Many small business owners must rely on a company vehicle in order to make delivers, conduct business, or assist employees in doing their job when on call or out on the road. If this is a possibility for your business, there are some basic things you’ll need to know when beginning the process of purchasing a car or truck and allowing your employees to operate it. In this series, we’ll take a look at helpful tips to keep in mind, according to the U.S. Chamber of Commerce, Small Business Center. If you know that you'll need to use a car or truck in your business, you will find this process useful for obtaining one: Consider whether you can use a vehicle you already own. Do you really need to go and lay out money for a vehicle? Depending on both your business and personal situation, converting a vehicle that you already own to business use is probably the most cost-effective option for you. This lets you put your money to better use elsewhere in your business. Consider purchasing a used vehicle. If you've decided that leasing is not an attractive alternative for obtaining the vehicle you need, we strongly suggest that you consider purchasing a used vehicle rather than a new one. Vehicles are bad investments, and the difference between what you'll pay for a new vehicle versus a used one can probably be better spent on other areas of your business. Our discussion of used vehicles can help you to get one without getting burned. Explore leasing a business vehicle. If you've thought about your business and you're convinced that you need to get a new vehicle rather than a used one, you should consider the advantages and disadvantages of leasing rather than buying a vehicle. Consider the tax consequences of obtaining a vehicle. Did you know that if you purchase a vehicle, you may have to pay substantial excise taxes? Did you also know that there are certain tax breaks available to you if you buy an electric powered vehicle? And of course the major issue, if you use vehicles in your business, is keeping adequate records of your business usage. Before you obtain a vehicle for you business, be sure that you understand what it will mean for you when it's time to file your tax return. Once you've decided to purchase a company vehicle, you'll need to consider who will be driving it. In the next part of series, we'll address this issue. Source: U.S. Chamber of Commerce Small Business Center
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