What you should know about using your car for business

Whether you are an entrepreneur or the owner of a large company there are a few things you should know about using a vehicle for business.   Besides insuring the car, you have been trying to find ways to get money back on your taxes. Have you been trying to write off 100% of your leased vehicle, only to find that you can deduct a percentage and not the whole enchilada? Nonetheless, we thought we would give you some hints on some things you should know when using a car for business.

 

So you just purchased a pickup truck for your landscaping business.  The first thing you will want to do is to call two very important people.  First call your Tax Preparer or accountant then call your Insurance agent.  You will want to check with your agent for the following:

1.    If you should take out a higher liability insurance.

2.    If you should have a commercial policy and what is the difference between that and higher liability.

3.    If you have employees driving your vehicle should you carry a special policy for them? Who is covered?

Now that we have figured out what to ask the insurance agent, what do we ask the accountant? 

The accountant will tell you to keep a log of everything.  This would be perfect if you had a GPS that logged your every move, but that’s just not practical.   You also have to be realistic about using the vehicle for personal use as well as business use. 

To determine the business-use percentage for a mixed-use vehicle, divide the business miles by the total miles driven, for example, 7,000 (business miles)/10,000 (total miles) = .70, or 70 percent.

If this doesn’t work then on January 1^st in big red letters on your log sheet or calendar write odometer and then write the mileage. After you have logged that then write in big red letters odometer to remind yourself when you need to re-log the mileage.  This beats the heck out of keeping a log every time you make a trip to the office supply store. 

These are just a few areas to consider when using your car for business.  With the right accountant or tax prep person and a good insurance agent your company vehicle should be ready to go to work, with you behind the wheel! 

Ask us about our lease programs for tax deductions.

5 Reasons to lease your next car you can tell Grandpa about

My grandfather was never a fan of purchasing a new car, however he didn’t understand computers either.  I think you would agree that we are a lot smarter than our Grandparents were.  We are in the information phase.  We know more now than ever before so why do so many people insist on purchasing a new car and think like our Grandparents…”Lease Bah! Humbug!  You’ll never own it!” my grandfather would say.  If he were around today I would argue 5 strong points on why a lease is the way to go. 

Reason 1.) You only pay for the ½ of the car you’re using.  The average driver trades in their vehicle within 3 years of using it.  You don’t own the car until it’s paid for.  The bank owns your car for typically 5 years.   So leasing provides you freedom to walk away.

Reason 2.) Walking away is sometimes better! If for whatever happens in the auto industry that makes a vehicle become less of a value than Kelley Blue Book, there is a risk for losing money on a purchased car. If you lease you give up the car after the lease is over without it affecting you. A vehicle aslo depreciates in value the second you drive it off the lot. With a leased car, you aren’t soaking up the negative equity. The moral of the story is “Cars are not investments Grandpa”!

Reason 3.) You can’t put over the mileage on them.  The average commuter only racks up 12K miles per year on their vehicle. The leasing programs tailored the allotted mileage based off the averages.  If you think you might drive more than 12k per month then ask us about other incentives for driving more than 12k.  Most manufactures offer a higher mileage program.

Reason 4.) You are always in warranty and never have to worry about repairs when you lease.  Almost every manufacturers warranty is 3 years of 36k miles whichever comes first.  The lease is in line with the warranty for good reason.  This makes the manufacturer eligible to sell the vehicle again after it passes a 100point inspection.

Reason 5.) You can purchase and sell your leased car.  That’s right you can purchase the car if you decide to keep the vehicle.  If you should decide to purchase your leased car, you will then be buying a used car.  So essentially the manufacturer absorbed the negative equity the car may have had. You can also sell your leased car to someone. Track down the exact dollar amount you'll need to pay to purchase the car at the end of the lease. In many contracts, this means the car's residual value plus a purchase-option fee ranging from $300 to $600.  Call us today and we’ll tell you the rest! 

P.S. Grandpa was smart, but he wasn’t always right! 

What Exactly is the Autobahn?

When Autobahn comes to mind, I can’t help but reference Michael Jackson’s hit “Speed Demon, “ a fast-paced song about the repercussions of speeding down an infinite highway.  THAT is how I picture the Autobahn.  Millions of people have heard references to the famed speedway, but what exactly is it?  Is it a motorway system that lasts an eternity without a speed limit or a racetrack for the fastest cars in the world?  In today’s blog, we break down WHAT the Autobahn is and how you can see it for yourself.

The Autobahn, by definition, is a superhighway or expressway in Germany that stands as one of the last places on earth where you can drive as fast as you want.  The highway is in no means a free-for-all, with some sections of the autobahn having speed limits, though great stretches still remain unrestricted. 

The Autobahn national highway system stretches over 6,800 miles and is designed to connect all of Germany’s major metropolitan areas.  The presumption is that there are unlimited speeds on the entire Autobahn, but many heavily trafficked sections of the freeway have speed limits in the 50 to 75 mph range. The suggested speed for the unlimited sections is 81 mph, though various speedsters and adrenaline seekers routinely break the fold.

