Hi there,
I have an ABN as a sole trader and need to purchase a new bigger car to help with my work as I am often transporting lots of equipment.
The car will be used both privately and for my business.
Can I purchase this car with my ABN and out of savings or can I only purchase a car with an ABN through finance?
You can purchase a car either through savings or finance.
I recommend Chattel Mortgage for car finance so you can claim the GST up front (If GST registered).
As a sole trader, you personally and your business are "one", so any purchase through your personal savings can be claimed for business if used for business.
Also for some personal information, there is a difference between a car and other vehicle. 'Other vehicles' are designed to carry either 1 tonne or more, or 9 passengers or more. Look at the below link for more.
You can purchase a car either through savings or finance.
I recommend Chattel Mortgage for car finance so you can claim the GST up front (If GST registered).
As a sole trader, you personally and your business are "one", so any purchase through your personal savings can be claimed for business if used for business.
Also for some personal information, there is a difference between a car and other vehicle. 'Other vehicles' are designed to carry either 1 tonne or more, or 9 passengers or more. Look at the below link for more.
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