In an “almost” post Covid-19 world we are all seeing and possibly experiencing ourselves a significant amount of anxiety over what the future holds for us and what our businesses will look like in the months to come.
One of the most significant situations we are experiencing with business owners currently is the catch-22 between knowing that vehicles need to be upgraded and the possible implications of signing up for long term financial obligations in these uncertain times, especially when we aren’t 100% certain of where the next dollar is coming from.
Cash is king!
Right now, keeping control of expenses is key – so the potential of looking at a late model secondhand vehicle over a new one simply has to be considered. I recently ran the numbers for a client who needed a ute for a new junior employee, and the results may surprise you.
Check out our video on this
We looked at some assumptions over four years on a new Ford Ranger XL 4×4 D/Cab ute versus a three year old version with 90,000kms:
Total payment savings annually
Total FBT savings annually
Total savings over four years
The additional benefits that the client hadn’t considered with a 2nd hand ute were the environmental and staff impacts which were :
- Supplying the junior employee with a brand-new vehicle meant setting a potential precedent with the rest of his employees who benefited from a company supplied vehicle and looking at a 2nd hand alternative avoided that own goal quite nicely.
- The vehicle would be used in some reasonably harsh environmental conditions on construction sites etc and a 2nd hand vehicle once again softened the potential for refurbishment risks.
Considering all of the above
The client opted for the 3 year old equivalent vehicle in this instance.
Driveline has an expert team of consultants that are working with these types of issues daily with clients so if you would like some obligation free advice then give the team a call on 0800 275374, www.driveline.co.nz