Factors To Consider When Buying A Car For Your Business – Premier Car Brisbane
A vehicle is an expensive purchase and one that needs to be done wisely. Cash for Old Cars
offers business owners the following information on factors to consider when buying a new car or truck for their business.
What Will Be the Primary Purpose of The Vehicle?
Knowing the primary use for the vehicle puts you closer to purchasing the best vehicle for its intended use. A vehicle is a long-term asset to a company and one that doesn’t come cheap. Consider the use of the vehicle. For instance, if you need a parts truck for short trips around you likely don’t need a hearty fuel guzzling 4×4. A small, lightweight truck will likely be enough and will be less costly to buy and maintain.
Know the features you need in a vehicle, as well. Safety features add cost to the vehicle, and some are not necessary.
New or Used or Certified Used
Once you have determined the primary use of the vehicle the next step is to determine if you should purchase new, used, or certified used. Buying a new vehicle has its ups and downs. The vehicle will be more reliable, have a warranty, new technology & safety features. They also mean a higher price tag and will depreciate 20 percent once you drive it off the lot. Used vehicles come at lower prices and insurance coverage for the vehicles are cheaper. They also can mean a less reliable vehicle. Certified used is a dealer refurbished vehicle with low kilometres and one original owner. Consider its use and how long you intend to keep the vehicle.
Car Finance Options
If you don’t have the cash to purchase the vehicle upfront, financing the vehicle will be necessary. Business car loans have more advantages than a loan for a private buyer, so learn your options. The two primary car finance loans for business are hiring purchases and chattel mortgages. Chattel mortgages give you ownership as soon as you purchase the vehicle while hire purchase agreement means the bank or lender retains ownership until the loan is paid. Business’ can also tailor a chattel mortgage to fit their cash flow and requirements.
Small Business Tax Break
If your small business is eligible, you can look at vehicles priced under $20K, including GST and claim the purchase price under the accelerated depreciation scheme. The business must have a turnover of less than $2 million to claim this tax break through.
Selling a company car or truck? Cash for Old Cars buys company vehicles quickly and easily. Contact us for a cash for cars quote at 0401 960 698.