There couldn't be a better time to buy light-duty commercial
vehicles-pickup trucks, vans and sport utility trucks-than between
now and December 31, 2004. A temporary tax-cut package signed
ear-lier this year gives small businesses a break and provides
federal write-offs, including a bonus depreciation and a new
expensing rule, to companies that buy business equipment, including
vehicles. Also, Uncle Sam is giving a tax break of as much as
$100,000 to small businesses that buy SUVs and pickups weighing
more than 6,000 pounds. Plus, a flurry of incentives and rebates
being offered by virtually every auto manufacturer and price wars
spearheaded by GM, mean it's a buyer's market.
The leading 2004 commercial vehicle trends are pickups and vans
that combine brains and brawn with greater power and performance,
more comfort and conveniences, and more varied configurations and
price ranges. In pickups, new names include Chevrolet's midsize
Colorado/GMC Canyon. There are also two additions to Chevy's
Silverado line-a half-ton crew cab and a hybrid
gas/electric-powered model. Nissan introduces its first full-size
pickups, the 350 Z Titan crew cab and king cab; and Toyota adds a
double-cab Tundra pickup. Some familiar models are improved as
well: Toyota's Tacoma has a fresh look, some Dodge Ram pickups
sport a new HEMI engine, and Ford has completely redesigned its
F-150 and is offering a Super Duty optional diesel engine
Harley-Davidson model.
In vans, Dodge's Sprinter is making its U.S. debut this
year. Ford's new top-of-the-line Freestar is the most flexible,
powerful and quietest minivan the company has brought to market,
with dozens of storage features and rear sliding doors. To its
Express and GMC Savana cargo/passenger series, Chevrolet has added
a new work van with large cargo areas and long load floors.
Honda's Latitude, a smaller version of the Odyssey, is new this
year as well. And Nissan has built a midsize Quest minivan.
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If you can't decide what type of vehicle best suits your
needs, consider a sports utility truck (SUT). These vehicles
combine elements of an SUV and a truck, usually featuring a portion
of the body that functions like a pickup bed. Among the offerings
are Buick's Rainier, Cadillac's full-size Escalade EXT,
Ford's Explorer Sport Trac, and GMC's Envoy XUV. One
unusual SUT is a delivery/commercial/cutaway truck, sold by Chevy
as the Kodiak and by GMC as the TopKick, which seats six and has an
option that tilts the cab forward for easy maintenance. A variation
on the SUT concept, Chrysler's Pacifica sports tourer is a
combination SUV/van.
Which to choose? It's a daunting task requiring serious
research. Fortunately, manufacturer and automotive Web sites are
loaded with information, color graphics, optional features and
comparison prices to help you figure out which fleet and commercial
vehicles are best for you. GM dealerships even offer a free 24-hour
overnight test drive. Call (800) 508-1050, or visit www.gm.com/24hours
for details.
When buying or leasing a fleet of vehicles, factor in size,
function, capacities, mileage, life cycle cost analyses, insurance
and maintenance, warranty coverage, and driver feedback. Keep in
mind that light-duty trucks depreciate less than cars. To find the
right vehicle for your business, ask yourself:
- How much cargo space is needed to make deliveries
efficient?
- How heavy are the products your business delivers?
- How many people need to ride up front in your pickup?
- Are deliveries mostly stop-and-go or long hauls? Figure out
fuel economy for both situations.
- How big is your budget?
Jill Amadio is Entrepreneur's "Wheels"
columnist.