Adding a company car to your fleet is a huge investment, so it is vital for business owners to take their time and make sure that they are picking the right car and that they are fully protected. A business car can help a business to be more profitable, but it can also be costly if you are not careful.
Protection with a Warranty
One of the most important aspects for business owners to consider is the warranty, which (in its most basic form) covers the cost of mechanical and electrical issues. The original manufacturer’s warranty usually only lasts three years or 60,000 miles (although this can be longer), after which you will want to arrange an extended warranty. Otherwise, it will be down to you to pay for the costs of labour, parts, recovery, a replacement vehicle and more. A comprehensive car warranty will cover all of these costs and more, which could save you a huge sum – it is for this reason that it is a good investment for any business.
Mechanical & Electrical Faults
An extended warranty is an optional insurance policy, but most professionals would agree that it is a smart one. A car can encounter mechanical and electrical faults at any period in its lifetime and completely out of the blue. Older cars may be more likely to break down, but equally, new cars contain a lot of technology which can fail and is also expensive to repair. You will not want to have to use company funds for these repairs, but a car warranty provides peace of mind knowing that the insurer has you covered.
Where to Find a Policy
The importance of having a car warranty in place for the company vehicle is clear, but where should these be obtained? It is possible to buy an extended warranty from a dealership when you buy the car, but this usually does not provide the best level of cover. Instead, it is best to speak to a specialist like ALA so that you can get comprehensive and flexible cover. This means that you can get important features like recovery costs, diagnostics, consequential damage, car hire, MOT failure and wear and tear all included in the policy.
No matter where you obtain the policy from, you should always read the small print and make sure that the provider is reputable and regulated by the Financial Conduct Authority (FCA). All warranties are different, but a comprehensive policy should cover engine, transmission, fuel and ignition, cooling system, electrics, gearbox, steering, suspensions and brake system parts.
Costs
As a business owner, it is understandable that you would want to keep costs down. In addition to the level of cover, other factors which influence the premium include the make and model, mileage and age. Therefore, it is important to keep this in mind when navigating the used car market and avoid purchasing a high-risk vehicle. Specialists are still the best place in terms of price, plus you do not have to opt for an inferior warranty.
Usage
It is also important to consider the usage of the car before taking out a warranty. If you will be using the vehicle on a daily basis and making regular long drives, it is wise to opt for the most comprehensive level of cover. Conversely, businesses that do not regularly use the car and only make short trips may want to consider a more basic level as the risk of a mechanical or electrical fault is smaller (but still there).
Any business owner investing in a new car must always consider the warranty. Otherwise, you could face costly repairs and be left without a vehicle whilst it is being repaired. A comprehensive warranty will provide protection and peace of mind, but you must always take the time to research the provider and policy.
