7 Tips on buying a car for business use
Thinking about buying a vehicle for your business? It's a good idea to familiarize yourself with the different kinds of commercial auto coverages you might need. You should also consider your budget, type of vehicle, financing, and safety features. Keep these helpful tips in mind when purchasing or leasing a commercial vehicle.
1. Commercial vehicle cost planning
Put your planning skills to work when budgeting for a company vehicle. Besides the sticker price, consider expenses like gas, maintenance, and taxes, along with the cost of commercial auto insurance. You should also investigate tax deductions. Businesses may be able to write off vehicle depreciation over a period of years.
2. Pick the right vehicle for the job
When choosing a commercial vehicle, consider important factors like size, accessibility, fuel efficiency, cargo space, and how well it fits your business needs.
Think about how you'll use your vehicle day to day. You may only need a company car to get from one location to the next or a commercial van to make local deliveries. But if you work in an industry like construction, you could need a heavy-duty pickup truck with towing power or a flatbed truck to haul materials to job sites.
3. Add commercial vehicle safety features
You want your drivers to get from point A to point B safely. When you're buying a business vehicle, consider features like advanced braking systems, blind-spot monitoring, and GPS tracking to reduce the chance of accidents or theft. They can also help lower your insurance premiums.
Safety can lead to savings
Progressive Commercial rewards safe commercial drivers through programs like Snapshot ProView ® and Smart Haul ®. See if your business is eligible and explore other ways to save on your commercial auto policy.
4. Put the vehicle in your business's name
Wondering if you should buy a car through a business or personal account? If you register the vehicle under your company's name, you may be able to deduct business-related expenses like mileage, gas, insurance, maintenance, repairs, and depreciation. If you get hit with a claim, this can also help protect your personal assets.
5. Boost your brand
Vehicle branding for small businesses can be a smart move. You can wrap vehicles with your name, logo, and contact information to get seen by more people. It turns every trip into a chance to promote your company and keeps your business top of mind.
6. Consider your financing options
Should you buy a new set of wheels to get your small business moving, or is a budget-friendly used vehicle the smarter choice? Maybe you're leaning toward the flexibility that leasing offers. Each option has its own set of benefits and financing considerations.
A new vehicle gives you the latest technology, manufacturer warranties, and that new car smell, while a used one can save you money upfront and might have lower insurance premiums. Leasing, on the other hand, allows for greater customization and control for growing businesses. The right choice is the one that fits your needs, goals, and budget.
7. Get the right insurance
Consider the type of insurance you need whether you're buying a car for business or leasing a small fleet of company vans. This isn't the same as the coverage you have on your personal automobiles. Commercial auto insurance is built for business use, and getting the right commercial vehicle protection helps keep your operations running smoothly.
Whether you finance, lease, or own your business vehicle, you need coverage that shields you in case of an accident. That's where commercial auto insurance comes in.
Coverage requirements vary based on the state you're in. If you need commercial auto insurance in California, New York, or anywhere in between, Progressive Commercial can help you get coverage. We offer commercial auto insurance in all 50 states.
What does commercial auto insurance cover?
A commercial auto policy covers liability and physical damage for your vehicle, whether it's a car, truck, or van. It pays for third-party injuries or property damage your vehicle causes. You can also get personal injury protection for you and your passengers, and collision insurance for your commercial autos.
Progressive Commercial offers additional commercial auto coverages, including:
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Progressive Commercial insures more than 2 million commercial vehicles. Our insurance experts can help you choose the coverages that fit your business needs and budget.
