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.

Outlines

00:00

🚗 How to Buy a Car Using Your Business

In this paragraph, Andrew Cartwright introduces an exciting strategy on how to buy a car under a business name, regardless of its size, without using personal credit or upfront money. He emphasizes the advantages of keeping personal credit separate and discusses the benefits of tax deductions and liability protection. Andrew shares personal insights, including how he's managed 275 cars under his business and obtained $8.8 million in business credit. He also hints at a major tax benefit expiring soon for certain luxury cars, explaining how to write off such vehicles in the first year.

05:01

💼 Leasing vs Financing a Car for Your Business

This section focuses on the options of leasing or financing a car under a business. Andrew breaks down the benefits of leasing, such as lower payments and potential full tax deductions on monthly payments. He explains that leasing is a common practice and is tax-deductible for most businesses. Additionally, Andrew provides insights on financing, noting that it allows owners to keep the car and offers tax benefits for expenses like maintenance and loan payments. He asks viewers to share their thoughts on what luxury car they see him in.

10:02

💰 Business Loans and Building Business Credit

Here, Andrew dives deeper into the financial aspects of buying a car using a business loan or line of credit. He underscores the importance of building business credit and its benefits, such as decreasing personal credit risk and expanding financial opportunities. He introduces Justin Merch, an expert in building business credit, and encourages viewers to seek his help for one-on-one guidance. He stresses that buying a car outright with business credit eliminates the burden of monthly payments and offers tax-deductible benefits.

15:04

🏢 Setting Up Your Business for Car Purchases

Andrew explains the steps needed to establish a business to qualify for car purchases. He outlines the importance of registering the business with the Secretary of State, getting an EIN (Employer Identification Number), and setting up a business bank account and website. These steps help build business credibility and credit. Andrew also touches on the importance of having a business phone number and ensuring the business is listed online, as car dealerships will check these details before approving a loan.

🚘 Pre-Approval and Best Practices for Buying a Car

In this paragraph, Andrew emphasizes the importance of obtaining pre-approval for a business car loan before visiting a dealership. This approach simplifies negotiations and speeds up the car-buying process. He recommends starting with credit unions for better rates and advises viewers to avoid wasting time at dealerships without financing in place. He also mentions Tesla's streamlined process for buying a business vehicle and underscores the value of using business credit for such purchases.

💡 Turning Your Business Car into an Asset

Andrew shares strategies on how to turn a business car into a money-making asset. He introduces the idea of renting out business vehicles through platforms like Turo or Car hire to generate income. He explains how some individuals build large fleets of cars under their business names and earn significant profits. He further discusses the potential for using cars as mobile advertising by wrapping them with company logos, thus generating additional revenue.

💼 Making Money with Business Vehicles: A Case for Luxury Cars

This paragraph highlights how specific luxury vehicles, especially those over 6,000 lbs like the Mercedes G Wagon or Tesla X, can qualify for significant tax deductions while also generating substantial rental income through platforms like Turo. Andrew shares examples of daily rental rates for these vehicles, noting that luxury cars can not only build business credit but also create a small side business or 'hustle' for extra income. The paragraph concludes by encouraging viewers to consider purchasing cars under their business names to maximize financial and tax benefits.

👍 Closing Remarks and Call to Action

In the final paragraph, Andrew wraps up by encouraging viewers to like, share, and subscribe to his channel for future business and financial tips. He reminds the audience about the advantages of buying a car through a business, the tax benefits, and the potential to turn a car into an income-generating asset. He signs off with his signature positive tone and a warm farewell.

Keywords

💡Business Credit

Business credit refers to the credit profile and financial reputation of a company, separate from personal credit. In the video, the speaker emphasizes the importance of building business credit to purchase assets like cars, homes, and equipment under the business name, thereby protecting personal credit and gaining financial flexibility. Business credit allows businesses to secure loans, leases, and other financial benefits without relying on the owner's personal credit.

💡Tax Deduction

A tax deduction reduces the amount of taxable income, which can lower a business's tax liability. The speaker explains how leasing or financing a car in a business name can qualify for tax deductions, such as deducting the entire lease payment or specific expenses like maintenance. He mentions that vehicles over 6,000 pounds, like a Tesla X or Mercedes G Wagon, could offer significant tax benefits under current tax laws.

