Have you been thinking about investing in a truck or delivery vehicle for your business? If you have been, then now is a great time to add that vehicle to your fleet thanks to the Section 179 deduction. Understanding the tax code can get confusing, but don’t worry. We’ve got you covered! Keep reading to learn more.
What is the Section 179 Deduction?
You may have heard of the Section 179 deduction before. If you haven’t, buckle up because you’re going to want to hear this. The Section 179 deduction allows businesses to write off up to $1,080,000 on any new or used truck, trailer, or delivery vehicle that is purchased, financed, or leased and put into service before the end of the calendar year. This means that you have until December 31, 2022, to take advantage of this deduction. For more information and to find the answers to your tax code questions, visit Section179.org.
New or Used
Now that you know the basics of the deduction, it’s time to decide if you want a new or used vehicle. There are pros and cons for both. With new vehicles, you know the truck’s entire history and you can relax knowing that you’ll have less maintenance costs up front and in most cases an extended factory warranty. The con, of course, is that new vehicles have a higher price tag than used, but they also typically get more miles per gallon. Used vehicles, on the other hand, are a great option if you don’t want to spend as much and don’t mind the potential maintenance costs. Also, just because a truck is used does not mean that it is “old.” Trucks can be traded in or sold for a variety of reasons. Our team works to make sure that every used truck on our lot is in excellent shape.
Diesel or Electric
Diesel prices have been all over the place this year, which may make you think twice about going with a diesel powered vehicle. However, electric vehicles have their cons too. As of now, electric vehicles can only travel so far before they need to be charged. Charing takes much longer than driving up to the gas pump and filling up your tank. If you don’t have time to wait, then an electric vehicle may not be the way to go right now. Also, electric vehicles are more expensive than their diesel-powered alternative. One other thing you have to consider is that with an electric vehicle, you can say goodbye to oil changes, but you will still have some maintenance needs.
How We Can Help
Our experts at Lee-Smith can help you answer these questions and others like if you need a day cab or a sleeper or if you need a refrigerated truck. Give us a call at 423-622-4161. You can also explore our current inventory by visiting our website or downloading our app. It’s available for both Apple and Android devices.