What to do for a company car?

[DiamondPPF]

I’m a small business owner specializing in clear bra paint protection film and I’m interested in purchasing a luxury sedan for my company. Its purpose will be to use as a demonstrator and to offer to customers as a loaner vehicle.

I’m looking for something that will be safe, reliable and relatively inexpensive to own/maintain. Interior space is a concern since I am 6’3 and I will be transporting customers in this vehicle. AWD is a requirement since I live in New England and customers will be driving this vehicle. And of course price is a major concern. It must be under $20k. Ideally under $15 for my budget…

Based on my experience I’m looking at:
2008+ 3 or 5 series
2009+ A4, A6, or S4 if I can find one I can afford.
2008+ c300 or e350


I know this is a BMW forum so I’m sure there will be some bias, but based on your experience what do you recommend? Any specific pros or cons for any of these vehicles based on what I need it for? Any other cars I should add to the list?

[montaillou]

...relatively inexpensive to own/maintain.

I think you're in the wrong place. Have you looked at Japanese cars?

[DiamondPPF]

I think you're in the wrong place. Have you looked at Japanese cars?

Haha I know. I meant relative to the other cars on the list. I used to be a mechanic, so I can do the basic maintenance. I'm more concerned about the stuff I would need specialty tools for or bigger jobs I can't do on my own.

I did start looking at the G37x sedan. I used to own a g35 coupe that I loved. That car is slightly cheaper for similar year/milage/options and I know I can do all the maintenance, cheaper parts... That would be a better option for me personally, I'm just not sure my customers would look at it the same. Maybe I'm over thinking it.

If you brought your BMW in for paint film and I gave you an Infiniti (instead of a german luxury car) for the day would you care or just be happy you got a loaner?

[Doge]

Personally, I wouldn't get a paint film.
For arguments sake, I wouldn't care what I get as long as I can get places. (And I get my car back)
But I agree with Montaillou, you're not likely to get very positive feedback in an enthusiast forum...even though this tends to be one of the more "civil" BMW forums.

Isn't a company car supposed to be bought with minimal maintenance in mind? Otherwise it kind of defeats the purpose, no?

[BimmerBreaker]

I've been with friends who have had their car vinyl wrapped, some who have had the paint protection services... never had a loaner, ever. I don't see the point. Its a legal and financial liability and it's not something that will "wow" your customers. I'm assuming you want this as sort of a tax write off thing, if so, it doesn't need to and shouldn't be a loaner. Get a car you want and slap some vinyl on it with your company name and info.

The brand of car you get doesn't matter unless you plan on marketing towards a specific make.

[montaillou]

Unless your customers are bringing very high end cars they're not going to be expecting any sort of loaner. Look at it this way, if someone brings in their Honda Civic worth 4k, why would you give them a BMW worth 40k?

If you think that giving them a loaner will help set you apart from your competition give them something that showcases your product.

[Niswonger]

Lease a Subaru Legacy and call it done. Safe, cheaper and a write off.

[DiamondPPF]

The majority of the cars I do are new or newer with a $30,000 + price tag. It takes several hours to do an install so it's not something you want to wait around for. The main reasons I want to try this are:

1. Conveinince for the customer and myself. Either they drop off their car and leave or I go to them and swap cars. The customer is not inconveinienced being without a car and I can take my time on the install making sure it's perfect without the added pressure of a waiting customer.

2. Advertising. I'm going to wrap the front end and put my company logo on the back window. If I'm driving it, I'm in my sales tool wherever I go. If a customer has it, it's a conversation starter. If you pull up to work or home and a coworker or neighbor sees you in a new car they're probably going to ask about it. Then my customer can tell potentially new customers about me.

3. Perception of quality. When you see a BMW or Mercedes, their brand is associated with high quality. Most people don't know who I am. I know I have a high quality product/service, but the customer won't know that until they see my work. This vehicle will probably be the first impression new customers get of my work.

[Doge]

Salient points.
Kind of sounds like you've already made your mind up.
German cars (regardless of brand) should be maintained well...especially if you're going to loan it out. Just be prepared to shell out cash when something happens and stay on top of preventative maintenance to ensure less will happen. (This wold go for ANY car though).
I wouldn't lease anything, favors the dealer too much.

[JWalker]

I wouldn't lease anything, favors the dealer too much.

Hows that?

[Doge]

Hows that?

Thinking now, it probably doesn't in his case.
I don't like leases, I am biased...disregard previous comment.

When you lease, you have to play buy the leaser's rules for the duration of the lease...otherwise you get whacked with penalties. The upside is they take care of the car, it's a trade-off...one that I don't like. I have issues with people putting limitations on what I can and can't do. That's just me though.

[BimmerBreaker]

The only time leases are beneficial are when businesses can use them as tax write-offs. Pretty common around my area for business owners to lease a car for their business, drive it for 3 years, turn in the lease, then they personally buy the car from the dealer after the lease trade in. They effectively get the first 3 years of use "free" since its a write-off, then they buy it for whatever the residual value is after 3 years.

OP, I'd be very careful giving a loaner to your customers. Your thought process is valid, but what do you do when a customer wrecks the car? If you want to pay for insurance to let anyone drive it, that gets expensive $$$$$. Factor in increased wear and increased repair costs.... $$$$$. If its a lease, now you have to deal with fixing every single little imperfection, which there will be many when people are allowed to drive a car that isn't theirs. It all adds up very quickly, and the costs incurred can very quickly offset any increased sales generated from a car being used like that.

