Commercial Vehicle

Buying your first commercial vehicle is a big step for any small business. If you are about to go shopping for your first commercial vehicle, congratulations are in order. You need to be sure to choose the right vehicle, however, because buying the wrong one can be a pricey mistake and one that is hard to rectify. You should keep a number of considerations in mind as you shop, including what your needs are, how you will finance the vehicle and which discounts you might qualify for.

Assess Your Needs: The first thing you need to determine is what kind of vehicle your business needs. Do you need to find an economy sedan for zipping around to sales meetings, a delivery van or a rugged work truck? If you decide you need a car, you need to consider how many passengers it will normally carry and how far the car will usually have to travel. A small car might be the best deal financially, but it will not work if you expect to be taking four or five people to business meetings.

Likewise, any truck you purchase for business use should be able to handle the load you normally have to carry. You should look for a truck that will be able to handle your highest average load but no more. A truck that is too large will cost more in gas, insurance and maintenance than one that is properly sized.

Find Financing First: It can be a lot harder to finance a commercial vehicle than a private one. Many banks are hesitant to give loans to small businesses without a personal guarantee from the owner. Look for a lender that specialises in small business financing and get approved for the loan before you ever head to a dealer.

New or Used: Used vehicles are much cheaper than new vehicles and can often be a much better deal. If you are strapped for cash or just don’t want to pay the premium for a new vehicle, you should consider buying a used one. You need to be sure to get the service records and take the vehicle for a test drive before agreeing to purchase it. It’s also a good idea to have your mechanic look the vehicle over. In fact, you may even be able to find a vehicle that’s cheap enough to put through the books on your credit card.

Ask For Discounts: Manufacturers offer many different discounts and cash allowances, but you usually have to ask for them. Most manufacturers will give you a discount if you are buying several vehicles. Farm trucks often come with a cash allowance of at least several hundred dollars. Vehicles that run on alternative fuels may qualify for government incentives. There are many other discounts available, including ones for military service, new college graduates and first-time buyers.

Be Willing to Walk Away: Finally, as with any business deal, be ready to walk away if the deal isn’t right for your business. Emotions tend to get in the way of decision-making when it comes to purchasing a vehicle. Be conscious of your emotions and hold out for the best deal.

This article was contributed by David at CreditCardCompare.com.au, one of Australia’s top independent credit card review websites where each offer is reviewed comprehensively.