Business Vehicle Financing
Tags: behavioral, Business Vehicle Finance, Business Vehicle Financing, Business Vehicle Lease, Business Vehicle Leasing, debt, democratization, Finance, financial, institutions
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I really believe that you are making the complicated business system into a setup that is easy and mainly efficient. I praise your work and really think that you are doing great work.
typically, you don't get the title until you have satisfied your loan with whomever you had the loan with. However, if in your state the process is different, you can contact your states banking commissioner to find out about how to contact the finance company that is no longer in business. Second, as suggested by another, your DMV should have been notified of the release. Finally, if your state is like mine, you can sell the vehicle without the title and fill out a "lost title" affidavit that the new owner can take to the DMV or you may have to do so in order to get a new title which may show that there is no lien on the vehicle. Hope this helps.
As with many things, don't be blinded by the tax implications of the decision. Tax impact needs to be considered of course, but should NOT be the overriding consideration. It's just one of many factors.
Although you can take a business expense for the finance charges, the the total out-of-pocket cost for financing will still be higher even with the tax savings. The highest tax bracket is 35% but most taxpayers will see savings of 15% – 28% at most. From that standpoint, paying cash will make more sense.
However, other factors come into play, not the least of which is your cash-flow. Paying cash ties up capital that maybe could be better used for other business development. This is something that is often overlooked by the novice.
If you wind up having to take out a loan for other business purposes as a result of paying cash for an expensive asset you may well wind up paying a higher interest rate for an unsecured loan or having to guarantee it personally — other things to think about.
If cash-flow is a consideration and ease of bookkeeping is a factor, leasing a vehicle may be just the way to go for a business vehicle especially if you can accurately predict your mileage requirements. Leases usually SUCK for the average wage-earner but are often an excellent option for business use.
Resist any temptation to use the business vehicle for personal use, especially if you take a Section 179 deduction for the full purchase price. You don't have to account for business vs personal use, keep mileage logs, or other tedious bookkeeping tasks. If you own other vehicles for personal use, the IRS won't question your claim of 100% business use; just play by the rules and you'll be fine.
If your wife uses the business vehicle for business use, that's not a problem. But if she hauls the kids around or goes shopping with it — or if you do — you're risking having its use challenged. Bending the rules occasionally probably won't trigger an audit, just don't let it become a habit.
ja naja geht auf jedenfall aber GeileZone . com ist die heitige offenbarung für mich
I’m not a newbie in the business world. Only idiots that don’t understand the basics of cash-flow management, perhaps like you 13Dankster, are newbies. Did YOU even go to university?? How could anybody hold any position in the business world without knowing these simple principles? Sorry pal, but your Community College business diploma doesn’t cut it…
You obviously haven’t read the book. If you think every “upper management” person understands finance you are a newbie in the business world. There are dozens of fortune 100 companies that hire Joe to teach their management teams these principles so apparently there is a need for it.
Some states allow for a bonded title. Without knowing what state you are in, I couldn't tell you. The bank should be more than happy to help you out.
With a bonded title. in essence, the state has said, although you can't prove that you own the vehicle, you will receive a title for it anyway, if in the next three years, the original owner comes to dispute it, they can certainly do that. After three years the bonding is released and the car is yours.
In this instance, a bonded title with the bank having a lien, should be the route to take.
once you have the title, bonded or not, then the rest should be easy.
Keep in close contact with the dealership, if they go bankrupt, you really don't need your vehicles tied up in such a mess.
Yes, 13dankster, I AM a genius. You, obviously, are not. Look, if you never went to college and have a low IQ, then I’m sure his book might be helpful to you. For a financial illiterate, he can help you understand cash-flow management. Dr. Seus is very useful for 5 year old children too. Every book has its right audience and its natural target market. For guys like you, maybe his book is actually helpful, but for the rest of us this is really basic stuff.
OK Einstein. Clearly you are a freaking genius. Sorry to ever insinuate that this type of information could be valuable to someone. The fact is that there are thousands of UPPER MANAGEMENT personnel across the world that continue to buy this book and schedule the authors for seminars. Clearly they should be contacting you so they can learn from the greatest gift to finance ever known with your state college bachelors degree.
Ford no longer has an HR Department, Finance Department, or Administration/IT Department. These functions are now performed solely by robots.