💡Liability Protection

Liability protection shields a business owner’s personal assets from the financial obligations or debts of the business. In the video, the speaker highlights the benefit of purchasing cars and other assets in the business name, which offers liability protection. This strategy ensures that if something happens to the vehicle or business, the owner's personal assets remain protected.

💡Leasing

Leasing refers to a financial agreement where the business rents a vehicle for a set period, often with lower monthly payments than financing. In the video, leasing is described as a popular option for businesses because it can be written off as a full tax deduction. The speaker suggests this is a smart way to lower upfront costs while still benefiting from the use of the car in the business's name.

💡Financing

Financing refers to taking out a loan to purchase a car, where the business pays back the loan over time. The speaker contrasts this with leasing, noting that while financing offers the benefit of eventual ownership, only the loan interest can typically be deducted. However, the vehicle is considered an asset, offering potential tax benefits related to its use in the business.

💡Cash Purchase

A cash purchase means buying a car outright without financing or leasing. The speaker explains that businesses can use cash or business loans to purchase cars in full, which avoids monthly payments. He also mentions that cash purchases might offer tax advantages and can turn the vehicle into an income-generating asset, especially when combined with side business opportunities like car rentals.

💡Turo

Turo is a peer-to-peer car-sharing service that allows car owners to rent out their vehicles. In the video, the speaker discusses how businesses can list their vehicles on platforms like Turo to generate income. This strategy transforms the business vehicle into an asset that not only pays for itself but also generates profit through rentals, especially for luxury cars like Tesla or Mercedes G Wagon.

💡LLC (Limited Liability Company)

An LLC is a type of legal structure that offers liability protection to its owners while allowing the flexibility of a partnership. In the video, the speaker suggests setting up an LLC or other corporate structure to buy assets like cars in the business name. He explains that this not only protects personal assets but also makes it easier to build business credit and qualify for loans or leases.

💡Secretary of State Registration

Registering with the Secretary of State is a step businesses must take to legally operate and be recognized. In the video, the speaker explains that to buy a car in a business's name, the business must be formally registered, typically as an LLC, corporation, or sole proprietorship. This registration is necessary to open business bank accounts, apply for credit, and establish business legitimacy.

💡Business Loan

A business loan is a sum of money borrowed by a company to cover expenses or make investments, such as purchasing a car. The speaker mentions how businesses can secure loans to buy cars outright, which helps avoid monthly payments while still benefiting from tax deductions and the ability to generate income from the vehicle. He emphasizes the importance of building business credit to access these loans.

Highlights

Learn how to buy a car in your business's name, even if you're a startup, with no money upfront.

Buying a car in your business's name can help improve your personal credit while protecting your personal liability.

You can get significant tax benefits by purchasing a vehicle like a Rolls-Royce, Mercedes G-Wagon, or Tesla X under your business.

Leasing a car under your business name allows for a full tax deduction on the lease payment.

Financing a car under your business name allows you to write off the loan payments and all associated car expenses, such as maintenance and fuel.

Paying for a car in cash using a business loan can help avoid monthly payments while still offering tax benefits.

To buy a car in your business's name, you'll need to set up a business entity (LLC, S Corp, or C Corp) and apply for an EIN from the IRS.

Establish business credit by opening a business checking account and using business loans or lines of credit for car purchases.

Business credit can be built further by registering with Dun & Bradstreet or Nav, which can boost your credit profile.

Using car rental platforms like Turo can generate income to cover your business car's payments, potentially making it a free asset.

Businesses can wrap cars with advertising to create an additional income stream through mobile marketing.

Buying used cars under a business name can be profitable through reselling or using them in services like Uber or DoorDash.

Luxury cars like the Mercedes G-Wagon or Tesla X can be rented out on platforms like Turo for up to $400 a day, turning them into income-generating assets.

You can receive up to a million-dollar insurance policy on cars rented through Turo, ensuring liability protection.

Owning a vehicle over 6,000 pounds (e.g., Jeep, Land Rover, Porsche Cayenne) qualifies for a significant tax deduction.

