Why Business Owners Should Take Advantage of Second Hand Cars

Zak Goldberg |

Image via Helgi Halldórsson/Flickr CC

In today’s day and age, many industries rely very heavily on their employees travelling around. This could be to attend client meetings, to visit different branches, for conferences or simply as part of the service that you provide.

As you would for buying a car for personal usage, you will always want to shop around and find the best deal on the automobile to save money. With this in mind, any business owner should first look at the used car market for vehicles to add to their fleet.

Financial Benefits

The main reason that it is best to look for a used car is the fact that it will be significantly cheaper than buying new. This allows businesses to buy a better automobile that is suited to theirneeds and also avoid depreciation. Cars can drop in value as much as 40% after the first year of ownership, so buying second-hand enables a business to sidestep this and not take such a large hit if/when they look to sell the car a few years later.

In addition to this, it is also cheaper to insure a used car as the value is much lower than that of a brand new one. Finally, you can avoid a lot of fees when you buy a used car so it is usually the smarter financial move to make.



Tax Benefits

If you provide company automobiles and fuel to your employees, you could avoid paying tax if the car is only used for business journeys or if the vehicle is adapted for a disabled employee. If the vehicle is provided as part of a salary sacrifice arrangement or it is used for personal trips, you will have National Insurance and reporting obligations. Therefore, buying used cars to add to your fleet and only using them for business reasons can be very beneficial for companies in many industries.

Choice

Another reason that business owners should take advantage of used cars is the fact that it is such a gigantic marketplace. The rise of online dealership like PG Motors has allowed people to browse cars for sale up and down the country which opens up many more possibilities. For business owners, this means that they can find an automobile that fits the purpose, is of the highest quality and for an affordable price.

Things to Keep in Mind

Although the internet makes it easy to find these cars, it is always important that you still view the car in person and always buy from a reputable seller. You should carry out a thorough inspection of the automobile, take it for a test drive and get a vehicle history check carried out. This will all ensure that you are getting a high-quality automobile for a fair price.

Company cars can be incredibly valuable to businesses in many industries. Creating a fleet can be extremely costly, which is why it is always best for a company owner to browse the huge second-hand market to find exactly what they are looking for at a fair price. With a little patience and effort, you should be able to find the perfect car for your company.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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