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!
Liz Jenson
Answered on Nov 15, 2021

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free