Transcripts

I'm super excited to share this strategy

with you it's something I personally use

I'm going to tell you how I do it I'm

going to show you how you can buy a car

with your business no matter how big it

is or small or even if you're a startup

I'm also going to show you how to buy a

car in your business's name and may not

require any money out of your pocket at

all upfront and possibly even better

than even using your own personal Credit

in fact it'll help your personal credit

by buying it your business I'm going to

explain how that happens later because

you should never own a car in your real

name I have all my credit cards are in

business names my cars are in business

names my house is in a business name I

literally personally nothing's in my

name I've had as many as

275 cars in my business names $8.8

million in business credit for those

cars which was amazing you can get cars

and other assets in your business name

for tax benefits as well as liability

protection as well as it's just a smart

strategy this year might be the last

year you'll be able to get a significant

tax benefit from buying a car like a

Rolls-Royce like a Mercedes G wagon or

even a Tesla X that you can WR off in

your first year rather than waiting five

which is absolutely incredible it's like

getting a free car I'm going to share

with you the tips on how to get that

done as well as used cars for your

business so they pay for themselves over

time so you can make sure to stick

around to the end because I'm also going

to show you how you can make money with

that car as well so you can buy it you

can get it completely written off can be

free no money out of pocket and you can

make money off of it and I've done all

that my name is Andrew cartright I've

been here uh helping you out for got

over 15 years now teach you how to get

money leverage it and invested I can

relate to where you are been broken

homeless multi-millionaire four

different times and now we together are

buying companies I founded 32 companies

in 17 Industries and I've exited five

times and now my private Equity Fund

dragon and Angels is Buy companies

there's a form in the description called

epic 99 you can fill it out for free

there's no catch I put up the capital to

buy baby boomer businesses and we go

into partnership together these are

successful businesses you got to have at

least a 680 credit score pay your bills

and know how to run a business also

don't forget to grab your free stock

down there in the description and if we

do buy a business together you can count

on getting a car in that business maybe

even two when buying a car in your

business name you need to decide between

Leasing and financing with leasing you

can pay a small down payment then pay a

monthly payment and then give the car

back after 2 three or 4 years depending

on the term that you do this will have a

lower monthly payment and if your

business is set up correctly this is a

tax deduction literally you can deduct

the entire lease payment when you do

your taxes that deduction this isn't tax

advice you talk to a tax person for that

but it is a possibility when buying a

car this way I've done it my tax guide

did did it it was something that I could

do and also riding off an entire car

also I'd love to know in the comments do

you see me in a Rolls-Royce a Bentley a

Tesla X what kind of car do you think I

would be riding off just curious uh to

know would it be a G wagon I'd love to

know from you guys so leasing a car is

one of those things that people often do

and it's very easy to lease a car when

your business name in fact they think

you should right like literally the

leasing companies are set up that way

this is a pretty common and many

different types of people that drive

cars for their business will get a car

lease in their business name also you

can get a tax deduction on your lease

right off the whole payment let me tell

you the next option that you have that

might be a little bit better you can

also then finance a car in your own

business name you could come off of that

lease and buy the car and finance it as

well so you know if you really get

attached to that car this is one of

those options that is really because you

can write off the expense attached to

the car which is the most important

thing for example when I said you were

leasing the vehicle you can write off

the entire lease payment well with

financing a car you're only able to

write off the loan payments that you're

paying to the loan whatever you do as

far as tax deduction you can count the

miles that you drive or you can write

off all the expenses that are associated

with it let's say your oil changes the

maintenance or other things that create

a really cool tax benefit where like

personally you don't get those but you

do with your your business this is

essentially useful if you begin using a

company car as an asset uh which is I'm

going to talk about a little bit later

if you see the vehicle more as an asset

than a liability liabilities you lease

assets you buy now the third option that

you have when getting a car in your

business name is paying for the car

completely in cash this one can be very

useful especially if you hit the link in

the description where we got 10

different types of business loans for

you that you can get because you can go

there and you can get a business loan

business line of credit and actually get

the money to be able to buy the car cash

which as you know if you've been

watching the channel building business

