How to Purchase a Car through Your
going about buying a car through your business
Every now and then businesses need access to a vehicle, and sometimes to serve its
customers as well. Purchasing a car through your company name that will be in the service of employees is time-efficient and saves money, unlike
having the employees drive their own cars.
Buying a vehicle under a business name tends to last for a long time, but it will
be stress-free if you follow some simple rules.
Business’ credit rating
Paying bills on time, including the one of a credit card, regularly, ensures that
the company’s credit rating is perfect. Getting a small loan and paying it off in monthly payments is the perfect
start to buying a car through your business. Checking your business credit rating with reporting agencies is always a good idea. Review personal credit reports before you
decide to apply for a loan. If you find some errors, make sure to correct them before applying for a loan,
because lenders will check business and personal credit to make sure you are the good candidate for a
First, you must prepare a loan proposal, with all the details including why your
company needs a loan, what is the purpose of a vehicle you will buy, and of course, the information about your
company’s work. The down payment amount and the amount of a loan should be stated in the loan proposal, as well as
the marketing strategies and performances of your company, both past and current
Just in case, prepare business tax returns for the last two years, documentation
that indicates how big a share of the business is in your property, business bank account statements for the
previous three months, business tax identification number, and income and expense reports for the last year. These
are some of the documentation that the loan lenders may require you to provide.
The list of lenders
Once you have decided how big of a loan you need, it is time to look for the
potential lenders that will provide you with the money you need to purchase the vehicle. Searching for commercial
lenders online is one of the options. If you have all the needs set down, you can list the lenders and see which of
them is the most suitable for the loan. Going to the bank is a good start. However, commercial lenders are usually
more open to granting this type of loan.
Find a car dealership
Finding a dealership that finances and sells cars to business is essential. They
have various benefits, such as offering special programs and maybe discounts for buying more than one vehicle. Make
a list of dealerships that are nearby, but also offer a good price and quality vehicles and rate them in order to
decide which one suits best your preferences.
Furthermore, it is good idea to ask around at your colleagues and other companies
to see at what dealership they purchased their vehicles. If you find out the dealerships are not as affordable to
you, shop for a business vehicle at car auctions. They have numerous vehicles for you to buy, and sometimes they are less expensive than those
at the dealership.
The final step
Once you have find the car you want to buy, all you need to do is finalize the
price and deal with the paperwork. The vehicle needs to be registered to the company, and the name of the business
should be stated in the paperwork.
Purchasing a car through a company, and with a loan nonetheless, can be
complicated and time-consuming. Nevertheless, if the company’s credit is solid, you will not have the trouble
getting a loan and providing your company with the necessary vehicle.
All above images courtesy of
Creative Commons and Pixabay
Diana Smith is a full time mom of two beautiful girls and a passionate writer. In her free time she
enjoys writing about a variety of home and small business subjects, including marketing and