There’s no doubt that first impressions matter. This extends beyond your own appearance and how you present yourself to what you’re driving too. The big three German manufacturers, BMW, Audi, and Mercedes-Benz, have long represented the kind of luxury people expect from a successful businessperson’s car. This kind of quality doesn’t come cheap, though, and for those running a small business on a tight budget, it’s often an expense that can’t be justified. So how can you still drive that luxury car that conveys an aura of success without having spend a fortune. Here are few options you can consider:
Leasing
Leasing a vehicle works much like an extended rental. Rather than owning the car for a short period of time, though, these deals usually operate over a 12-48-month basis. You choose a contract length that suit’s your current requirements and an annual mileage, typically 12,000 miles per year. Going over this limit will result in what are known as excess mileage charges so it’s important you have a reasonable expectation of what your driving habits will be over the next few years. At the end of the contract you can decide to renew your existing deal, though many look to instead lease a different vehicle. With this kind of flexibility, you can ensure you’re always driving the latest model in the showroom floor.
Hire Purchase
If you’re interested in owning a car outright eventually, you should consider a hire purchase. This will require you to make an initial deposit relative to the vehicle’s current value. This is usually between 10-20%, though the fee is negotiable. At the end of this contract you’ll own the vehicle outright, and you’re free to do with it as you please. While this will require you to part with what could be a significant part of resources up front, completing the transaction over monthly installments can help to ease the effect on your business. You will have to consider that the vehicle will have significantly depreciated in value by the time the contract is complete though. If you’re committed to choosing this option, research the used market for similar models to get an idea about how much your asset will be worth.
With so many other aspects of the business to worry about, having to also worry about your vehicle depreciating in value is just another headache. Leasing your car from a lender like Select Contracts allows you to consolidate your cash flow more evenly and ensure your business has all the funding requirements in needs during the contract period.
