New Pickup Truck - Best Way to Acquire?

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Marlago35
Posts: 11
Joined: Wed Sep 26, 2018 11:51 am

New Pickup Truck - Best Way to Acquire?

Post by Marlago35 » Tue Feb 12, 2019 1:18 pm

I'm in the market for a pickup truck that will be owned and registered under my business (home contractor / single member LLC).

Is there ever a situation where a lease makes sense for a business (intent to buy out at end of lease)?

This will be my primary driver for both work and personal, so likely many miles and wear and tear.

If a lease does not make sense, buy new? Buy used? Pay cash? Finance? Are there any best practices from a tax perspective that I should keep in mind when buying a pickup truck under the business?

Thank you.

lazydavid
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Joined: Wed Apr 06, 2016 1:37 pm

Re: New Pickup Truck - Best Way to Acquire?

Post by lazydavid » Tue Feb 12, 2019 4:38 pm

If it's over 6,000 lbs GVWR (and pretty much all full-size pickups should be) and you're planning on keeping it a while, it's far better to purchase. The IRS allows accelerated depreciation under section 179 for vehicles purchased and used exclusively for business. For vehicles meeting certain conditions, including those with a GVWR of 6,001 lbs or more, or those having an open bed at least 6' in length that is not accessible from the cab, you can deduct the entire purchase price in the first year of ownership. More details on section 179 deductions for vehicles here:

https://www.section179.org/section_179_ ... eductions/

forgeblast
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Location: PA
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Re: New Pickup Truck - Best Way to Acquire?

Post by forgeblast » Wed Feb 13, 2019 9:33 am

Before you start looking, sign up for the emails from the companies your looking for.
When I bought my ram, because I had a small business and brought my paperwork I was able to get an additional $1500, on top of the $1500 email flyer, on top of our union buying program. The little discounts will add up.

texasdiver
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Location: Vancouver WA

Re: New Pickup Truck - Best Way to Acquire?

Post by texasdiver » Thu Feb 14, 2019 5:06 pm

Marlago35 wrote:
Tue Feb 12, 2019 1:18 pm
I'm in the market for a pickup truck that will be owned and registered under my business (home contractor / single member LLC).

Is there ever a situation where a lease makes sense for a business (intent to buy out at end of lease)?

This will be my primary driver for both work and personal, so likely many miles and wear and tear.

If a lease does not make sense, buy new? Buy used? Pay cash? Finance? Are there any best practices from a tax perspective that I should keep in mind when buying a pickup truck under the business?

Thank you.
A lease can sometimes make sense if you have a larger business and are managing a fleet of vehicles. Good friend of mine had a florist delivery business with about 6 vans and drivers. Worked out better for him to lease because he was expanding and adding vehicles and the cash flow financing was easier that way. He would just call up his "guy" and they'd send out a new van when he needed one.

In your situation it almost certainly makes more sense to buy. Especially a late model used vehicle. There are a lot of base model fleet sales trucks that can be picked up for a decent price if you aren't that picky and are happy to get a typical base model white truck.

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