If your business requires a vehicle but you’re short on cash, you will need to obtain a commercial auto loan. Commercial auto loans are used by businesses to buy vehicles needed for work-related operations. That includes such tasks as getting products to customers, completing jobs, and transporting employees, among others. These loans are available for new and old vehicles as well as for refinancing existing loans. Technically, you could buy a personal-use vehicle with a commercial car loan, but that would be difficult to secure and would be a red flag for Internal Revenue Service auditors.
Because vehicles are considered depreciating assets and they are expensive to buy, many businesses choose to lease instead. But purchasing could be a good option if your company needs the vehicle long term and wants to write off the depreciation on its tax returns.