Standard passenger cars have lower caps. For 2026, the first-year limit is approximately $12,200 , plus an additional $8,000 if you apply bonus depreciation, for a total of $20,200 .
The right choice depends on your cash flow needs and how long you plan to keep the vehicle. how to buy a car for a business
Mileage restrictions and you don't own the asset at the end . 3. Financing the Purchase Standard passenger cars have lower caps
In 2026, the Section 179 deduction allows businesses to immediately expense the cost of qualifying vehicles rather than depreciating them over several years. Mileage restrictions and you don't own the asset at the end
Full ownership, builds equity, no mileage limits, and unlocks the largest Section 179 deductions . Cons: Higher upfront costs and monthly payments . Leasing:
Lower monthly payments, easier to upgrade to newer tech every 2–3 years, and simpler tax deduction of monthly lease payments as a business expense .
To qualify for any Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time .