Loan Question - Need to add business to title

[dejavo0]

I got approved for a loan from BofA as an individual, but they needed the title to match exactly what was on the loan application. However, I wanted to add my business to the title and they said that they couldn't do it and that I would need to apply for a business loan instead of a consumer loan.

On Tesla's website, it states that I need to qualify as an individual first and then they would add the business to the title later, has anyone had any experience with doing this? I just want to be absolutely sure this can be done so that I can take advantage of the business deductions.

Thanks

 

[Luder94]

That's what I was told as well. I ended up going with Alliant Credit Union and got the 1.49% with close to 100% loan. Unfortunately, I wasn't able to add my business name to that loan, which also has to match the title.

I figure, I'll still expense the monthlies of operating and depreciating the car against my business. When I get ready to pay the car loan off, I'll process the title and registration adding the business name to the car so that the state reprints the title the way I want it. As of now, it'll have my wife's name, my name, and Alliant as the lien holder.

If the accountant works the magic, the way the loan goes, I personally will be able to take the federal and state tax credits, and when I pay off the loan, the business will buy the car from me not including the tax credit.

 

[bhuwan]

alliant refused to title under business

 

[AmpedRealtor]

I don't know of any lenders who will extend regular financing on a vehicle while also allowing you to title the vehicle and put the car loan in the name of a business. This represents a collection issue for the lender in the event of default, and in many cases there is no way to check the credit worthiness of a business. If you are a sole proprietor, you are able to fully depreciate the vehicle as a business asset in addition to claiming mileage deductions if the car is in your personal name but you drive it 100% for business use. The same may hold true of S-corps, since everything eventually flows to your personal returns, but not sure. LLCs and C-corps may be different. I'm not an accountant, so please check with a professional before making a decision.

 

[dejavo0]

I don't know of any lenders who will extend regular financing on a vehicle while also allowing you to title the vehicle and put the car loan in the name of a business. This represents a collection issue for the lender in the event of default, and in many cases there is no way to check the credit worthiness of a business. If you are a sole proprietor, you are able to fully depreciate the vehicle as a business asset in addition to claiming mileage deductions if the car is in your personal name but you drive it 100% for business use. The same may hold true of S-corps, since everything eventually flows to your personal returns, but not sure. LLCs and C-corps may be different. I'm not an accountant, so please check with a professional before making a decision.

Yeah thats why I'm curious as to how Tesla can pull it off

On the TM website it states:

Can I use Tesla Financing for a business purchase?

Yes. However, you must qualify as an individual and Tesla will add your business to the loan after you are approved. The vehicle registration must list both your name and the business.

 

[AmpedRealtor]

Yeah thats why I'm curious as to how Tesla can pull it off

On the TM website it states:

Can I use Tesla Financing for a business purchase?

Yes. However, you must qualify as an individual and Tesla will add your business to the loan after you are approved. The vehicle registration must list both your name and the business.

I would guess that Tesla has arranged for its financing partners - Wells Fargo and US Bank - to accept a business name on the loan as long as you personally also appear on the loan for recovery purposes. In most, if not all, loans and contractual obligations where multiple parties are named, those parties are liable both jointly and severally. Tesla probably also did it this way to make a business use case for Model S and helping drive down the "true cost of ownership" or whatever they call their funky payment calculator.