If you’re running a small to medium enterprise, chances are you wouldn’t get far without your car. And because a car is a long term investment that will directly impact the efficiency of your business, you’ll want to make sure you choose the right car to make business run smoothly.
Today we’re going to look at some of the most popular cars that Australians are purchasing for their businesses.
At the end of the day, a car is a long term asset you’ll purchase using a loan (a liability), so you want to consider how much you should spend on the car.
Part of this means knowing exactly what the car will be used for, and eliminating unnecessary features. This means your car will have maximum efficiency within your business, and you’re not paying for features and other stuff you just don’t need.
List out all the things you’ll need to do using your car in your business. Once you’ve got this list, you’re ready to find a car that will efficiently and effectively perform these tasks, and will be a true asset to your business.
For example, if you are looking to save time and money on courier services, a small second-hand, compact car will probably do the trick. If you’ve got a trade and you need to bring your tools with you, then you’ll need a van or ute.
The key is making sure that you get just what you need, not more and not less, and your new chattel mortgage will help your business to grow.
If you running a small business with a turnover of less than $2 million, you can look for cars that cost under $20, 000 including the GST. Your business can claim the entire purchase price of the vehicle under the accelerated depreciation scheme.
For a detailed look at how you can use this scheme to buy a car for business, check out this article which explains how your refund is calculated using your business taxable income, and taking into consideration how much the vehicle is used for your work.
You should definitely consult your tax professional before making a decision to buy a new vehicle for your business.
The best way to make this decision is to go back to the list you made in step 1 and to consider how your car is going to be used as an asset in your business, and how long you’re likely to keep it for.
If you need the car for the long-term, beyond the end of the chattel mortgage term, then it will make sense to buy a new or certified car that has a high residual value and is at the top of its lifespan.
If you don’t use the car a lot, it’s wise to make a smaller initial outlay and buy a used car that won’t gather too much wear and tear. And if things change in the business, you can always sell the car and upgrade when that time comes.
Dealer certification first applied to luxury model cars that have been inspected, refurbished and certified by the manufacturer’s factory trained mechanic.
They’ll usually come with an extended warranty, and they’ll have had one owner and be less than 6 years old.
When you’re looking for a suitable certified car, make sure that you know who has certified the vehicle - is it the manufacturer or just the dealership? You’ll want to understand exactly what is being guaranteed so you know if you’re truly getting a reliable car with maximum lifespan and high residual value.
This is a popular car for government and business alike, and you can purchase the 2016 model for under $20k to take advantage of the small business tax break.
It has a 5 star ANCAP safety rating and all the basics you need for safely driving your business.
This is a super-handy easy to park city run-a-bout that falls comfortable under the small business tax break. It looks sharp, with sharp steering and reputation as a very reliable car.
There’s not much room in the backseat, so if you’re not expecting to have passengers often and you want something chic for your business than this car will compliment a modern, stylish image.
A super efficient and super safe small car with a little more room that the Suzuki. You can choose a hatch or sedan, and a new model once again comes in under $20k.
The Hilux is a real workhorse that won’t let you down, with plenty of power for towing or navigating rough roads. It’s not the smoothest ride on the inside, but if what you really need is a car that can handle anything the environment throws at you then you’re probably happy to make the extra effort to drive this beast on paved roads between your destinations.
There’s even an air conditioned cooler box, so when the hard work is done you can freshen up with an ice cold drink.
This ute is made to get the job done. It’s not plush with creature comforts, but it’s reasonably easy to drive loaded or unloaded. It can handle whatever weight you throw at it, and has enough space and features to make it comfortable for a solid day’s work.
If you need to cart stuff around then this is modern van is an option you should consider - whether it’s bags of coffee, market goods, photography equipment - you’ll be able to fit it in the back.
For an idea of what business with a Kangoo van will be like, check out this review by a couple who own a cafe business in Sydney’s eastern suburbs.
If you’re considering how you can make your business more productive while taking advantage of the government’s small business tax break, you might want to consider getting a quote for a chattel mortgage for your business.
If you want more information right now, it’s easy to call 1300 722 210 to get a quote for a chattel mortgage car.
Or if you’re short on time, you can fill out a pre-approval form. With this information, we’ll be able to get in touch with the info you need to get the right car loan for your business.