The rule for buying a company van: Plan
By Christine Selvig • Bankrate.com

When shopping for a new company van, the time to start is not when the old one chucks a piston down the interstate.

But because small-business owners wear all the hats when it comes to running their businesses, the task of replacing an aging company vehicle may not hit the top of the to-do list until the engine blows or the brakes give their last squeal. Faced with the possibility of downtime, the buyer comes to the dealer frantic, looking for the right van right now.

Unfortunately, according to Billy J. Green, commercial account manager with Don Seelye Ford in Kalamazoo, Mich., the right van and right now are rarely synonymous. Most vans on the lot come with retail option packages. More often than not desperate business owners end up paying more than they would if they had ordered exactly what they needed. To avoid this, Green suggests buyers give themselves at least three months to search for and order a company vehicle.

The road to a new van
When John Simcina of Lake Worth, Fla., set out to buy a new van for his air conditioning company last year, he did it right. Years of experience have left him with a basic buying formula. He identifies his needs and researches his options and their costs before he ever sets foot in a dealer's showroom. He replaces his vans long before the treads go bald and the paint begins to chip. And he gives himself plenty of time to order exactly what he needs and have it delivered.

As he made the deal for his new 1-ton Econoline cargo van last year, he made sure he kept an optional trade-in clause, so he would have an out if he couldn't sell the van himself. Finally, he sold his old van to a sole proprietor who was willing to wait to finalize the sale until Simcina's new van came in.

Simcina followed the most important rules for getting the right deal on a company van:

First and foremost, plan ahead. Act before you come into a crisis situation. Give yourself time to identify and order the car that's right for your business.

Write a job description for your new vehicle. Here are a couple of questions to ask before you head for a car dealership:

• What kind of workload will your new van have? Are you looking for a vehicle that will serve as your workhorse during business hours? Will it double as a bus in the evenings and on weekends?
• Will you be carrying around tools, heavy equipment, samples or delivery items?
• How much will your cargo weigh? You'll want to match the size of your van with the weight of your cargo. For instance, if you're delivering popcorn or flowers, a 1/2-ton van will serve your needs. If you're carrying heavy tools and equipment, you'll want to consider a heavy vehicle.
• Will you be using it to travel across town or up and down the interstate? If you're making longer runs, you might want to weigh the benefits of a diesel option. Diesel engines cost more to begin with but might end up saving you money in fuel over the long haul.
• And, most importantly, how many miles a year do you expect to put on the vehicle? If it's under 15,000 or 12,000 miles you may want to consider leasing. If it's over 20,000, you might be better off to finance and buy it.

Research, research, research. With the Internet at your fingertips, there's no excuse for not being a knowledgeable buyer.

Here on the Bankrate.com site, our auto loans channel provides strategies for finding the best auto loans -- and avoiding the worst deals.

Elsewhere on the Web, you'll also find sites such as Edmunds.com, Autobytel.com, Stoneages.com and Invoice Dealers that offer information about your future van and prices. Most of these sites will hook you up with local dealers and/or forward your request for a quote. These sites aim to make their readers informed buyers, telling them about all possible discounts and offers available not only to you but to the auto dealerships themselves.

Point your mouse to the packages. After you have added up the options that are important to you, review the packages each car manufacturer is offering. Packages are groups of commonly requested features bundled together and offered for as much as 20 percent less than the options cost when bought independently. Manufacturers will convert options to packages when possible. However, knowing this ahead of time makes your estimated costs more accurate.

Strike your deal. Research done, it's time to hit the road. Visit dealers and test drive a few of your options. Make a point of talking to one of the dealership's commercial sales representatives. Not only will these folks be able to advise you better about the best type of vehicle for you purposes, they are also more aware of special deals for commercial accounts. For instance, manufacturers offer their commercial customers free upgrades or special accessory package deals on shelving or tools. You'll need to bring an occupational or business license along to take advantage of these freebies.

Think ahead. In three or four years -- when the warranty of this van expires -- you'll be starting this process all over again. When that time comes you may decide to sell your old van yourself. If you pull that invoice off the window now and file it away, it will be a whole lot easier to point out the special options that make this van so special.

Wondering what they're asking for some of those company vans? Check out our chart of sample prices.

-- Posted: June 5, 2000