By If you use a classic or antique car in your business, you may be able to deduct it just as you would a newer business vehicle.
The key requirement is business use. A vehicle must be subject to wear and tear, decline, or exhaustion, and you must use it in your trade or business. Courts have allowed depreciation deductions for valuable antique assets used in business, even when those assets appreciated in value.
This can make using a classic car for business an interesting alternative to using a new vehicle. For example, a 1972 Pontiac GTO used in business may qualify for depreciation just like a 2026 Lexus IS. Current law generally treats new and used vehicles the same for depreciation purposes.
However, passenger automobiles remain subject to the luxury-auto depreciation limits. For vehicles placed in service in 2026 and eligible for bonus depreciation, the first-year deduction is capped, so you generally cannot deduct the full purchase price in Year One.
The potential advantage of a classic car is economic. While repairs and operating costs may be higher, the vehicle may hold or increase its value far better than a new car.
If you want to discuss classic and antique cars, please call me directly at 408-778-9651