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Stuff to consider when buying a company car

Stuff to consider when buying a company car

Running a family business is tied to networking. So, you have to be out there on the field and interact with people. Obviously, you will be travelling with your car. If you do not have a company car, then it is high time you get one. Having a car for business is advantageous. You do not have to rely on public transportation. Let us not forget about the convenience of doing business outside the office. When it comes to buying a company car, you have many options. You can buy, for example, an Acura MDX. You will find a used acura mdx for sale at Edmunds. However, there are many other options out there. When buying a car for business, you need to take into account the following aspects.


How much you can afford

No matter if you are buying a new or an old car, you have to set up a budget. Just because you can afford an expensive vehicle, this does not mean that you should buy one. You can use the profit you make for other purposes. You can buy a pricy car, but only if your business has started making profit. If your business does not make earnings, you will be forced to sell your company to pay the car. This is the last thing you want. Figure out how much you can afford realistically.

An SUV will cut your tax bill

If you buy an SUV in 2017, your depreciation limit is significantly lower. No matter if you buy an Acura MDX or a Jeep Patriot, you will be able to reduce your federal tax income bill. There is one thing to pay attention to. You cannot use the vehicle for personal use. If you do so, you will not be able to claim a tax refund. Drive the automobile only for business use and make sure to track the mileage.

Decide if you want to buy new or used

You have determined how much you can afford to spend on the company car. Now, you have to decide whether you want a new vehicle or an old one. Either option is worth considering. New cars offer better reliability, while old ones have increased value. A used car means a lower price. But what about reliability? Contrary to popular opinion, used cars do not have a questionable reliability. It is just that their reliability is not comparable to that of new cars.