Picking a car for your business in 2018 – are you prepared?
Business Car Finance
Are you trying to make a company car work for your business in 2018? As long as you're prepared, it should be easily doable, especially with business car finance!
Finally, the holidays are in full swing! However, as a small business owner, you have to be a little extra cautious around this hectic time of year. It's easy to get lulled into a false sense of security when you're surrounded by the love of friends and family. But make no mistake, small business owners almost always have to be on the ball, especially at this time of year. You don't want to get behind on processes before the new year even starts - specifically your finances.
Here are some tips on how to go about selecting a car fit for you.
Know your budget
Before you begin, you must consider your budget. As this is the time of year when businesses assess their financials and see what they can spend come January you'll have the most updated data on what you can realistically spend on a car. This process can be relatively complicated if you don't know what you're doing, but here at Austrack Finance, we want to help you start the new year off on the right foot! This is where our business car loan calculator can help. It can give you an indication of what the car loan repayments will be on your chosen vehicle.
Car finance options include the traditional consumer car loan however business have the choice of a low doc or no doc car loan. A low doc car loan is easier than a traditional loan and is ideal for small businesses as it gives you more control over tax returns and other personal financial documents. With fixed interest rates, multiple tax deductions and GST benefits, it can work into your budget quite seamlessly. Our experts will sort through the whole process and even organise a pre-approved low doc loan for you.
Know what a company car's taxation entails
The Australian Taxation Office explains that there are also a couple of things to keep in mind before you fully commit to purchasing your new company car. For one, you should be aware that tax concessions are only for those using the car for the business. If employees use the vehicle, you will have to pay fringe benefits tax. This also means that travel from home to work is technically considered private travel. The ATO also explains that company directors are typically regarded the same as employees. Tax fringe benefits apply here as well. Always touch base with your accountant before making any significant financial commitments.
Do you research
Okay, now you're ready to get to the fun part! Once you've addressed these points, make a list of all the essential things your business stands for. Will the car be used for practical purposes, or just for a marketing standpoint? These are questions you need answer before you even think of the type of vehicle you need.
Shop around and make sure it's going to meet the needs of your business.
And don't forget, never go with the first car you see. Shop around and make sure it's going to meet the needs of your business. That Ferrari might look cool, but if your business is trying to promote charitable giving, then it might not make sense to go with that brand. Luxury cars don't exactly say 'giving', do they?
If you have any questions about business car finance, don't hesitate to contact us here at Austrack Finance today, and we can explain the in's and out's of a low doc or no doc car loan. We're here to help.