The process of buying a commercial vehicle is very similar to the purchase of a personal car, but each step is a little more detailed. This section will look at those details so that you can be prepared when making your commercial vehicle purchase.
Know What You Need
Each state has different regulations on commercial vehicles. These rules determine what a commercial vehicle, and if it is a legal requirement. In some cases, a personal vehicle can be for in business, depending on how much it is used. Check carefully with the Department of Motor Vehicles in your state to determine your specific needs.
If your business is established, you probably have a good idea what your needs are in the way of commercial vehicles. But, if you’re just getting started, that won’t necessarily be the case. Commercial vehicles are comprised of a very large and diverse group of vehicles. Delivery vans, a small fleet of service trucks, tractors, cement mixers, the list goes on and on.
Carefully consider what kind of vehicle is required for your business, and how often it will be used to determine the licensing that the state may require.
Insuring Your Commercial Vehicle
Standard liability policies will not cover a commercial vehicle. You will need a policy specifically for a commercial vehicle, and they are typically more expensive than standard car or truck policies. Shop your insurance policy carefully. Fortunately, the internet allows you to compare many options of coverage and providers with just the click of a mouse.
Once you have a good idea of the coverage you need, speak directly with an agent about it. They may know of options for better protection and/or discounts that you may not be aware of.
How to Pay For Your Commercial Vehicle
As with any vehicle acquisition, you can finance, lease, or pay cash for a commercial vehicle. Each of these options has its pros and cons. Consider carefully before making a decision.
Buying a commercial vehicle outright can save a considerable amount of money at the time of purchase and may even save you money on your insurance. Also, once you hold the title on a commercial vehicle, any depreciation or maintenance costs are tax deductible.
If your business doesn't have the capital on hand to buy the vehicle outright, financing or leasing can be a better option. Lease payments and interest can also be tax deductible in certain cases.
Choosing a Dealership
Shopping for a commercial vehicle is a little bit different than for a personal car. Some dealerships do not sell commercial vehicles, or may not sell the type that you need. Once you know exactly the type of commercial vehicle you need, research it online to get a good understanding of the cost associated with that kind of vehicle. This will give you a good idea of where to start when negotiating a price.
Next, you need to find a dealership that sells the type of vehicle that you need. A dealership that specializes in commercial vehicles may be able to offer better price incentives, especially if you are considering buying more than one vehicle.
Lastly, negotiate your price before you ever start the financing process. These are two completely different tasks that will require your full attention to ensure that you get the deal that you need.