While a major corporation can easily afford an entire fleet of shiny new vehicles, many small companies struggle to buy one cheap car. Finding cars, trucks and vans that are affordable and look presentable can be a challenge. However, there are several ways for a small business to buy cheap cars.
Look for Tax Credits or Deductions
Small business owners that have a specific budget for buying a new car but don’t like the appearance and features in the economy models they can afford may want to consider buying the vehicle as a consumer so they can take advantage of tax credits and deductions. While the popular US Cash for Clunkers program has been phased out, there are several other incentives still available.
- State and local sales and excise tax deduction- According to the IRS, people who buy new cars, some new trucks and new motorcycles may qualify for a deduction on their 2016 tax return. (This is the return that is due in April of 2015.)
- Tax credit for hybrid cars- While fueleconomy.gov warns that this tax credit is only honored until each car manufacturer sells 60,000 models, there is still money available for tax credits on some hybrid cars.
Avoid Extras When Shopping for New Cheap Cars
Of course, even the cheapest new car can be too pricey after every upgrade available is added on. When buying a company car or truck, smart business owners refuse all upgrade offers. They know that as long as the car looks presentable on the outside, the fact that it has heated seats and a top of the line stereo system inside does nothing to increase their profits.
Search for Used Company Vehicle Sales and Auctions
A major home improvement company in the Baltimore metro area recently sold a fleet of used cargo vans to employees, local small businesses and other interested parties. A group of power related companies auctioned off many different vehicles at a public auction. While these vehicles were certainly not new, they were in fairly good condition and looked very presentable. Usually, by making a quick call to local companies, a new business owner can find out if and when sales are planned. There are also several government sites that offer used car and truck auctions.
Of course, there are some additional costs involved when someone is buying a used cheap car from another company instead of buying a new vehicle. Often, the car’s interior will need to be detailed to remove stains and objectionable smells, such as that of secondhand smoke. In many cases, the new buyer will also need to have a car repainted to cover the previous company’s logo.
Although it is harder to find cheap cars for small businesses than it is to buy a shiny new car right off the lot, smart entrepreneurs know that it is worth the extra work. After all, any money they save by buying an inexpensive company vehicle is money that can go toward growing their new businesses. These entrepreneurs are happy to search for government incentives or head to used company vehicle sales to find what they need at a low price.