How do you buy a car through your business?
What steps do I need to take to buy a car through my business? I want to get an SUV or a van for my catering business to make it easier to transport things but I’m not sure how to buy it as a business vehicle rather than a personal vehicle.
Buying a car for your business can be an exciting venture, but it will take some work! Follow these steps to buy a car through your business:
- First, check your business credit score. Just like you need good credit to purchase a car individually, your business will need a good credit score to qualify for the purchase.
- Next, find a dealership that has a commercial sales department. These departments specialize in purchasing and registering vehicles for businesses.
- Now it’s time to choose your car. Make sure the car you pick is consistent with the type of work you’ll be doing.
- If you need a car loan, let lenders know you’ll be applying in your business’s name. This will ensure you get accurate quotes.
- Lenders will also usually pull your business’s credit report. If your credit isn’t strong enough, the lender may ask you to sign a guaranty. This means that you will assume responsibility for the loan if your business stops making payments.
Once you sign the agreement, the process is complete! You just bought a car for your business. Remember, it’s important to make your payments on time, or the late fees could impact your personal income.
While you’re buying a car through your business, take a moment to save on your own car insurance policy with Jerry. A licensed broker, the jerry app can help you compare personalized quotes from over 50 top providers like progressive and Nationwide for free. Once you find a plan you like, Jerry can help you switch policies and even help cancel your old one!
MORE: Van vs SUV
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