Should Your Business Buy or Lease a Company Car?

Should Your Business Buy or Lease a Company Car?When it comes to obtaining a company vehicle, you have a couple of options available to your business – you can opt to either buy or lease. Let’s examine these options in detail.

Buying a car

If you decide to buy a car, keep taxes in mind. Writing off the costs on your taxes can be done in two ways – actual costs or mileage – and there are limits on how much you can take in a given year. If you choose actual costs, you have to do that every year you claim the vehicle; you cannot change your mind later. There are different amounts you can write off depending on the type of vehicle you own, too, whether it is an electric car or an SUV. If you’re looking to invest in a hybrid vehicle for your business, be sure to keep in mind that it will no longer qualify for a tax break.

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