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If you and/or your employees are racking up a lot of miles on a personal vehicle for work purposes, then it may a good time to look into buying a company car. During periods when interest rates are low, there are some pretty attractive financing terms available. And there are always plenty of good deals available if you’re willing to shop around and use your negotiating skills.
Before setting out for the car lots in search of your company vehicle, make yourself familiar with these 4 tax and financial considerations to find the right car, at the right terms, to suit your business:
With the preceding information in mind, you should be well-equipped to find a good choice for your company at a good price. But because some of the financial calculations discussed here depend on current tax law, you’ll probably want to talk with your tax advisor about the “buy versus lease” decision and utilizing the proper write-offs before committing to buying your new company car.
Note: This post was originally written by Gregg Shoenberg in 2012. It has been updated as of September 2019.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.