What to Consider When Buying a Company Car for your Real Estate Business

By
Mortgage and Lending with Olympus Labs

A car is a necessity if you own a real estate business. If you’re going to be zipping around town showing off homes for clients, you need to have reliable vehicle. You also probably know that the key to a successful real estate business is establishing trust with your clients . A great car can make a positive impression about you and your business.

When you’re considering buying a company car for your real estate business, consider these five guidelines.

  1. Buy a Vehicle that Gets Good Mileage

A company car should also be economical. Make sure you buy a car that gets good mileage so you won’t have to spend a hundred dollars per month on gasoline. You’re going to be driving a lot from house to house, maybe even houses that are outside of your immediate area. It’s likely that you’ll be driving along suburban roads, too, which means you’re bound to hit lots of stoplights. All in all, you’re going to burn through a lot of gas as a real estate agent, so you don’t want a car that’s a gas-guzzler, even it looks nice.

Remember that tires may influence your gas mileage, too. Be sure your vehicle has fuel-efficient tires , or have fuel-efficient tires installed.

  1. Buy a Luxury Vehicle

If you want to exude an image of success and style for your real estate business, your company car should be a luxury vehicle. Real estate transactions are immense, and typically involve a large transfer of wealth. Acquire new clients by convincing them that you’re experienced and successful at selling properties. And nothing screams “experienced and successful” like a luxury vehicle.

Luxury cars cost a ton of money, though, and if you’re just starting up your business, you might not have enough money to buy a new one. But you could always buy a used one. Look for used Mercedes-Benz cars for sale , or find used Acura cars nearby. So long as you buy from a certified dealer, you’re sure to receive a quality luxury car that still runs great.

  1. Lease a Vehicle

If you don’t have the funds to purchase a vehicle outright, consider leasing a car , instead. Leasing a car is very similar to leasing an apartment. You make a down payment and then you pay a monthly rental fee. Car leases are typically made for 2 years, but some dealers allow you to lease for 3 years, which is optimal if you want an even lower monthly payment.

Most car leases require that you not exceed a maximum number of miles while you’re leasing the car. So long as you use the vehicle only while you’re on business, you probably won’t exceed the mileage limits. Also be aware that you’ll have to pay for any damage and excess wear-and-tear that happens to the car.

One of the nice things about leasing a car is that you won’t have to worry about your car becoming outdated. After your lease expires, you can lease another car that’s newly released. You’re also able to lease luxury cars, which is a big plus.

  1. Don’t Be Too Showy

Unless your real estate business sells properties for celebrities or for the ultra-wealthy, you should avoid getting a company car that’s too showy. A Ferrari or Lamborghini , for example, might be a little too ostentatious for most clientele. It’s important that you give the impression of confidence and success . But extreme sports cars just make it seem like you’re trying to “compensate for something.” You don’t want prospective clients to think that you’re all style and no substance. Luxury vehicles, on the other hand, make for elegant company cars. But try and steer away from sports cars, limos, and anything else that’ll make you look like a wannabe.

  1. Get a Vehicle that Everyone Can Drive

If your business has multiple employees who may use the vehicle, you should definitely get a company car that everyone is capable of driving. Try not to get a vehicle with a stick-shift transmission; most people nowadays don’t know how to drive stick. Stick to automatic transmissions. Also make sure that the vehicle will be comfortable for everyone, that it’s roomy and has working air conditioning. It also doesn’t hurt to get a cell phone mount so that your employees can use navigation applications.

Once you’ve considered these five aspects of company car buying, you should be ready to choose your new company vehicle for purchase or lease.

 
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Rainmaker
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I purchased a car for my company, National Marketing Realtors, when I was the Broker Owner of the company. The main purpose was I didn't want to hassle with keeping track of the mileage. I did check with my CPA first and she added a couple of other good reasons as well. I think I got a better insurance rate as well David Jackson, MBA 

Apr 12, 2019 12:38 PM #1
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David Jackson, MBA

Financial lending analyst
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