Should You Buy a Used or New Vehicle for Your Business
When your business requires that you buy a vehicle it can seem to be an overwhelming decision.
One of the major things you will need to consider is whether or not you should buy a used vehicle or a new one. There’s a lot to consider when you need to make this type of decision. Let’s take a look at some of the pros and cons.
Initial Cost and Budget
- New Vehicles
You’re going to have a higher upfront cost when you buy a new vehicle. This is something that you need to consider based on your budget seriously.
If you are a startup or a brand new business you might not have that much going for you in terms of funding and this can dent your finances in a major way.
- Used Vehicles
The most attractive benefit of going with a used vehicle is that you will have a significantly lower initial cost. This means that you can keep money and use it for different parts of your business.
You will not need to sink all your money into a vehicle upfront. However, unlike a newer vehicle if you do need financing options, you’re going to find that your interest rates are higher.
Maintenance and Reliability
- New Vehicles
Since the vehicle is new its going to come without warranties that cover major repairs and maintenance for the first few years you have the vehicle.
However, you’re still going to need to buy any accessories that you may need. For example if you buy a business truck, you’re going to need bed liners to help protect the truck bed from damage by abrasive cargo, you will need anchors to secure cargo so that it doesn’t shift during transit, and a Brumleve tarp bow kit to keep items as secure as possible on the truck.
- Used Vehicle
If you buy an older vehicle there is going to be a lot more maintenance issues but this will only be exorbitant if you buy what is called a “lemon”. If you buy a high quality used vehicle you won’t experience the same benefits and savings as you would with a new one, but you should get some great service out of the vehicle nonetheless.
Depreciation and Resale Value
- New Vehicles
As soon as you drive off the lot with a new vehicle the depreciation starts to hit it. It’s going to be a major drawback if you plan to sell the vehicle in a short space of time. Once you get over that initial depreciation bump, new vehicles tend to have a higher resale value.
- Used Vehicles
A used vehicle it’s going to lose even more value with time. However, if reselling it is not even on the table for a very long time then it might be worth it to get this for your business. There’s a lot to think about here and it can make you scratch your head a little but think it out to make great choices for your business every time.
