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Obtaining Vehicles for Your Business

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.
  • Consider 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.
  • Explore 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.
  • Consider the tax consequences of obtaining a vehicle. There are several tax implications that can result if you obtain and use a vehicle for your business. Did you know that if you purchase a vehicle, you may have to pay substantial excise taxes? 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.

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