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How To Invest in A Vehicle For Your Small Business

17 January 2020 No Comment

Statistics show that there are 30.2 million small businesses recorded in the United States from 2017, and the numbers are still growing. The U.S. Census Bureau stated that there were around 47.5 percent of the total workforce employed in small businesses. However, these numbers can also spell competition if you are planning on setting up your own shop too. Depending on the type of business that you will be operating, investing in a vehicle may give your company the edge it needs.

Look For Reliability And Dependability 

The dependency and reliability of the vehicle are factors that you need to consider if you are planning on investing in a car for your business. JD Power provides useful insights on the dependability of various makes and models based on the reviews of long-term car owners. It is also important to research your potential vehicle.This way, you will be able to choose the best vehicle that will meet the needs of your business.

Understanding The Cost of Purchase And Maintenance 

Buying a vehicle for your business means spending money on insurance, registration fees, maintenance, and repairs. Take note that a car with over 15,000 miles will cost you around $8,469, based on the figures recorded by AAA in 2017. On the upside, the amount spent on your vehicle, including its costs and depreciation may be considered as a tax deductible.

Preparing How Much You’ll Need To Spend

You’re probably thinking how much money you will need to spend when buying a vehicle for your business. Although it is tempting to splurge on a company car, financial experts recommend that you spend no more than 10% of your salary on a car loan. And you shouldn’t spend over 20% on the total expenses on your car. This includes gas, repairs, insurance, and maintenance just to name a few. With this in mind, you will be able to estimate how much you can afford to spend on buying a vehicle for your business.

Setting up a small business is a huge leap as it means additional expenses every month. If you are considering getting a vehicle, there are a lot of factors that you need to take into consideration from your budget to the vehicle you want. This must also include the cost of running, maintaining, and repairing it as well.

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