How to Save Money on Buying a Car for Business Purposes

March 18, 2013

If you are thinking of buying a car for your small business or for general business use, you should know that there are several parts of the car deal that differ considerably from a personal car purchase. There are things to consider in the type of vehicle you purchase, the way financing is arranged and also car insurance considerations that you will need to take into account.

While purchasing a commercial vehicle or car for your business differs somewhat from the purchase a personal use vehicle, owning a car registered and titled in the name of your business offers many benefits and savings.

Saving Money on the Price of Commercial Vehicles

Searching for a commercial vehicle is much the same as searching for a private vehicle; however, you will find that there are generally fewer dealerships available that cater to small business and commercial vehicle needs. Therefore, you should use the Internet to search for both online car dealerships and local dealerships that specialize in helping small business customers find vehicles for use. If you're searching for a standard car for your business, then obviously you won't have any problem finding a vehicle; however, if you're searching for a special type of vehicle such as a delivery truck or customized panel van, you'll need to search out dealers that offer these types of vehicles.

Finding Financing for Commercial Vehicles

If your business has been in operation for a while and is well established, you will find that there are many business banks that are willing to provide financing for a commercial vehicle purchase. Furthermore, most major car manufacturers have a business finance division that can also help you finance a vehicle. However, you'll need to search for the lowest interest rates and terms just as you would with a private car purchase, but you should know that sometimes searching for and finding these lenders may be a little bit more difficult.

In order to find the best rates on business car loans, you will probably have to contact the lenders directly as there are not many options for comparing business car loans as there are for private car loan lenders. Generally speaking, your local bank or a major car manufacturer may be the best bet for securing the best rate financing on a commercial vehicle.

Other Ways to Save On a Commercial Vehicle

Besides negotiating a lower selling price, finding the best interest rate loan and other common ways of saving money on a vehicle purchase, you will also be able to take advantage of the many business-related tax incentives that your state government and the federal government offer for vehicles that are used in the business.

Normally, you should be able to deduct the finance charges on the loan as well as fuel and maintenance costs for the vehicle. In addition, most small businesses save money on their taxes by depreciating the vehicle and claiming credit for the depreciation on income tax returns.

In order to find out how a business vehicle can help you save money on your business taxes, you should ask your business accountant to provide you with more information. Using a vehicle for your business that is titled and registered in the name of your business can help your business save a lot of money; furthermore, titling a vehicle in the name of your business may also help shield you from liability if the vehicle is involved in an accident.

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