I did a thing!
I purchased a car in my LLC’s name. Yep, I sure did. Isn’t she lovely? Her name is Serena (as in Serena Williams, the G.O.A.T.) She is a Volvo XC90 T6 Inscription. I know what you are thinking. A Volvo Quisha, really? I know..I know… I said the same thing but if you go test drive one, you will probably fall in love too.
Oh, and don’t mind the Benz beside me, that’s Denzel, my hubby’s car. We brought them both home at the same time. Don’t you just love the names? #blackexcellence
So, here’s the back story behind the purchase of my car. I celebrated the 3rd anniversary of my DBA filing by buying a car in my busines name. And let me tell you, social media influencers will make you think that purchasing a vehicle in your business name is as easy as snapping your fingers.
I’m not saying it’s impossible, I’m just saying the process is more involved than how it is portrayed. There is definitely some measure of stress and patience needed so I thought I would share my journey with you.
Buying a car in your business name..
1. Establishing business credit can take up to two years so start early.
2. Make money! (Consistently)
When influencers are telling you how easy it is to purchase a car in your business’s name, they usually leave out the part about having to make enough money to justify the expense. But this step is equally as important as the first. Now, I’m no expert and I can’t tell you how much money you need to be making to justify the vehicle purchase. There are too many factors involved like the cost of the vehicle, the interest rate and other loan details. What I can say is at the time of the blog post, my business has grossed $180k over the past 9 months so that’s a consistent average of about $20k per month which was sufficient for a vehicle about 35k more than the one I purchased.
3. Shop around (for banks that offers commercial auto loans and for the lowest interest rates)
Depending on the dealership that you go to, you may not get the best interest rates offered to you. I purchased a certified pre-owned vehicle and interest rates on used cars tend to be higher, therefore I definitely had to shop around. I was NOT going to go with the rates that the dealer was offering, so I left with a copy of the Bill of Sales and approval and the real work started.
I had no idea that it was so hard to find a bank that offered commercial auto loans. I got approved at several banks for a privately owned vehicle loan but our banks (Chase, Wells Fargo, and USAA) as well the Credit Unions in my area don’t offer loans for commercial auto purchase. I thought it was a lost cause. In my research, I found it easier to find banks that offer commercial auto loans on fleets of vehicles or for the trucking industry easier than it was to find a bank that offered a commercial loan for a small business. But... that was before I called Bank of America (as a last resort). Now, BOA and I don’t have the best relationship (a story for another day) and I was seriously considering closing out that account but wouldn’t you know they actually offer a Business Advantage Auto Loan.
4. Apply and submit required documentation
Applying for the commercial auto loan with BOA was done easily online. I got approval almost instantly. Although the following steps took place over several days, I’m going to list them for brevity.
My overall thoughts about the experience…
In the meantime....if you see me rolling, be sure to wave and say HI!
Quisha Umemba is a Registered Nurse with a Public Health background. She is a qualified consultant, educator, speaker, trainer, facilitator, and coach with over 20 years in the healthcare/public health fields. With a passion for activating others, Quisha helps public health leaders, helping professionals, and emerging entrepreneurs monetize their skillset to level up their career or start a service-based business. Find out more by visiting https://quishaumemba.com/