A business car is a vital asset that helps your organization streamline its operations and increase opportunities for growth and development. However, the high car maintenance and insurance costs, coupled with rising fuel prices, can lower your company’s profit margins so it is best to look for strategies to reduce the operating costs of the business car. In this article, we highlight five tips for saving money on your business car to improve your company’s profit margins.
1. Schedule routine maintenance
One of the most effective ways to save money on your business car is by ensuring consistent maintenance. Regular inspection and maintenance allow you to identify issues with your business car before they escalate into major, expensive repairs. Below are tasks that should be at the top of your business car maintenance to-do list:
- Change the transmission fluid, oil, clutch fluid, engine coolant, and brake fluid regularly
- Monitor your business car’s fuel efficiency to save money at the pump
- Replace the filters to maintain excellent gas mileage and engine health
- Get regular tune-ups
2. Hire experienced drivers
If you will not drive the business car yourself, take time to hire an experienced, professional driver. Experienced drivers have in-depth knowledge about safe driving practices, which can impact your car’s fuel efficiency. Adding a professional driver with a clean driving license to your team can also help you negotiate favorable insurance terms. This is because most insurance companies will likely reduce the price of your insurance premiums if the company includes an experienced, professional driver in its policy.
3. Negotiate better deals on vehicle insurance
Be sure to shop around to partner with the best insurance company. Partnering with a company with the best insurance rates can help you keep your car expenses at a minimum. The following are more ways to find the best deals on car insurance:
- Enroll in defensive driving courses. Taking up a defensive driving course does not only help improve your driving skills. Most insurance companies will likely offer a 10% discount for enrolling in defensive driving courses.
- Consider bundling. If your company runs a fleet of vehicles, consider taking insurance for the multiple cars with the same company. You could get up to a 30% discount.
- Add security features to the business car. Depending on the insurance company’s offers, your organization could reduce car insurance premiums by installing security features such as an anti-theft system.
4. Invest in quality tires
Investing in the cheapest available tires may seem like a wise financial decision as it enables you to save on the initial cost, but it is not. Cheap tires need regular replacing, which can be expensive in the long run. Worn-out tires could also hurt your business’s car fuel efficiency, so it is best to purchase quality tires to lower vehicle expenses.
If your business does not involve a lot of travel, consider selling the business car and leasing instead. While you may have to deal with renewal plans and restrictions, leasing a vehicle is often less expensive than owning one. This is because you do not have to deal with ongoing maintenance. You will also not be concerned with vehicle depreciation when you lease a business car.
Reducing business car expenses is critical to achieving your company’s bottom line. Invest in quality tires, hire experienced drivers, and schedule routine maintenance to save money on your business car.