Tips for buying a vehicle for your small business

Business vehicles come in all sorts of shapes and sizes. To work out what kind of vehicle is most suited to your business, consider asking yourself the following questions:

• What kind of locations will the vehicle be used in?
• What am I using the vehicle for?
• Will the vehicle be transporting people, tools, or products?
• How much weight will the vehicle need to carry?
• Where will it be parked after hours?

Remember, just because you’re purchasing a vehicle for your business, it doesn’t mean you have to buy something new. A second-hand vehicle may be perfectly acceptable for the functions you need to perform, and a more affordable option, too. It all comes down to the type of business you’re running, the image you need to maintain and the way you intend to use the vehicle.

If you do decide to purchase a used vehicle, you should run a security check against it on the Personal Property Securities Register. If a vehicle has a security interest on it, it could be repossessed from you even though you’ve paid for it, which could leave your business in a vulnerable position. To run a check:

1. Head to PPSR Car Check.
2. Enter the Vehicle Identification Number (VIN) of the car you intend to buy.
3. Enter your email address.
4. Pay $2 for your search using a credit or debit card.

Sometimes buying a new vehicle means waiting a little longer due to supply chain delays. Some models have a shorter wait period than others, so ask the dealership ahead of time how long it will take for the vehicle to be delivered and plan your operations accordingly.

Beyond the initial purchase price of the vehicle, you’ll also need to budget for how your business will afford ongoing operating and maintenance costs. Here are a few to keep in mind:

• Servicing and maintenance costs
  Just like a personal vehicle, a business vehicle needs to be regularly serviced and maintained to keep it operating as it should. If your business deals in transporting people, you may also need to budget for regular cleaning.
• How much you’ll need to pay for insurance
  Insurance can help your business stay on the road in the event of something going wrong, such as damage or loss of your vehicle due to theft, fire, flood, storm or a malicious act. The price of motor insurance can vary, depending on the vehicle and level of cover you choose. Getting a quote online can help you estimate how much you may need to budget.
• The price of petrol
  Understanding fuel efficiency can help you determine how frequently you’ll need to top up, and how much that could cost your business. The Green Vehicle Guide website has some great tools and resources that can help with this.

Along with setting up your budget, consider what records you need to keep for tax purposes.