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Buying Your First Business Vehicle
So you have decided that your business is ready to buy its first business vehicle, so now you may be wondering what your next step should be. There are many benefits to your business having its own vehicle, but there are 5 important things you need to consider before making this purchase.
Contents
Understand Taxes
The major benefit to your business purchasing a vehicle is the tax advantage that comes with it. You need to assess the best way to claim your company car before buying one. You will need to claim your tax deductibles annually, so decide if your company will deduct by mileage or the vehicle’s actual expense. Do your research so you don’t make a mistake whilst filing your tax returns.
Buying First Business Vehicle: Choose Size Carefully
Buying a nifty-looking German sports-car can be fun, but it might not be practical for your company’s specific vehicular needs. You need to consider the regular trips this vehicle will need to do, such as long-distance travel or inner-city trips, and then decide what size you will need to buy to achieve this specific need. Please take a moment for introspection on this one. Once you decide on the size, it will be much easier to narrow down your options and make the right selection.
Factor In Maintenance Costs
Your business vehicle’s maintenance costs will largely be determined by your selected vehicle’s age, make, and mileage. Understand the specific costs for general auto repair Midvale UT, and this will make your decision a lot easier. Work out the maintenance costs for your chosen vehicle and factor this into your overall budget. Remember to justify your business vehicle properly; unnecessary trips drive up maintenance and overall vehicle costs.
Prioritize Fuel Economy
After purchasing a business vehicle, the last thing you will need is to be slapped with a massive fuel bill every month. If your vehicle is spending a lot of time on the road, you will need to find the fuel economy’s best car. Use a handy online miles-per-gallon calculator; it could end up saving your company a fortune in fuel costs every year.
Get Insurance
Make sure your business vehicle will be adequately insured if anything had to happen to it. Standard insurance policies may not carry the level of protection and comprehensive cover that your business vehicle will require—factor in things like long-distance driving and having multiple registered drivers when choosing a policy. Don’t skimp on this; risking having your claim being denied will end up costing your business a lot more in the long run. There are typically 3 business insurance categories; business use by you, business use by many drivers, and then commercial travel use – decide which of these your business needs and then get insurance quotes for your company’s particular needs.
