Business Car Finance in Yorkshire

Business car finance and how it differs

Funding a car through the business is a different conversation from funding one personally. The lender underwrites the company, the VAT and tax treatment change, and the agreement sits on the balance sheet rather than against your name. For directors and owner-managers that is usually the better route.

Company car finance and limited company car finance

Limited company car finance puts the agreement in the company’s name, often with a director’s guarantee behind it. Hire purchase means the company owns the car at the end and may claim capital allowances; contract hire keeps it off the balance sheet with a fixed monthly cost and no disposal risk. Which suits depends on mileage, how long you keep vehicles and your accountant’s view.

Business vehicle finance across a fleet

Business vehicle finance is not only about cars. Directors’ vehicles, pool cars, sales fleets and light commercials can be funded on one facility, which is simpler to administer than separate agreements running to different end dates.

Self-employed car finance

Self employed car finance is the request we are asked about most. Sole traders and contractors are the group most often declined by direct lenders, usually for want of two or three years of filed accounts rather than anything to do with affordability. Several lenders on our panel assess self-employed applicants properly, using bank statements and contracts where accounts are thin.

Hire purchase, PCP and lease

Hire purchase on a car spreads the full cost and you own it at the end. PCP lowers the monthly payment with a final balloon — pay it, hand the car back, or part-exchange. Lease and contract hire fund use rather than ownership. We will explain the trade-offs in plain terms rather than steering you to whichever pays us best.

Prestige, classic and electric

Prestige car finance and classic car finance need lenders who value the asset properly rather than applying standard depreciation — a classic that appreciates behaves nothing like a three-year-old hatchback. Electric and hybrid vehicles increasingly make sense through a company for tax reasons; worth a conversation with your accountant alongside us.