Buying a car can be a daunting task, but with the right tools and advice, it can be made much easier. In this article, we’ll look at how you can buy a car through your business in the UK, and how to make the process as straightforward and efficient as possible.
What is A Business Account?
A business account refers to the type of bank account that can be used by a business to conduct transactions. This could include things like making payments to suppliers or employees, or depositing money to purchase stock.
There are several benefits of having a business account, including the ability to avoid fees that are typically associated with personal accounts. Additionally, businesses can access a wider range of services and products that are available to personal users.
How Does A Business Account Work?
When looking to buy a car through your business, you’ll need to work with a third party car dealership. Because buying a car through your business is not allowed in the UK. Instead, you’ll need to use a dealership that specialises in sales and marketing cars for businesses.
Steps Involved in Buying a Car through Business Account
- Find a dealership that specializes in buying/selling cars to businesses.
- Contact them and explain that you’re looking to buy a car through your business. There are two possible options, either it can be a new car or a second hand car.
- They’ll ask for the information about your business – this includes the name of your company, the type of vehicle you’re looking for, and the number of employees you have.
- Once they’ve received the needed information, they’ll set up an appointment for you to visit their dealership.
- At the dealership, they’ll explain how a business account works and show you some of the options available.
- After choosing what vehicle you want, they’ll process the purchase and get it delivered to your business.
Can I Buy a Car through My Business Account?
Yes, you can buy cars through your business account. To do this, you will need to have a valid business account with a reputable dealer. Once you have an account, you will be able to access the dealer’s inventory of cars. You can then choose which car you would like to purchase and submit your payment information.
Benefits Of Purchasing a Car through Business Account
Buying a car through a business account can provide several benefits, including tax breaks and the convenience of having your own finance team. Here are five reasons to consider buying a car through your business:
- Tax breaks – Buying a car through your business can provide significant tax breaks, including the ability to deduct the cost of the vehicle from your taxable income. In some cases, you may also be able to claim special depreciation rates, which can significantly reduce your tax liability.
- Increased efficiency – Having your own finance team can streamline the purchasing process and help you avoid delays and unnecessary paperwork. They will also be familiar with all the relevant taxation rules, which can save you time and money.
- Reduced risk – Buying a car through your business means that you are dealing with an established company with a reputation for reliability and customer service. This reduces the risk involved in making a purchase, ensuring that you get the best possible deal.
- Convenience – Buying a car through your business account provides you with the convenience of having your own finance team working on your behalf.
