How To Buy A Car For A Business May 2026

Standard passenger cars have lower caps. For 2026, the first-year limit is approximately $12,200 , plus an additional $8,000 if you apply bonus depreciation, for a total of $20,200 .

In 2026, the Section 179 deduction allows businesses to immediately expense the cost of qualifying vehicles rather than depreciating them over several years. how to buy a car for a business

Full ownership, builds equity, no mileage limits, and unlocks the largest Section 179 deductions . Cons: Higher upfront costs and monthly payments . Leasing: Standard passenger cars have lower caps

The right choice depends on your cash flow needs and how long you plan to keep the vehicle. Full ownership, builds equity, no mileage limits, and

To qualify for any Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time .

Mileage restrictions and you don't own the asset at the end . 3. Financing the Purchase