Should I buy a vehicle under business LLC?

[T Giddens]

I'm a fairly new investor, completed my first BRRR a year ago. My real estate business is under a LLC. I recently accepted a $10,000 business credit card with BOA and they are now offering a business loan for a vehicle (2.49% interest vehicle under $50k) I'm not in the market for purchasing a new car. I have under 2 years left on my car note which is under my personal credit file.
I am however considering the offer because the loan would not be connected to my personal credit file. I’m shopping for another BRRR property so to have one less account on my credit would help.
My concerns: are business vehicles more expensive to insure? Are there Tax liabilities or incentives? Is it too soon or even worth it?

[Nathan H.]

@T Giddens 

The major tax benefit as mentioned is 100% bonus depreciation. For this to matter in the current year, you have to have income to absorb it. Also remember when you sell the truck you will have to “recapture” that depreciation (pay taxes on the proceeds minus the basis which will be Zero if you take full bonus depreciation). 

As an MLO, I can tell you there is nothing that disqualifies someone for a conforming loan more than a truck payment. The single most thing that separates home owners from non-homeowners is if they bought a car they couldn’t really afford before buying a house. Proceed with caution and know how lenders will see this. If you’re using income for your business to qualify for loans, this will hurt your borrowing power in some way. Fannie and Freddie underwriters often have a hard time understanding bonus depreciation and may see your income as weak if offset a bunch of income by in essence expensing the truck.