FREE CAR! Buying A Car With Business Loans! Building Business Credit

Summary

Andrew Cartwright shares his strategy on how to buy a car in your business's name, offering significant tax benefits, liability protection, and potentially no upfront cost. He explains how business credit can help finance vehicles, the pros and cons of leasing versus buying, and the tax deductions available for certain vehicles. Andrew emphasizes the importance of establishing business credit and provides tips on using cars to generate revenue through services like Turo. He also highlights the benefits of making your car an asset rather than a liability, turning it into a money-making tool.

Takeaways

• 🚗 **Business Car Purchase Strategy**: Andrew Cartright shares a strategy on how to buy cars for your business, regardless of its size.
• 💼 **No Out-of-Pocket Expense**: It's possible to buy a car in your business's name without any upfront cost.
• 🏦 **Credit Benefits**: Purchasing a car through your business can actually help your personal credit score.
• 💼 **Asset Protection**: Cars should not be owned in your real name; using a business name provides liability protection.
• 💵 **Tax Benefits**: There are significant tax benefits to buying a car for your business, potentially writing off the entire cost.
• 🚘 **Leasing vs. Financing**: Andrew explains the differences between leasing and financing a car for business purposes, including tax deductions.
• 💸 **Cash Purchases**: Paying for a car in cash using business loans is an option that can eliminate monthly payments.
• 🏢 **Business Setup**: To buy a car in your business name, you need to have a legitimate business entity with an EIN and possibly an LLC.
• 📈 **Building Business Credit**: Andrew suggests consulting with Justin Merch to build business credit, which can facilitate larger financial opportunities.
• 🌐 **Online Business Presence**: A professional website and a business phone number are necessary to establish credibility for your business.
• 💰 **Making Money with Your Car**: Cars bought for business can generate income through rental services or advertising.

Q & A

What is the main strategy discussed in the transcript?

The main strategy discussed is buying a car under your business name for tax benefits, liability protection, and leveraging business credit rather than personal credit.

Why should one consider buying a car under their business name according to the transcript?

Buying a car under a business name can provide tax benefits, liability protection, and can help improve personal credit by not using it for the purchase.

What are the potential tax benefits of buying a car for a business?

Potential tax benefits include writing off the entire lease payment or loan interest, and in some cases, the entire cost of the car in the first year, depending on the vehicle's weight and usage.

How does the strategy help with liability protection?

By owning a car under a business name, personal assets are protected in case of legal issues related to the vehicle, as the liability falls on the business entity.

What are the three options for acquiring a car under a business name mentioned in the transcript?

The three options are leasing, financing, and paying for the car in cash using business funds or loans.

What is the significance of the vehicle's weight (over 6,000 lbs) in the tax deduction context?

Vehicles over 6,000 lbs may qualify for a significant tax deduction, allowing the entire cost of the vehicle to be written off in the first year.

How can one make money with a business-owned car?

One can make money by renting out the car through platforms like Turo, using it for advertising, or creating a business that utilizes the car for services like Uber or delivery services.

What is the role of business credit in this strategy?

Business credit allows for acquiring vehicles without impacting personal credit, provides more financial opportunities, and can be built by leasing or financing vehicles under the business name.

What steps are recommended for setting up a business to buy a car?

Steps include registering the business, obtaining an EIN, setting up a professional website, getting a business phone number, and establishing business credit.

Why is it suggested to get pre-approved for financing before going to a car dealership?

Getting pre-approved ensures that you have financing in place, which can help negotiate a better price, eliminate stress, and avoid potential add-ons from the dealership's finance department.

What are some ways to use a business-owned car as an asset rather than a liability?

Ways include renting it out, using it for advertising, or incorporating it into a business model that generates income, such as a taxi or delivery service.