How To Buy A Car For A Business May 2026

For 2026, bonus depreciation is scheduled at 20% after applying Section 179 limits, though some specific "heavy" vehicles may still qualify for 100% bonus depreciation under certain legislative rules . 2. Choose Your Acquisition Strategy: Buy vs. Lease

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 . how to buy a car for a business

To qualify for any Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time . For 2026, bonus depreciation is scheduled at 20%

Lower monthly payments, easier to upgrade to newer tech every 2–3 years, and simpler tax deduction of monthly lease payments as a business expense . Lease Standard passenger cars have lower caps

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

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