Purchasing a new business vehicle online is probably the best way to buy. As a matter of fact, one can take comfort in the fact that he or she can complete most of the steps from home, and will be able to avoid shady salesmen on the lots.
How can a person do this? It can be made easier by simply following the steps outlined here.
1. Stay on Budget
When a person is financing a car, he or she must keep in mind the amount he or she has available for a down payment and the limit of what he or she will be able to pay each month. After one gets a handle on what is affordable, he or she can then take a look at what autos cost in different segments.
Also, if applicable, one should research his or her vehicle’s trade-in value.
2. Conduct Research
First, people should look for specific vehicles that meet the needs of their companies, such as delivery vans for couriers, or SUVs for transportation services. If one needs to haul goods long distances, he or she should opt for automobiles with great gas mileage.
After business owners assess their organizations’ vehicle needs, they can take the time to compare makes and models, along with trim levels. Anyone can easily find in-depth reviews and comparisons on sites like Kelley Blue Book, Motor Trend, and Auto Trader, or online car shopping sites like Autotempest. They list the miles per gallon, horsepower, cargo space, warranties, and safety ratings of comparable vehicles.
Some folks also scope manufacturer sites for side-by-side comparisons between different models, along with price variations.
3. Find Deals
Many times, a manufacturer introduces a model that is not as popular as it was projected to be, and this means that dealers may have far too many of them left on the lot. Or, it could be really late in the model year. Either situation could mean a reduction in price, a subsidized lease, or cashback for the buyer.
Sometimes in order to match your current fleet, you may consider widening your search scope to include deals from sellers in other states. Matching new vehicles to your current fleet is necessary to build brand awareness in your local market.
In order to ensure that you find quality deals when matching vehicles to your current fleet, you may need to look for car shipping companies that can deliver these vehicles to you once purchased. Some of the best car shipping companies will be able to pick up your vehicles from anywhere in the US, and have it delivered to your headquarters. With added options such as enclosed trailer shipping and expedited delivery, you can count on reliable transportation of new vehicle purchases without going over budget.
4. Pre-qualify for Financing
Dealerships will try to offer their own loans, but there are better choices for getting financing under a business’s name.
There are so many options to consider for loans, such as banks, credit unions, and private lenders. Business owners just need to remember, any lender will want to examine a company’s financial documents as part of its consideration.
If entrepreneurs secure online financing in advance, they can even ask the dealerships, in the future, if they can compete with the terms set forth in their loans.
5. Know All Credit Scores
Company owners should look into their business credit scores by checking with multiple bureaus. They may have to pay between $37 and $100 to check, but they will know what they are working with. If a business must limit itself to one bureau, it is best to use Dun & Bradstreet.
Scores can range between 0 and 100, but a solid 80 is more than adequate to qualify for an auto loan. Lenders are also likely to check entrepreneurs’ personal credit scores from Experian, TransUnion, or Equifax, as well, so they should look them up, too.
Low scores do not necessarily mean owners will be denied a loan, but their interest rates will be significantly higher. However, if their business credit scores are actually considered to be too low, they can sign a guarantee with the lender. This means they are personally responsible if their businesses can’t make payments.
6. Find a Commercial Dealer
Company owners should look for dealerships that specialize in selling vehicles to businesses and organizations. Such dealers will make it much simpler for their companies to purchase vehicles because they understand all the paperwork involved.
They should also speak with an Internet Sales Manager. They work exclusively with customers that ask the dealership questions online instead of face-to-face. Their particular expertise is working with consumers that have already done their proverbial homework on the web and are ready to buy.
7. Test Drive All Top Picks
Walking into a dealership should no longer be intimidating for the business owner. He or she can explain to anyone who asks that he or she already has financing and has made up his or her mind. The customer just wants to test his or her top choices to see how they feel and drive.
Remember, with all the legwork done over the internet, buyers can shop multiple dealerships for the inventory they looking for. They don’t need to be loyal to just one.
That said, when test driving, a buyer must be honest with him or herself. Is the auto comfortable? Can he or she adjust the seat to see out, access all controls, and reach the pedals? How does it drive and brake? Does the vehicle look as attractive in person as it did online? A decision must be made.
8. Pick the Vehicle Up
If the buyer is satisfied, then this would be the time to sign the paperwork, and much of it can be completed electronically now, meaning digital signatures are perfectly acceptable and legal. If one is a traditionalist, he or she can simply sign all papers at the time he or she is scheduled to pick up the car.
9. Purchase Insurance
This can also be easily done online. Just note, if the car is being used for business purposes more than half the time, one should buy commercial auto insurance. One can use personal auto insurance if the vehicle is only used for business part of the time.
10. Register the Vehicle
As a business car, this must done in the company’s name. Some states may require Articles of Organization or Incorporation in order to do so.
11. Continuously Make Payments
Lessees need to use their businesses’ bank accounts to make monthly payments on company car loans. The IRS may look into any payments made from personal accounts as a sign of fraud. That said, business owners may be able to claim their company cars as deductions on their taxes if they are paid for from a business account.
Shopping online for a new business vehicle is simple, quick, and free from the haggling many expect from the car-buying experience. By using the online tools available to you, you can even have car reports printed out so you can get to know that your a making a quality purchase. As a business owner, you may enjoy the advantage of doing everything on their own terms.
