Auto Insurance: Tips on Buying a New Car for Your Business
Emily Sperry January 08, 2020
When it comes time to choose a new vehicle for your business, you will have the option to either lease a vehicle or buy one new or used. Many people find buying a new car to be the best option as it provides them with the latest safety features, better onboard technology and greater fuel economy. However, with so many makes, models and dealers to choose from it can be difficult to know how to go about purchasing a new vehicle. To help make the process of buying a new vehicle for your business as simple as possible, here are a few tips to follow when buying a new car.
Consider What You Do and Don’t Like About Your Current Car
Your first step when searching for a new car would be to determine what kind of car you want and what features you would ideally like it to have. A great place to start when trying to decide what you want your new car to be like is to think about what you do and don’t like about your current car. Do you like your car’s size or do you want to go bigger/smaller this time? Is fuel economy a priority to you or is having the latest technology more important? Deciding what you want in a car can help you to narrow down your options moving forward.
Consider Your Budget
Once you have a general idea of what you want your car to look like, you will need to consider your budget before you start looking at specific models. The fact is that car prices are on the rise and the average car purchased in the U.S. in 2019 cost $36,718 at an average interest rate of about 6%. You should then think about what you can realistically afford to spend on a new car and if you plan on financing your new vehicle you need to think about what monthly payment you can afford based on current interest rates. Determining a realistic budget can help point you toward a specific class of vehicles based on what you can afford.
Do Your Research
Your next step will be to begin researching car brands and specific models as researching vehicle specifications can help you to find the right car for your business based on your wish list and budget. It can be helpful to research vehicle reviews, customer satisfaction with specific brands and safety ratings as you try to make your final decision.
Once you have a make and model in mind that you think will be a good fit for your business, you will next want to research local dealers to see where you may have the best chance of finding a reputable salesperson who can provide you with a good deal. You will also want to research the pricing of your desired vehicle before visiting any dealerships, as this will allow you to see what others have paid recently for your vehicle. This can also give you a chance to compare prices, giving you leverage as you try to barter with your preferred dealer.
Investigate Financing Options Before Going to The Dealership
You may also be able to save money by researching financing options and getting pre-qualified for a loan before you speak to a dealer. The fact is that dealers often make a large portion of their profit on financing and you may be able to find a better deal by going through your bank or credit union. Having a pre-approved financing offer already when you meet with a dealer can help you to find the best deal as it can give you leverage to negotiate with the dealer for a better financing option.
Talk to Your Insurance Agent Before You Make a Purchase
Of course, before you purchase a vehicle it is important that you talk to your insurance agent to find out how much it will cost to insure the vehicle you intend to purchase. The cost of auto insurance can have an effect on your overall budget and you will want to ensure that you can realistically afford to insure the vehicle you are considering.
If you are considering purchasing a new vehicle for your business, contact us to find out about business auto insurance options and the policies that you should consider investing in for your new vehicle.