FAQs

Many businesses have a general idea of the type of vehicle they need when they start looking for commercial vehicles, but there may be scenarios where either a cargo van or light-duty pickup will work for you. In those scenarios you should consider:

• Cubic capacity size needs
• Whether you need the security and weather protection of covered cargo space
• Fuel efficiency 
• Towing capacity
• Budget 
• Customization needs 

Certain types of home service providers generally need cargo vans for the security and weather protection they offer. Their cubic footage and height also makes it easier to install racks or storage compartments for holding a variety of tools and replacement parts. 

Construction businesses or contractors might be better served by open pickup beds, which can also be customized with tool benches and storage solutions, many of which can lock for added security. 

If there’s not an obvious right answer, you should consider making a pro-cons list or talk to management and other decision makers in your business before deciding. You may also benefit from looking at available pre-owned stocks of both cargo vans and trucks and finding one with a good reputation and a great price for its mileage and condition. 

It depends on your business and local state laws. 

There are several tax incentives available for businesses that use fuel-efficient, electric or hybrid fleet vehicles. Here are some examples:

1. Federal Tax Credits: The US federal government offers tax credits for the purchase of qualified electric vehicles (EVs), including electric cars, plug-in hybrids, and fuel cell vehicles. The credit amount varies based on the battery capacity of the EV and the manufacturer. The tax credit is claimed on the business's federal income tax return.
2. State and Local Tax Credits: Many states and local governments offer additional tax incentives for businesses that purchase or lease electric or hybrid vehicles. These incentives can include tax credits, rebates or reduced registration fees.
3. Depreciation Deductions: Businesses can deduct the cost of their electric and hybrid vehicles as a depreciation expense on their taxes. This allows the business to recover the cost of the vehicle over a period of time, reducing their tax liability.
4. Grants and Loans: Some states and local governments offer grants or low-interest loans to businesses that purchase or lease electric or hybrid vehicles. These grants and loans can help offset the cost of the vehicles and make them more affordable for businesses. You can find the incentives for Virginia here and Maryland here. 

It's important to note that tax incentives for electric and hybrid vehicles are subject to change and can vary based on the location and the specific vehicle being purchased. Businesses should consult with a tax professional or visit the Department of Energy's Alternative Fuels Data Center for the most up-to-date information on tax incentives for electric and hybrid vehicles.

Yes, there are fuel tax credits, grants, loans, and state tax credits available for businesses using renewable or electric vehicles in Virginia and Maryland. Here are some examples:

Virginia:

1. Clean Fuel Vehicle Grant Program: The Virginia Department of Mines, Minerals, and Energy offers a Clean Fuel Vehicle Grant Program that provides funding to businesses for the purchase or conversion of new vehicles to operate on alternative fuels, including electricity. The program is open to government, commercial and nonprofit entities.
2. Alternative Fuel Infrastructure Tax Credit: Virginia offers a tax credit to businesses that install alternative fuel infrastructure, such as electric vehicle charging stations. The credit is equal to 20 percent of the costs associated with the installation, up to $7,500.
3. Green Job Creation Tax Credit: Virginia offers a tax credit to businesses that create new jobs in the clean energy sector, including jobs related to the manufacture or assembly of electric vehicles or their components.

Maryland:

1. Electric Vehicle Supply Equipment Rebate Program: The Maryland Energy Administration offers a rebate program for businesses that purchase and install electric vehicle supply equipment, including charging stations. The rebate is available for up to 40 percent of the installed cost, up to a maximum of $4,000 per charging port.
2. Electric Vehicle Excise Tax Credit: Maryland offers a tax credit for businesses that purchase or lease electric vehicles. The credit is equal to 100 percent of the excise tax on the vehicle, up to $3,000.
3. Clean Fuels Incentive Program: The Maryland Energy Administration offers grants to businesses for the purchase or conversion of vehicles to operate on alternative fuels, including electricity. The program is open to government, commercial and nonprofit entities.

It's important to note these programs are subject to change and may have specific eligibility requirements. Businesses should consult with a tax professional or visit the relevant state agency's website for the most up-to-date information on available incentives.

The cheapest vehicle won’t necessarily be the right one for your business. It’s vital to consider all the factors that can influence the useful life of the vehicle and the overall costs associated with owning and operating it. Those include fuel, maintenance, repairs, insurance and depreciation.

Newer vehicles or low-mileage vehicles may still be covered by certain types of warranties. They can be a valuable addition to your work vehicle purchase.  

We pride ourselves on offering flexible financing options to every customer, including commercial clients, contractors or any business in need of fleet vehicles. We understand you might not always have the liquid capital to purchase fleet vehicles outright, which is why we’re happy to provide competitive financing options. Our financing team works with a variety of lenders to ensure we can offer competitive options to car shoppers, including businesses purchasing light trucks, cargo vans and other commercial vehicles. 

Safety features are important to every driver, but especially businesses. Business owners and contractors may want to pay special attention to accident avoidance safety features. Airbags are great, but they are ideal for protecting passengers within the vehicle. Businesses have additional liability concerns, and it can be especially costly for you if one of your drivers gets into an accident. Lane assistant, emergency braking and other features that make accidents less likely can be valuable.

From delivery drivers contracting with Amazon to landscaping companies operating a half dozen trucks plus loads of landscaping equipment, businesses are acutely aware of the price of gas and how it impacts their bottom line. Every business’s needs are unique, but it’s often a good idea to carefully analyze your towing and payload capacity needs and choose a vehicle that just meets them. Buying oversized trucks or vans may result in you paying more than you need to for fuel.

Payload capacity is the measure of how much weight the vehicle can carry. It’s an obviously important metric for all types of industries, including construction, landscaping, home service providers and delivery services. It’s worth your time to consider current and future business needs and standard operational needs. There’s a direct correlation between price and payload/towing capacity, so it’s worth your time to honestly assess your needs prior to purchasing.

Trucks and vans tend to last longer (and hold their value longer) than traditional commuter vehicles. This slightly changes the calculation when shopping for a pre-owned vehicle. For example, if you’re shopping for a used car for personal use, you might look for one with only 30,000 to 40,000 miles. When you’re shopping for a commercial vehicle, you might pay more attention to the trucks or cargo vans with 80,000 miles or even more. In many cases those commercial vehicles still have 100,000 miles or more left but are drastically discounted from the new price. Because businesses tend to put a lot of miles on those vehicles quickly, high mileage does not necessarily mean old.

One of the benefits of sticking to the most popular commercial truck and van brands is you can trust local service professionals will have more than enough parts on hand. More uncommon brands might not have the same type of parts availability. The year of the vehicle may also impact the availability of parts, but it’s safe to assume the most popular brands will have parts available.

Work vehicles often maintain their value better than traditional commuter vehicles, and they often manage to get more lifetime miles. Businesses often have an incentive to keep their vehicles well maintained, which is another factor that can impact resale value. 

Just because commercial vehicles tend to maintain valuation better than traditional commuter vehicles doesn’t mean buying used isn’t a great deal. Work vehicles definitely depreciate, so you can reliable get massive discounts by buying your fleet vehicles used. Because fleet vehicles are well maintained, they tend to have a lot of usable life left, even though they may already have 80,000 miles, 100,000 miles or more by the time you buy them.