So your looking to become a taxi driver, courier or tradesman, having the right vehicle will make a big difference to your bottom line. Within the first 12 months, watching your spending can be the difference between success and closure. One of the biggest outlays will be your work vehicle, so choosing the right method of purchase, quality of vehicle or tuning options is important.
Our government regularly run initiatives that encourage people to choose the right kind of vehicle that’s good for the environment and the economy. One recent example was a diesel scrapage scheme which encouraged drivers to trade in their old oil burners in exchange for economical petrol or electric engines.
So let’s take a look at some ideas that you could utilize to grow your profit margin.
Cost of vehicle
One of the biggest mistakes first time traders make is spending too much on a vehicle. In reality, the car or van will do huge mileage so the residue value will decrease dramatically. As a result, consider if there are cheaper options available. Do also factor in the cost of maintenance. Any premium brand such as BMW or Mercedes, will also come with significant service and part costs.
Lease/purchase
Before buying a vehicle outright, consider if leasing could be a better option, if you are leasing a new vehicle, servicing will be included as part of the deal, also it will come with a decent warranty to cover major part replacement. One major issue however is mileage limits do estimate your usage properly, including any personal mileage you may also do in the vehicle. If you go over your mileage limit, the charge per thousand miles is normally very expensive.
Economy
Fuel economy is one of the biggest factors for business users who do large annual mileage. Some consider LPG conversions, these usually cost in excess of £1000 to install however can reduce your fuel usage by at least 20%, the downside to these are that they take up plenty of space and also require their own servicing. A cheaper alternative is to reprogramme the vehicles ECU. If you are local to the area you could consider using this Kent remapping company. Costs for remaps are less than 1/3rd the cost of an LPG system, they are easily reversible and no physical kit is required as it’s simply tweaking of the cars computer management system. These tweaks improve fuel efficiency and throttle response.
Tax Class
Although road tax is a fairly cheap element of driving, there is nothing stopping the Government from changing the rates or class terms. Recently, even some electric cars have had their £0 road tax funds revoked, so do try and buy something that comes with a low tax band. Newer vehicles are naturally more economical. As such, the tax classes are usually lower, in some circumstances changing from an uneconomical car with high tax band, to a more efficient, lower taxation model, can save you enough money per month to actually cover the cost of a lease.