Purchasing Company Vehicles: Buying New or Buying Used
For construction companies, buying vehicles brings up one of those enduring business conundrums: whether to buy new or find a “reliable” used vehicle for a deal. Should you buy new from a dealer, order directly from the factory, or buy a used vehicle and pray for the best? There are good arguments on both sides, but no one solution fits all construction companies. Ultimately, you will need to analyze your own situation and decide for yourself which vehicle buying process will best fit your company’s needs.
Let us start by looking at what buying new can offer:
3 reasons to buy a new vehicle:
- Increased core business efficiency. The most obvious advantage to buying new, is that it streamlines your process and allows you to focus more completely on your core business. Reduced time and resources spent searching for a vehicle can save your company significantly. Ordering directly from the factory will ensure you get the exact vehicle you need with no added features. These unwanted features can add thousands to the purchase price. This process can be completed without ever leaving your desk and can result in a significant increase in productivity and profitability from your company’s core activities.
- Association Incentive Programs. Members of participating BX locations have access to one of the rarest incentive programs General Motors has ever written. The 2018 Builders Exchange General Motors Competitive Assistance Program. Unlike other programs, members do not need to be recognized as a “fleet” customer. Meaning a customer operating with 15 or more vehicles or a customer that purchases five or more vehicles within a calendar year. General Motors has three levels of incentive pricing. Retail, Fleet, and CAP. CAP pricing is the top tier pricing, better than retail or fleet incentives, and is usually only granted to companies who purchase at least 15 vehicles per year. WITH THE BX PROGRAM, YOU GET THESE INCENTIVES WHETHER YOU HAVE 1 VEHICLE OR 500!
- Risk reduction. Let’s be honest, construction vehicles are a tool and are typically treated that way. By purchasing new, utilizing the BX CAP program, you wipe your hands clean of powertrain issues and roadside assistance. Each vehicle is issued a 5 year/100,000-mile powertrain warranty, 5 year/100,000-mile roadside assistance, two free oil changes/inspection/rotations, 5-year basic OnStar services including app for lock/unlock, and WiFi equipped vehicles if ordered with OnStar. Enabling you to track vehicle statistics, gas mileage, oil health, and how the vehicle is being driven with ease. This allows you to identify and address potential problems and inefficiencies sooner, or avoid them all together. For many companies this in itself is reason enough to seriously consider buying new.
Questions to ask yourself when deciding whether or not to purchase new:
- What are the numbers?
- How many vehicles do you have?
- How are the vehicles being utilized?
- How many miles are the vehicles being driven a year?
- Take into account how much time is being spent on maintenance, how many employees are involved, and how much money it is costing the company in the long run.
Best of Both Worlds: Sometimes, the best solution is to choose not one option, but two. Buying new for the majority of your vehicles while continuing to purchase used when you find an incredible deal on a reliable used vehicle. The combination still gives you the option of having more well- equipped vehicles and less time and money spent on maintenance.
Whichever option that you choose, remember that it directly effects cost and your bottom line. Do not neglect to review your processes and often re-evaluate your options before the needs arise.
Contributed by Momentum Groups, administrators of the GM CAP Program and the ComData Fuel Card. If you need more information or want to know how Momentum can help you with either, please contact Eric Pratt at Momentum at 216-372-1973 or firstname.lastname@example.org.