So, you must be wondering HOW fast someone has ventured into the record books.  Well, in 1938, driver Rudolf Caracciola set an autobahn speed record of 268.8 mph.  WOW. 

What Exactly is the Autobahn? Find out in our blog!

The Top Car Technologies Voted By Car Buyers

A J.D. Power Report discussed car buyers’ favorite technological advances when it comes to their vehicles.  We all play victim to the vast power and influence of electronics.  From the DVR recorder in our homes we use to record shows like Desperate Housewives and Top Gear, to the iPad that sits on our lap at the dinner table, we’re all connected in one way or the other.  At the dealership, we love new technology.  So, according to J.D. Power and Associates, these are the top 10 technologies car buyers’ need:

1. Run-flat tires – these tires protect you from a flat by providing an additional 50 miles at 50 mph to get to a gas station after your tire pops.
2. Navigation Systems – an in-dash navigation system is a great tool for finding your away around.  Use this to find local restaurants, navigate a new city, and in some cases, avoid traffic.
3. Premium Surround Sound System – everyone can appreciate a great sound system.  How else can you listen to Michael Jackson’s Thriller at full blast?
4. Back-up Assist – SUVs are especially avid at including these.  Back-up assist acts as a rear-view camera that boosts your visibility when backing up.  Great for avoiding objects like bicycles and other vehicles.
5. Heated/Cooled Seats – These seats have small “pinholes” that emit cool (or hot) air to flow from a fan or air condition unit embedded in the seats.
6. Keyless Entry System – Keyless entry is easy because the small keyless sensor stays in your pocket or purse, allowing you to start your car remotely.  By being in close proximity you can unlock dorrs and push a button on the dash to start your engine. 

These are just a few of the tech that people need to have, for the full list visit http://www.latimes.com/classified/automotive/highway1/la-hy-tech.pg,0,5168532.photogallery

Radio Frequency Identification tags are used for more than just tracking auto assembly

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RFID stands for Radio Frequency Identification Tags.  You've probably seen them many times and in different places and never realized they are used in so many different ways.  RFI's can do a variety of things like track your credit card as well as find your lost pet.  We thought it would be good to share some other interesting  applications known for these devices. 

Here are some interesting places that these cool little Radio Frequency Identification Tags are being used today.  Other than using them on your vehicle, these little devices are being used everywhere and provide a ton of data to places such as the manufacturer as well as social media platforms.

When your vehicle is being assembled, the manufacturer may have placed an RFI tag to track it’s progress while it’s going down the assembly line.  Here are a few other places that these tracking devices are used. 

Pets get chipped so if they get lost they can be tracked and found.   

They are starting to use this on luggage so that this can be found if lost.

Facebook uses RFI Tags at most of their live events so the crowd can easily upload photos and make the event more popular.

Micro SD cards are used in mobile phones and can be traceable as well as reveal tons of data.  If you have a smart phone such as an Apple IPhone

Have you been shopping and found one of these tags on your clothing or other products?             

Now manufacturers like Budweiser have just came out with the Buddy Mug that has an RFI Tag that allows the data of the beverage drinker to instantly connect with another Buddy on FaceBook. 

While some people may argue about privacy these little devices are going to be around for a long time to come. 

To learn more information feel free to contact us at FX Caprara Volkswagen 866-578-8233

7 Facts About Texting That Can Save a Life

Multitasking has increased in the last few years to astronomical heights.  With one hand and a smartphone you can watch a YouTube video, send an email, play a game, voice chat and place a call in a five-minute span.  However, with much power comes much responsibility because NOW that we have this access 24-7, it has carried over into our driving habits. 

For some time, researchers have been telling us to focus only on driving, quoting a greatly increased chance of accident, injury and death when we distractedly call a friend or answer a ringing cell phone.

Now, new research has revealed the most dangerous driver distraction of all: texting.

A study by the Virginia Tech Transportation Institute, along with prior studies by Liberty Mutual Insurance and state-funded organizations located online, reveals the shocking statistics of texting behind the wheel:

• ·      Texting while driving increases the risk of accident 23.2 times over unimpaired driving.
• ·      Texting while driving results in longer response times than even drunken driving. While an unimpaired driver can respond quickly to changes in traffic and begin braking within half a second, a legally drunk driver needs four additional feet to begin braking—and a driver who’s texting needs 70.
• ·      In the moments before a crash or near crash, drivers typically spend nearly five seconds looking at their mobile devices—enough time at typical highway speeds to cover more area than the length of a football field.
• ·      Though 95 percent of drivers surveyed said texting behind the wheel was unacceptable and unsafe, at least 21 percent admit to doing it anyway.
• ·      Especially amongst teens, texting results in erratic driving behavior, like lane weaving and speeding up and down, increasing the likelihood of hurting pedestrians and running into other vehicles.
• ·      Texting behind the wheel is generational: 37 percent of drivers 18 to 27 admit to texting while driving, compared to 14 percent of 28 to 44 year olds, and 2 percent of 45 to 60 year olds.
• ·      An accident can happen in two to three seconds while texting.

Drive Safely!