We place a higher value on not losing money than on gaining it
No. Long story short, another entity will assume GM's loans.
good vid. insightful.
id bang her, too.
13dankster, everything he talks about are basic principles taught in first-year business school. How can “upper management” not already know all of this??? What type of business are you in where the so-called “upper management” is so uneducated?
excellent work!
Really helpful tips…. the way he present, even better;-)
As “Michael Gerber” would say: “Entreprenuers become Business Owners, because they are successful at what they do”… this doesn’t always mean they went to business school first…
My staff and I are reminded daily (as QuickBooks Consultants) of such the truth and many Wise and Successful Entreprenuers, struck out on the own, with courage and bravery – not business education.
sorry, none that i can think of…
Your best option is to get financing yourself and pay off the contract.
Even if the deal is "unwound" you will not get your trade-in back in most cases. There is a very good chance that it's already been sold. If this happens, you'll get whatever they allowed you on the trade.
For obvious reasons, you should NEVER sign a "spot delivery" deal. It should never take longer than 24 hours for an answer on financing a car note. With modern automated credit processing, 15 minutes is more like it. Here's a link specific to Arizona: http://phoenix.about.com/od/scam1/a/spotdelivery.htm
You don't have any right to "restructure the deal" for a lower price or to change any of the other terms. Your only option is to get your own financing and pay off the contract. I do this all the time to get rebates offered in conjunction with financing offered by the dealer.
More than likely that contract stated that the dealer could request the vehicle back within 5 business days if they could not get financing. The 5th business day will be June 5, 2006. If they don't demand the vehicle's return by then, the deal will stand as written. If they haven't located financing by then, they'll own the paper themselves and you'll make your payments directly to them. However, if you left the dealership with open terms on the financing, you have made a serious error in judgement and are probably being set up for a SCAM.
Check with a local attorney for advice specific to your situation. You may also want to contact the Arizona Attorney General's office regarding this SCAM.
If you can't afford to keep the truck,Sell it or let your ex have it if it's possible, either way do it soon. (Don't think of it as giving the truck to your ex, since what you're really giving him is the monthly payment.) Don't default on any like another writer suggested — that would be a VERY big deal. It will create a stain on your record which will hurt your ability to get financing in the future, and they will repossess the truck anyway if you default on that. If you need a vehicle, get a smaller, cheaper one that's used and is easier on gas. Call the hospital and tell them you can't afford to pay the $5,000, and start negotiating with them. They will negotiate with you because they'd rather see some of the money than none of it.
Also, what are the positive lessons about yourself that you can get out of this situation? (Not lessons about your husband, but lessons about you.) You're not going to have to live with your husband anymore but you're going to live with yourself the rest of your life, so what can you do differently — both with your thoughts and your actions — that would keep you from getting into this kind of situation ever again? Write them down on a piece of paper.
There are many things that can be deducted, but your best bet is to talk to a professional. They know the ins and outs of tax laws. If you are worried about paying him maybe you can offer him a trade of professional services. He does your taxes and you help with his computers.
Any time you have a repossession, voluntary or not, it will seriously hurt you credit score for up to 7 years. I would suggest trying to sell it yourself for as much as you can, paying off what you still owe, and getting a new one. You will lose some money, but in the long run it will be better because a bad credit score will effect everything from car insurance rates to mortgage rates. This could end up costing you thousands in fees in the long run.
Your accountant is right. But as a business owner myself, I prefer leasing a car to my name and get income tax breaks in the end. Business leasing is only good if you are getting a fleet of vehicle for use by your employees, you get discounts on gas too, but now a days, you can basically get the same benefit from your business credit cards so save some money on the insurance and keep your personal vehicle under your name.
I’ve read Joe’s book and it has dramatically helped our business. His seminars are as good as gold for upper management types who are busy but need to understand the basics of finance. Good stuff.
You are responsible for payment on the check. The check was taken in good faith that it could be collected on on the date you specified and you reneged. Better look for a job cause it looks like you may end up in court and have court costs on top of paying off the car.
Thank you for the useful information.
I’ve seen directors of companies just agree blindly to the numbers, oh they may ask a few questions to seem educated but on the whole the finance team are in charge.
I’ve also seen the finance team massage the numbers to make them fit.