When you launch a business, you realize that there will have to be two versions of you – one for your private life and the other one for your business endeavors. Running a business also means that some tangible goods that you own will have to come in two versions, as well.
The most clearly separated groups are your private and your commercial vehicles. Buying both cars for business and personal purposes will require a deep insight into the worlds of finances and cars. So, what are the smoothest ways of obtaining car under company's name?
Sudden Cash, Loans or Borrowings? Businesspeople who want to start a successful business story have dozens of expenses at the very beginning of that mission. Although paying a car for your business needs with cash would be the least painful option, SMB owners can rarely afford such a luxury. Instead, they most usually ask for business loans and pay their cars in monthly installments. However, there is another option – you could ask a friend or a relative to lend you money for the car. Make sure that you negotiate all the terms and rules with him or her prior to the signing of a friend/family loan agreement. That way you could avoid high interest rates and make the whole business start easier.
Attribution - flickr.com/creativecommons
Straight from Manufacturers If your family members are either poor or simply cannot lend you any money, you could also go and try to make a deal directly with car manufacturers. Many car-producing companies have special offers for business users, where the conditions are much more affordable than the ones offered by banks.
Nevertheless, business owners who want to buy a vehicle this way should be aware that they will be required to deliver their profit/loss statement and the whole tax report, as well as financial statements from two previous years. Also, the chosen manufacturer will ask the credit union to send them their loan records, too. So, if you have already taken loans for your business beginnings, you might be rejected. Car manufacturers work (loan-wise) only with businesses that have meticulous credit scores.
Online Options Both new and second-hand commercial cars can be bought via the Internet, as well. Used cars are more often offered on the web. So, if your business needs do not include going 20,000 mi on a monthly basis, you could make a good use of a second-hand car, too. In case you would like to get a hold of such a car, check promising car auctions in the online environment.
You could find excellent cars for your own company at much lower prices here. Why is this so? Well, you make a deal directly with a car dealer and you can negotiate or even bargain about the price. However, be careful when buying used cars. Always go and check them in person and with a reliable mechanic. In addition, make sure that you and the seller formulate and sign a contract that protects both of you. Moreover, when buying a used car, always check the VIN, to make sure the vehicle is not stolen.
Every single cent is worth saving when you want to start your own company. Since having a company's car or a couple of them is a must, every businessperson will try to get the best vehicle at the lowest prices possible. So, if you want a loan, inspect the conditions with several banks and unions, as well as sellers of used cars. Also, do not overpay the car, but opt for the one that go hand in hand with your business needs.