Obtaining Vehicles for Your
If you know that you'll need to use a car or truck in your business, you will
find this process useful for obtaining one:
- Consider whether you can use a vehicle you already own. Do you really need
to go and lay out money for a vehicle? Depending on both your business and
personal situation, converting a vehicle that you already own to business
use is probably the most cost-effective option for you. This lets you put
your money to better use elsewhere in your business.
purchasing a used vehicle. If you've decided that leasing is not an
attractive alternative for obtaining the vehicle you need, we strongly
suggest that you consider purchasing a used vehicle rather than a new one.
Vehicles are bad investments, and the difference between what you'll pay for
a new vehicle versus a used one can probably be better spent on other areas
of your business. Our discussion of used vehicles can help you to get one
without getting burned.
leasing a business vehicle. If you've thought about your business and
you're convinced that you need to get a new vehicle rather than a used one,
you should consider the advantages and disadvantages of leasing rather than
buying a vehicle.
the tax consequences of obtaining a vehicle. Did you know that if you
purchase a vehicle, you may have to pay substantial excise taxes? Did you
also know that there are certain tax breaks available to you if you buy an
electric powered vehicle? And of course the major issue, if you use vehicles
in your business, is keeping adequate records of your business usage. Before
you obtain a vehicle for your business, be sure that you understand what it
will mean for you when it's time to file your tax return.