From March 2020 to February 2021, people who opted for grocery delivery increased by 50%. This isn’t really a new trend: delivery and courier services have been steadily rising in recent years, with a 4.7% market growth annually from 2016-2020. More and more people are adopting delivery services for their convenience and efficiency, especially when their day-to-day schedule is filled up with family and work responsibilities. For businesses, this trend means that delivery is now an indisputable part of a positive customer experience that will eventually lead to profits.
Is it time?
Aside from being able to provide delivery services, business owners will know it’s time to get a company vehicle when they and/or their employees are constantly on the go for the business. It’s time to buy when the owner’s personal vehicle is more for business than personal use. Make sure, though, that there is enough cash flow, and that paying for the car won’t affect payroll, equipment purchases, or expansion.
Fit to a T
When buying a company vehicle, consider the size that’s apt for the service or product to be delivered. For instance, a landscaping company will need a heavy-duty truck, while a cargo or passenger van will serve a pastry shop well. If the business revolves around meetings, going from one place to another to source materials, or delivering food, a hybrid car would be the best option. Another thing to consider is how the car affects the business brand. The vehicle’s aesthetics represents the company branding, and may lead to gaining new customers.
What’s in it for the business?
Buying a car through the business has many tax advantages. Taxpayers may claim 58 cents for every business mile using the company car. If the vehicle has been in service between September 28, 2017 and December 31, 2026, the business will get a depreciation bonus every year until the vehicle has fully depreciated. A qualifying SUV or pickup is eligible for a deduction of up to $25,000. If the car was acquired through a loan, the interest is also tax-deductible. Another advantage is the unlimited advertisement gained by putting the logo on the car. It’s marketing that works for your business 24/7, and anywhere the vehicle is parked or driving through.
Running a business can be stressful, but having a company car that works for the business will make it infinitely less so. Delivering products and services will be a piece of cake with the right car.