credit is something that is very very

very viable here on the channel I talk a

lot about building business credit and

how it decreases the amount of risk to

your personal credit and allows you more

financial opportunity and the scale is

unlimited think about AT&T or apple

they've got like $800 billion do in loan

if you want more details and you're

interested in building your business

credit you can learn a little bit more

check out my friend Justin merch he

helps a lot of people can do a lot of

more in-depth stuff as far as building

your business credit I've got a link in

the description for Justin merch he is

cool he's a personal friend of mine and

he loves working with you guys and

helping you build your credit and

actually get your money it doesn't cost

you anything to get a consultation with

him he'll help you build your business

business credit fast and he's a guy that

I found that like literally would do it

our company just doesn't have the time

to actually do that but Justin will help

you do it and it's free to just talk to

him he's well respected in the credit

space and he's the perfect place to go

if you need one-on-one experience

because we all know it can be hard to

build business credit alone without a

coach because like the information is

just not all available and the banks

don't necessarily help you out so again

check out the link in the description

with Justin merch Consulting and tell

Justin that I said hi he'll be happy to

work with you he's he's a fun guy now

back to the getting a business loan many

people will think that they don't want

to get a car lease or a car loan because

they don't want a monthly payment well

buying a car for cash will eliminate

that from happening and you can do this

with a business loan this way once you

pay the car it's paid for and you don't

have any notes or things like that you

just have an expense that you're going

to pay to keep the car up just like that

financing the car the EXP expenses are

tax deductible so you can get the

benefit of that now in order to get

approved for the car in your business

name you're going to have to get an

actual business you're going to have to

go in business it's easier than you

think once you get it going more you'll

be able to get more funding options to

help your business you're going to want

to get business checking you're going to

have to open up some sort of

registration with the Secretary of State

either an LLC you can do it with a sole

proprietorship I don't recommend it

actually don't recommend any legal

advice this is just information

as Kevin Hart would say a limited

liability company or you can set up a

corporation it can be an S corp or C

Corp or nonprofit if you want to start a

nonprofit those can buy cars too the

next thing you want to do is go to the

IRS website within minutes you can apply

for what's called an EIN this is an

employment identification number this

will give you a tax ID that's just like

a social security number and that's what

you're going to use to be able to buy

the vehicle and also build a credit

report because if you do buy that car on

a lease or on a Finance deal they'll

report to your credit which will help

you get business credit cards you're

going to need a professional website

something quick you can go to Wix or

even Google sites and be able to put it

up there you also want to get special

number that you're going to set up for

that business because the actual Finance

guy is probably going to go to your

website and he's also going to probably

check your phone number to see that it's

an actual not a mobile number but

actually a business number I actually

have a video coming out soon that's

going to show you a cheap way to get a

business Business website and be able to

subscribe and set up an actual phone

number so you'll be able to do that

pretty quickly and you can get all those

things in just one day Most states you

can do it online within minutes once

you're a legitimate business and that

doesn't mean you're making money that

doesn't mean anything that just means

you went and registered it filled in the

information to get the LLC and the tax

ID number within 10 20 minutes you have

a whole company going to that secretary

estate site and getting that business

license once you have these five things

you can get a business credit

established you'll want to go to D and

Brad street Reger that or to nav which

is another place you can do credit boost

to even help you more or justtin merch

to help you too now I've got a lot of

videos on how to establish business

credit once you've done that you can

watch those videos as well so make sure

you check out that on the channel other

how to buy a a car in an LLC and build

that credit which I have even more

detailed in-depth stuff now that you've

have an established business and it's

easy to go to the car dealership and

start getting your car although before

you go to the car dealers dealers ship

and start trying to buy a car in your

business name I suppose you need to go

to lenders that will approve you so that

when you go to the car dealership you

already have the financing in place I

strongly recommend going to a credit

union first and then go down the list of

banks most banks will put a car in the

business name and you can go to the

dealership already approved and ready to

go so the car dealership can actually

sell you that car because that loan's

already established doing this will mean

that you can negotiate the price of the

car better and you'll be be able to know

