When you’re in the process of starting up a new business, one of the key points that are at the forefront of any entrepreneur’s mind is to keep costs down as much as possible.
Whilst some people might be lucky enough to not need to spend any significant amount of money when they first set up in business, most people will have a number of tangible assets that they will need to pay for such as computer systems and office equipment, telephone systems, mobile phones, business cards and stationery, you get the idea!
Another asset that many new businesses need to pay for is transportation – namely, cars! A lot of new business owners tend to get roped into new car lease deals, being sold them because they are “better” for a firm’s cash flow. But the ugly truth is, you will end up spending more money in the long term – something which you really don’t want to do when your business is so young.
A much better alternative is to buy a car, but a used car rather than a brand new one. Some people might say that this isn’t promoting good money-saving, but actually it is; here’s why:
Modern cars are reliable
The thing about cars these days is that they are much more reliable than the cars of days gone by. Issues of reliability on modern cars are typically down to one of two causes – lack of regular maintenance (i.e. servicing), and manufacturer defects.
Whilst there isn’t much you can do about the latter other than getting your car repaired by a main dealer for free under the instruction of the car’s manufacturer, you can certainly do something about the former by following the recommended service and maintenance intervals to ensure your car’s longevity.
Have you ever wondered why the cars that taxi drivers use are so resilient? It’s because they properly maintain them; their cars are their livelihood, after all.
Used cars are cheaper than brand new ones
I know I am stating the obvious here, but it’s true; you only have to check out the hiltongarage.co.uk website to see what I mean!
Depreciation plays a big part in determining how valuable (or worthless) a car is in the future, so if you do your research well you can end up with a car that is not only cheap to buy, but holds its value well for when you want to upgrade in the future!
And even if your business could not afford to pay for a used car in cash upfront, there are plenty of sources for car finance and cheap business loans. This will give you the flexibility to spread the cost over several months or years, much like new car leases do, except that, at the end of the term, the car belongs to your business, not to a finance company.
There is a huge choice
I’m sure that, at some point, you will have gone online and checked out what used car offers there are.
Well, you will be pleased to know that the used car market is awash with quality vehicles that are suitable for all budgets and requirements, so you won’t have much trouble finding the car that’s perfect for you and your business.