I'd get a CHEAP beater - something decent, fairly reliable but older. Like an E39 530i. Use that as a loaner, if you want another newer car for advertising, do that but keep it for yourself so you don't have to worry about people damaging it. Let your customers damage the $5000 E39 you own outright instead of your $50,000 F10.

[DiamondPPF]

The only time leases are beneficial are when businesses can use them as tax write-offs. Pretty common around my area for business owners to lease a car for their business, drive it for 3 years, turn in the lease, then they personally buy the car from the dealer after the lease trade in. They effectively get the first 3 years of use "free" since its a write-off, then they buy it for whatever the residual value is after 3 years.

OP, I'd be very careful giving a loaner to your customers. Your thought process is valid, but what do you do when a customer wrecks the car? If you want to pay for insurance to let anyone drive it, that gets expensive $$$$$. Factor in increased wear and increased repair costs.... $$$$$. If its a lease, now you have to deal with fixing every single little imperfection, which there will be many when people are allowed to drive a car that isn't theirs. It all adds up very quickly, and the costs incurred can very quickly offset any increased sales generated from a car being used like that.

I'd get a CHEAP beater - something decent, fairly reliable but older. Like an E39 530i. Use that as a loaner, if you want another newer car for advertising, do that but keep it for yourself so you don't have to worry about people damaging it. Let your customers damage the $5000 E39 you own outright instead of your $50,000 F10.

Those are all valid concerns. In MA the drivers insurance covers the car. If a customer crashes it their insurance should cover the damage. If their limits aren't high enough or they don't have the right coverage then my insurance would take over. Commercial insurance is around $1200-$1500 depending on the car I choose which is roughly double what I pay for my personal vehicle. That being said insurance is always difficult to deal with and it is very possible I could get hit with a major bill if that happens.

I'm thinking about just offering this service to customers who do a full front end or more. Since those jobs can take more than one day I think having a loaner will make a bigger deal for those customers. If they just want a standard front end they can drop it off or I can pick up their for a small service fee. Unfortunately if I charge for the loaner that's when my insurance rates go way up so I don't think it's worth charging for.

I'm looking at cars under $20,000. Not that that isn't a lot of money, but it's not like I'll take a huge hit on a brand new car. I looked at leasing a new car, but I think there's too much risk there and the cost is much higher.

[Doge]

I'm thinking about just offering this service to customers who do a full front end or more. Since those jobs can take more than one day I think having a loaner will make a bigger deal for those customers. If they just want a standard front end they can drop it off or I can pick up their for a small service fee. Unfortunately if I charge for the loaner that's when my insurance rates go way up so I don't think it's worth charging for.

If spend $XXX.XX, then get loaner (make it firm on the price point). Probably also have some indemnity form signed in case of negligent behavior.

[montaillou]

It takes several hours to do an install so it's not something you want to wait around for.

You could always contact a cab company, set up a corporate account. People should expect a little disruption to their day.

[Cheyne]

How often do you have a customer's car overnight or longer? I wouldn't suspect it would be often. Whenever I take a car in for a service, tinting or the one time that I've had a protective wrap done, I just drop the car off in the morning and pick it up after work. Most of the places I deal with drop me off at work and then I cab it/walk it back to collect the car. For your better customers or the ones you want to impress then drop them off or even offer them a free Uber or similar. I'd never expect a loan car for that type of work.

I used to be a part owner in a restoration shop that did insurance work too. We had to have loan cars available to be insurance certified. They were a nightmare. Parking tickets, speed camera tickets that would show up months later and we'd have to spend ages trying to track the driver down and prove it was them driving etc. Then you get the damage done to the vehicles through multiple careless drivers. Annoying things like scuffed rims, bumper rubs etc that would get really expensive if you needed to keep the car looking 100% like you would.

So I'd go with Bimmerbreaker's suggestion and skip the loan car aspect. Get something that you want and stands out to the type of customers you want to attract. There isn't much to separate most modern mid-spec European cars in terms of maintenance costs anyway, they all have their foibles but are generally reliable when kept well.

[SpeedsterBek]

You can one of those Lexus sedans with AWD within your budget. However, consult with your tax advisor FIRST if you want to have a tax write off for your business. Usually, leasing is better when you're buying a company car.

That being said, I'd avoid a loaner car altogether. Why subject yourself to an unnecessary risk and expense? Besides, it's rare to expect a loaner car for the types of services you offer.

If you need a company car, wouldn't ones of those new small or medium sized crop of vans will be a better option? A lot more practical and you can have more space to advertise in back/ sides of the cargo van

[ross1]

"reliable and relatively inexpensive to own/maintain"
"A4, A6, or S4"
Seriously, a loaner for your service isn't needed or expected. Nice that you would perhaps offer this but you will likely be VERY sorry the first time there is damage to the car. Have you investigated what insurance for this would cost?

[DiamondPPF]

I think were getting a little off topic, although I do value the input. I'm really more interested in your personal experience, good or bad, with a specific vehicle and how it might relate to using it for my business. The car isn't going to be loaned out every day. Based on my experience I'd guess maybe once every week or two. I think most people expect to drop off and get their own ride. I try to make it easier by offering rides. I also offer to pick up and deliver your vehicle depending on the location. The most common scenario would be people who come from far away. Those customers who are driving a long distance have a harder time getting rides or finding places to go. It's just another option for me to offer people if needed.

The car is mostly for me to use. I do wholesale work at other shops, drive customers, go to shows/cars and coffee... I would like something more practical than my mustang to use for the business. Something with four doors, leather and a comfortable ride.