As a business owner, you look for every available way to save more of your hard-earned dollars while also trying to make choices that will benefit your business. It can be a struggle to decide which choices make sense to help grow your company and which ones might cost you more in the future. But having a clear idea of why you should make a decision can help clear away the doubt and make you feel more confident that you are doing the right thing for your business. Today, we’re talking about the 4 benefits to buying a used commercial vehicle over new. So take it in and take notes because knowing these pros might just save you in the future.
It’s a well-known fact that vehicles aren’t cheap and when you factor in the additional cost of buying a commercial van or truck that may need additional specialty options which are unique to your business, those dollars can quickly add up. When you take into account just how much money your business can save initially just by purchasing a used commercial vehicle over a new one, it’s no wonder that so many business owners are deciding to buy used and save more of their companies money for other improvements. While a used vehicle in the past may have carried with it negative connotations, improvements to engine performance as well as an ever-growing demand for higher quality vehicles have created an environment where cars are lasting longer than in years previously and making the purchase of a used car that much more advantageous. In fact, many running vehicles on the road today have higher mileage on them than seen 30 years ago!
Saving in the purchase price isn’t the only monetary advantage associated with buying a used commercial vehicle but one of the largest plusses for not losing money has to be in less depreciation on a used commercial van or truck over a new work van or truck. Experts estimate that cars can lose as much as 19% of their value in the first year and an additional 46% within the first three years. Unfortunately, that drop in value is something you won’t recover when you go to sell or trade it in, meaning you are absorbing the loss when you’re ready to get into a newer vehicle.
Before you’ll be able to put that work truck or commercial vehicle you just purchased into your fleet of vehicles, you’ll have to make sure it’s insured in order to be road ready. A higher price tag on the lot means a higher price tag to replace it, and in turn a higher premium you’ll be paying each month to insure it. Whereas a commercial van or work truck that’s purchased use will not only cost you out of pocket initially but the months ahead in insurance rates.
Last but certainly not least… the tax benefits! You might not have heard about it but Section 179 deductions offer business owners an opportunity to deduct the full purchase price of a commercial van, work truck or work van in the first year of use if it is used predominantly for business. Similar to how business owners currently write off depreciation of an asset on their taxes each year for their business, Section 179, depending on the percentage of your business usage, allows you to expedite that depreciation instead of spreading it out over the life of the asset for the business.
How do you know if the commercial van or truck you’ve been eyeballing qualifies? As always, check with a trusted tax accountant or advisor to find out if your used commercial van or work truck qualifies. These are the general for Section 179:
- Must be placed into service before the end of the tax year
- At least 50% of its use must be for business
- Purchased from a dealer either new or used (no private sellers)
- Deduction must be taken from profit and not loss
If you find yourself searching for your next used SUV, minivan, truck or car to fit your needs and your budget, we invite you to check out our current inventory of Used Trucks, Vans, SUVs and Cars. At Broadmoor Motors, we specialize in finding the right used minivan, truck, SUV or car to fit your personal or business needs, all while giving you the best deal we can on both your purchase and trade in. Our family has been in the car business for over 60 years and continues to be family owned and operated in all of our Caledonia, Hastings and Wayland locations with financing available to those who qualify. We will find you the right vehicle to fit both your budget and your needs in a pressure-free environment.
Check out our reviews online and buy with confidence!! Family Owned & Operated and with Financing Available, we stand behind our Vehicles and our Warranty so you can be assured your used Car, Truck, Van or SUV will be reliable! Broadmoor Motors is your local choice for Car Sales in the greater Hastings, Middleville, Caledonia, Grand Rapids, Wayland, Byron Center, Dorr, Hopkins, Kalamazoo, Battle Creek, Lansing, Lake Odesa, Kentwood, Holland, Zeeland, Moline, Cutlerville, Wyoming, Hudsonville, Grandville, Jenison, Hamilton, Ionia and Allegan. Ask about our BMG Protection Plan, this is not an aftermarket product! area. Let Broadmoor Motors save you time and money when buying your next quality, Pre-Owned Car, Family Minivan, All Wheel Drive SUV, Commercial Van or Work Truck. Whether you need to replace your current car, minivan, truck or SUV with a great used vehicle, we can help you out. Broadmoor Motors is here for all your Car Sales, and Auto Service needs in the Byron Center, Kentwood, Caledonia, Middleville, Hastings, greater Grand Rapids, Wayland and Barry County area. With three locations to serve you in Wayland, Hastings and Caledonia, we’re here for all your Sales & Service needs. Give us a call at 616.698.9595 in Caledonia, 269.397.2400 in Wayland or 269.320.6304 in Hastings to see how we can get you back on the road!