Entrepreneurship & Small Business

New Car options for newly started busines

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  • May 15th, 2006 7:56 pm
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[OP]
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Jan 25, 2004
3425 posts
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Ottawa

New Car options for newly started busines

I am just in the process of starting my own computer consulting business on the side, to see how I do. Business plan is drawn up, yadda yadda bing bang.

What happens yesterday? Car dies and it will cost more than the car is worth to replace it.

So now I'm in a bit of a pickle here. I was intending on waiting until September to replace the POS beast and to see how the side business was going... but I need to make a decision now.

Should I buy a new car? Lease a new car? Buy a 2 year old car? Buy the cheapest car I can find?
6 replies
Member
Aug 12, 2004
386 posts
7 upvotes
Calgary
I'd say just buy a car that's a few years old. That, or buy a beater that will last long enough to see how your business does. If you business does good, then you can lease a car as the payments can be written off as a business expense.
Deal Addict
Dec 5, 2005
1356 posts
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Can lease payments be written off if the car isn't explicitly used in the business (ie, for deliveries or going to clients, etc)?
[OP]
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Jan 25, 2004
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Div wrote:Can lease payments be written off if the car isn't explicitly used in the business (ie, for deliveries or going to clients, etc)?
I beleive so.
Banned
May 6, 2006
30 posts
Konowl wrote:I beleive so.
no, the % of the vehicle use for business can be
[OP]
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Jan 25, 2004
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want-a-C7 wrote:no, the % of the vehicle use for business can be
That's what I meant.
[OP]
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Jan 25, 2004
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So I think I'm going to get a line of credit to buy a lightly used car... around the 10k mark. Think it's risky to buy a new car when you are just starting a small business (and besides it'll be half for play and half for work). Don't know how this will effect me at income tax time though.

With the $200 I save a month since I quit smoking... it was tempting. But in true RFD fashion, losing that much money on a brand new car would be hard to swallow.

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