As massive as the automotive market is today, choosing the right company car can be a mind boggling experience. There are many concerns to address before purchasing: Should the company reimburse you for expenses related to the business? How should mileage be deducted? Is it worth buying one? There is a multitude of factors to bear in mind before spending your hard earned business cash. Note that the type of vehicle you purchase will depend on your situation. Read on in order to make sure you’re making the correct decision.

1. Lease or Buy?

This is the first thing you must deliberate on. Leasing could be a viable option when there is little or no cash to buy one. Leasing is also a good choice because all costs including repairs, maintenance, roadside assistance and more are included in the monthly fee. When it’s time to get rid of the car, the hassle of reselling is also eliminated. The downside is, if you decide to purchase the leased car at the close of the lease, you will spend more than you would have, had you bought the car in the first place.

2. The Driver

Who is the designated driver of your company car? If any of your employees have bad records, your insurance rates and total liability exposure could be affected. If you plan to add coverage for your employees, the insurance rates will automatically go up. The rates could also fluctuate if your employees will drive their own vehicles for business purposes. Allowing your employees to drive for business purposes means you assume extra liability. Make sure to get adequate coverage for any incident that might occur to a third party using your company vehicle.

3. The Car Should Match Your Company’s Image

Your company car has to reflect the image of your business. The right car can impress business partners and clients. In fact, it can be a deciding factor when sealing a deal. Driving a stylish model, for example, can give the impression that your company is successful and therefore trustworthy to transact business with. Projecting the image of your company begins with the type of company car or fleet you keep. You might even consider putting a vehicle wrap on your car in order to display your logo and advertise on the road.

4. Familiarize Yourself with Taxes

Every country has its set of regulations. In many parts of the world, businesses that have company cars are compensated under taxable or non-taxable reimbursement plans. When considering the total cost of ownership, it is necessary to provide employees that have high-mileage needs with a company car. Take a good look at the car’s CO2 emissions. Cars with high levels often face harsher regulations. Insurance rules also vary widely. However, there are cars that come with lower-cost insurance due to their efficiency and good gas mileage.

Before making a decision of buying a company vehicle, explore these four aspects. You might consider reaching out to a dealer like Woody Sander Ford if you have questions about how buying a company car differs from a personal purchase. The most crucial factor in selecting the right company vehicle is how it matches with the needs of your business.