Cost Considerations in Buying a Delivery Vehicle for Your Business
In today’s fast-paced digital world customers expect instant services, and for many businesses that means investing in a delivery vehicle. Yet, if you’re planning to buy a delivery vehicle for your business, you might want to consider the current economic climate before purchasing one. Business owners have told the BBC that they are struggling due to rising fuel costs, which is having a detrimental impact on their profit margins. While both diesel and petrol prices have decreased from 196.37p and 188.87p per litre to 186.23p and 164.46p, it is still having a negative impact on companies who use delivery vehicles. Since most delivery vehicles are larger than your average automobiles, you can expect higher fuel costs.
But apart from petrol expenses, other factors can also affect the cost of your delivery vehicle. Here are some of the things you need to examine before buying the vehicle:
Hiring a Driver
If you buy a delivery vehicle, you’ll need a professional driver to operate it. This is especially important if it’s a heavy goods vehicle (HGV) because not everyone is permitted to drive HGV vehicles, even with a regular driver’s licence. Unless you hire a specialised driver, your company may incur additional costs because the driver will need to undergo training to obtain an HGV licence. An article by Rachael Davies explained that the starting salary for an HGV driver is between £19,000 and £24,000, and this can climb up to £45,000 depending on experience and long haul contracts. For example, overseas and long-distance HGV drivers have higher salaries than local or national drivers. Because of the increasing rate of HGV drivers, we mentioned in our article on ‘6 Ways To Generate Income Aside From Your Business’ that being a truck driver is a profitable method to earn some cash.
Applying For An Auto Insurance
Vehicle insurance can be a huge money drain for companies, yet it is necessary for your company to get it. A Sound Dollar feature on insurance premiums outlines how this coverage will protect you from greater financial loss if something happens to your delivery vehicle. There are various types of car insurance, but it’s better to upgrade to full-coverage insurance since it protects both the vehicle and the driver. You will need to pay an insurance premium, which is the price you pay to buy an insurance policy. To give you an idea of the cost, the average courier insurance in the UK is £908 per year. Most auto insurance companies allow you to gradually pay your premiums monthly, while others may offer discounts if you pay annually or biannually.
Getting Vehicle Maintenance and Repairs
Although buying a vehicle for your business is a one-time investment, you will still need to spend money on maintenance and repairs. Since they will be used regularly, they will eventually need routine maintenance and check-ups to ensure that the vehicle is safe to be on the road. However, automobile maintenance and repairs can be expensive. A recent survey conducted among UK drivers found that drivers spent an average of £803 last year on fixing their vehicles. When calculated collectively, authorities revealed that an estimated £18.5billion were spent on vehicle repairs alone. It’s also worth noting that costs may differ according to your location. In London, repair expenses were at £1,796, while Oxford and Bristol have an estimated repair cost of £1,587 and £1,267, respectively. Finally, the survey discussed that the most common automobile repairs were tyre replacement, brake repairs, windscreen repair and replacement, wheel alignment, and spark plug replacement.
If you are thinking of investing in a delivery vehicle do take into consideration the above costs.