How to Get a Cheap Work Car

My husband runs his own painting business. He is driving an old heap that is on its last legs and needs a new business vehicle. Our accountant has suggested a ‘chattel mortgage’, which sounds like a good deal at 6 percent interest for $20,000 over five years. We have a lot of debt to pay off and want the most cost-effective option.

Lorraine

The most cost-effective option is to pay cash for a second-hand van. However, if you don’t have the coin, and can’t buy it out of savings, your accountant is giving you decent advice. Remember that, as long as the price of the van is under $20,000, you’ll also be able to claim the Government’s accelerated depreciation allowance, which will potentially reduce your tax by $6,000.

Scott