that you're approved and eliminate any

of the stress or the extra add-ons that

the finance department may try and do

plus you'll lock in a great rate there

are lenders that specifically lend on

car businesses and some companies just

do that that's all they do you don't

want to waste your time going to the car

dealership finding the car and like

finding out that you have to go through

all these other lenders and then not get

approved because the finance guy is not

good you want to know that you're good

before you go there also you won't spend

four 5 hours you'll say I want that car

at that price and here's here's my loan

so if you want the money take it also if

you go to the dealership like Tesla it's

super easy to do this they're pretty

straightforward their prices don't

fluctuate it is what it is if you go to

tesla.com you can order your car and

even put how you want to register the

car and finance it I did this in my own

trust and business when I went to Tesla

you just need to make sure that you have

a real business that people can find on

online and additionally you can use that

business line of credit or other

business loans to buy that car as well

because that can be part of what you

finance in a business is the car that

you want need now this is the fun part

because here is where I show you how to

get your business vehicle essentially

paid off most people do get cars in

their business names for car companies

and then they drive around with

employees or drive around and do all

sorts of stuff with their car right well

getting a car in your business name can

open up doors to make money with your

car some people don't realize that they

literally can make money with their car

and put them on their business name and

it's an amazing way to make money not

only can you get the car in your

business name and then rent it to them

such as 40 or a Car hire you literally

can use them to be able to rent out your

car which means you put it on the site

you can leave it out front people can

walk up to the car open it with their

app they're fully verified and insured

go drive your car bring it back put gas

in it and you literally are going to

going to get paid for your car which

should be more than your car payment

which is crazy I know somebody that has

33 cars that they bought under their

business I helped them do that and then

I know someone else who bought six cars

in their personal name and can't buy

anym it's why if you're going to do turo

or any of those other rental car apps

you don't want to buy in your personal

name because you're going to be locked

in to only a few cars compared to

ramping up to 30 or 60 cars you can get

cars wrapped and put bus business names

on them as well if they're driving

around so that you can drive around and

make some extra money through

advertising literally promoting and

showing off Vehicles there's lots of

companies that'll do this you ever see

cars that are wrapped in some sort of

company well they're making money off

that businesses put their phone number

their website people can learn about

them by driving around it's like a

driving billboard and also you can

create an entire business with used cars

by reselling them for example you can

create an Uber business and taxi cab

business and cars can find drivers or

drive your car to be able to make money

and you get a split between that you can

also do delivery services such as Uber

Eats or door Dash where people can use

your car to be able to make money with

that and getting a car in your business

name makes it easier and also limits

some of the liability coming back on you

personally you can create not only the

business that you have but also you have

a business where you can make money off

of your car by turning it into an asset

assets feed Fe you they pay you

liabilities eat you they take money away

from you that's the difference make your

car an asset and it'll pay for itself

now like I mentioned from the beginning

of this video there's a huge tax

deduction that's currently written in

the tax code that may go away at the end

of the year for some very nice Vehicles

if you have a vehicle that's £6,000 lb

you might be asking yourself what

vehicles are £6,000 well Jeeps qualify

most of them Land Rovers as well and a

lot of pickup trucks that are over 6,000

lb you'll want to check to be sure a

Porsche Cayenne series also qualifies

for the deduction a Tesla X Mercedes G

Wagon if that's your ride a Rolls-Royce

so not only the cars that get zero Z

upfront that you can buy these cars

through the business but you can also

get a really nice car as well like that

G wagon just as I give you the idea the

kind of money that you can make with

these cars Mercedes G Wagon can make you

as much as a few hundred a day to rent

it on turo saw it even for as much as

$400 a day the Tesla X I've seen for

more between $100 to $300 a day so

getting a luxury car like this could be

a great way to buy a car on business

credit build your business credit throw

it on turo and make extra money and the

cars are insured up to a million dollar

I think it is is pretty incredible also

being able to ride off any service as

expenses so if you aren't convinced to

buy a car in your business credit and

make it a small business money maker

like a side business or a side hustle

then I've got one more thing that may

convince you just give this video a like

and a share and subscribe to the channel

for business and financial tips in the

future my name is Andrew cartrite love

you take care