value of your car. The depreciation value is basically the percentage of lost value over a certain period of time. Your accountant can usually work with you to map out your depreciation value and then apply it to your tax return.
- Visit a dealership at the end of the month. Most car dealers get antsy at the end of the month because they are getting closer to that point where they have to meet their commission quota. Yes, they will try to play hardball with you, but you will have the upper hand. Just get the ball in your court and you’ll have a much better chance of lowering the sticker price of the vehicle you are interested in.