As a business owner, you use your car a lot driving to meet clients or negotiate deals with suppliers. Sometimes, you may even bring merchandise for your store in your car. This means that you are actually using your car for business purpose, and this makes you eligible for instant asset write-off under the rules set by the Australian Taxation Office (ATO). We want to make sure that you benefit both from this tax incentive and from the use or a reliable vehicle, so we will show you how to select the best car for small business.
A Few Words on Instant Asset Write-Off
Finding the best car for business if you want to benefit from the ATO tax incentive means that:
- You must purchase and start using the asset during the current financial year
- You can write-off only the part of value corresponding to the proportion of use for business purchases
- The value of the asset must be under the car limit threshold set by ATO for the respective year.
In the financial year 2021-2022, the car limit is AUD 60,733. The experts at The Vehicle Brokers will help you figure out the best option in terms of car model, price and financing plan, so that you may benefit from instant asset write-off at the end of the financial year.
Our Recommendations for the Best Car for Small Business
Here are some vehicles from various classes that you may consider when looking for a car to use while running your business:
SUV: Hyundai Tucson
Smooth lines, stability and perfect control while driving in all kinds of weather and low maintenance costs – there is no wonder that Hyundai Tucson won the best car awards in Australia in 2016.
This SUV has a professional look, ideal for going to business meetings, without putting a hole in your budget. It is available in two versions: the 2.00 litre petrol and 2.00 litre turbo diesel models. The petrol model is more affordable and makes an excellent choice if you need to drive a lot on a daily basis.
Utility Vehicle: Toyota Hilux
Are you offering at-home services or supplying your store with merchandise? Then this is the best business vehicle for you. The generous boot (perfect for carrying various supplies, tools and equipment) and the reliable driving experience make Toyota Hilux one of the top-selling cars in Australia.
Moreover, you can get it for a price that is just below the car limit for this year set by the ATO. And, when you are not driving it for business purposes, this utility vehicle is great for going on trips with your family, as well.
Sedan: Mazda 3
We recommend Mazda 3 as the best car for small business for two reasons. One is its sleek design, giving it a luxury look for an affordable price. The other is the eco-friendly technology, resulting in low CO2 emissions. These two features made Mazda 3 a top selling car in Australia in 2018.
For business owners, it is a great choice for driving to business meetings. Plus, this car model has a low depreciation and high residual value when you decide to trade it off.
Mini: Toyota Yaris
Affordable, compact sized and easy to drive on busy streets, Toyota Yaris is a great small business vehicle you can get for under AUD 20,000.
Its well-known “big small” design gives you plenty leg room inside, while you can snag any parking spot, no matter how tight.
Moreover, you get a ton of modern safety features and a fully redesigned dashboard if you choose a newer model.
Luxury: Audi A3
If you want to impress clients and experience a smooth driving style, Audi A3 is the best car for small business.
Priced just under the AUD 60,000 ATO threshold, this luxury sedan has one of the most beautiful designs and an ergonomic dashboard, built around the driver.
No Time to Choose? We Can Do It for You!
“I have no time for buying a car for my small business, what do I do?” The answer is: come to The Vehicle Broker. A trusted car broker will find the best car for small business and make sure that it qualifies for the instant asset write-off. Time is money, so get on with your business and we will get you ready to drive around within days!