Is Owning An SUV For Your Business The Right Choice?
Getting a vehicle for your business can be a difficult decision to make.
You have to decide what kind of vehicle you need and try to align that with what your business can afford. If you find the right balance, you could take your business to another level.
Are you considering getting an SUV for your business? Then you should consider a few things before making that purchase.
Today, we are going to talk you through the pros and cons of buying an SUV for your Business.
First, let's look at how purchasing an SUV can benefit your business.
If you are using a car for your business that is currently not owned by your business then you will be missing out on a few tax advantages.
Firstly, when you buy a car for your business, it is classed in the same way as any other type of business equipment. This means you can include it as an essential business purchase. Depending on where you live, you might be able to claim back so or all of your VAT.
When you are driving in a company car, you and the company can claim back $0.58 for every mile driven on behalf of the company.
If you are a small business owner, then owning and having an SUV for your business could change how your business operates.
A company car can be the difference between driving to the post office quickly before it closes, or having to wait until your courier comes to visit again on Monday morning.
You will no longer have to rely on others to move your products around. You can drive to new parts of the country and talk to new customers. The car will give you the flexibility to go out of the way for your customers on your own terms.
Every new business owner has been there - they have been invited to a business meeting or event that is taking place in another state, but you can't get there. Or you have been invited on your industry's leading podcast, but again you can't get there.
Having easily accessible transportation for the important people in your business can open up new opportunities for the business.
When the business has its own car, you will never have to say no when an opportunity comes knocking.
If you do want to buy an SUV, then you will need to make sure you hunt around and find the best option for you.
Think about what you need it for - do you need trunk space, all-weather options, or speed. You can find the Fastest SUV under 30k here.
In this section, we are going to talk about things you should seriously consider before purchasing a car for your business.
This is not the type of decision that anyone should rush into or feel that it is necessary for their business to be successful. Every successful business looks different, what works for your competitors may not work for you.
As a business, you will not want to lease your company cars. You cannot claim tax rebates in the same way when you are leasing and you typically lose money over time - plus there are the interest payments to think about.
That being said, buying a car for your business can cost a lot of money - particularly if you are looking for an SUV. You could be paying up to $40,000 in one go. You will then have to consider insuring everyone on the company car and the cost of yearly check-ups.
You want to make sure that your business is in the position to make a purchase like this. You do not want to spend money that you can't afford on a vehicle.
Many people decide they need a car for their business and rush into the purchase. This is the last thing you want to do - even if you have the money owning an SUV for your business right now.
You want to take the time to think exactly about what your company needs the car for.
Will people be traveling from state to state in it? Will it be used to make product deliveries? Will you be making sales visits in your car?
Once you know what you want from your company SUV, you need to take the time to find a car that can offer you exactly that.