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Buying a Car for Business

If you manage your own business that’s growing you may be starting to think about buying a car for that business. Once you’ve decided to get a business car you have another decision to make:

Should you buy or hire purchase a car for your business?

Once you've worked out what type of car you'll need, how much you'll use it and how much of that use will be business or personal, then consider the following points;

Pros of Buying a Business Car

  • The business can deduct depreciation expenses on the vehicle
  • The business can deduct general auto expenses such as servicing, fuel and tyres
  • The business can deduct the car loan interest as a business expense
  • Insurance for a business car can be cheaper than a personal car

Cons of Buying a Business Car

  •  Personal use of the car should be documented as this cannot be claimed by the business

Pros of Commercial Hire Purchase

  • Business can use the vehicle without owning a depreciating asset
  • Business can outsource things like servicing or selling the vehicle
  • Business avoids risk of loss through depreciation
  • There’s no deposit

Cons of Commercial Hire Purchase

  • Business does not own the asset it’s paying for

This should give you some idea of which way you want to go with your first business vehicle. If you want to find out more about business car loans or commercial hire purchase you can find it on our website.

No matter which way you want to go, make sure you talk to us at Gold Coast Finance. We can help you out with a finance solution to get your business car on the road to success.