Car refinance and sale and leaseback
Releasing cash from cars the business already owns outright, by selling them to a funder and hiring them straight back.
- FCA regulatedAppointed Representative, FRN 1031964
- 60+ lendersWhole-of-market panel, not one bank
- 5.0 from 19 Google reviews
- No credit checkEnquiring leaves no mark on your file
Yes, provided the vehicles are owned outright with no finance outstanding. In a sale and leaseback the funder buys the car from your business at an agreed value, pays the money into the company, and you continue using the vehicle under a hire purchase or lease agreement. Nothing changes day to day. The point that catches people out is valuation: the funder lends against trade value, not what you paid or what you would like it to be worth, and on a car that has depreciated hard the released sum can be well below expectations. It also has accounting and tax consequences on disposal, so involve your accountant before you commit.
Who finances this
Businesses that bought cars outright in a strong year and now want the cash back in the business, funding a VAT bill, a stock purchase, a hire or a premises move. Also companies whose capital is tied up across several vehicles at once. The trigger is usually a cash flow squeeze that has nothing to do with the cars, or an opportunity that needs funding faster than a bank facility can be arranged.
How lenders see it
Refinance underwriting runs in two halves. First the asset: the funder establishes trade value from recognised guides, checks the V5 is in the company name, confirms no outstanding finance and often inspects or requests photographs and service records. Newer, mainstream, low-mileage cars release the most because they have a predictable forward value; older or niche vehicles release much less. Then the company: they want to understand why cash is needed, because refinance used to plug a structural hole is a very different proposition from refinance funding growth, and they will read the accounts and bank conduct accordingly. Cars are depreciating assets, which is why classic and collector vehicles are handled by different funders entirely and often support more. Declines come from vehicles not owned outright, V5s in a director’s personal name rather than the company’s, and businesses with arrears where the refinance is plainly a last resort.
Buying used
Yes, the car is already yours and already used, condition and mileage set what it releases
What would car refinance and sale and leaseback cost per month?
Cars are treated differently from commercial vehicles. A van generally qualifies for the annual investment allowance ; a car generally does not, and instead attracts writing-down allowances tied to its CO 2 emissions, with fully electric cars in the most favourable position. A car made available for private use also creates a benefit in kind for the driver. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Also in business car finance
See everything we fund in business car finance →
Machines we have funded
| BMW 5 Series Saloon | Recent company car with equity in it |
|---|---|
| Mercedes-Benz E-Class Saloon | Executive saloon suitable for leaseback |
| Range Rover Sport | Premium SUV with strong resale value |
| Tesla Model 3 | Electric saloon owned outright by the company |
| Audi Q5 | Premium SUV held on the balance sheet |
| Volkswagen Passat Estate | Fleet estate suitable for a multi-car deal |
| Porsche 911 Carrera | Collector sports car with strong values |
| Jaguar E-Type Series 1 | Classic car held as a company asset |
| Volvo XC90 | Seven-seat premium SUV owned free of finance |
| Skoda Octavia Estate | Fleet car common in leaseback packages |
Can I release cash from a car my company already owns?
Yes, if it is owned outright with no finance against it. The funder buys it at an agreed value and you hire it back, keeping the vehicle and its use exactly as before. You will need the V5 in the company name, proof of purchase and evidence that nothing is outstanding on it.
How much can I release from a company car?
It is based on trade value, not on what you paid, so we cannot give a figure without knowing the exact vehicle, age and mileage. Newer mainstream cars with low mileage release the most. The honest position is that owners are often surprised how far a car has fallen, so get the valuation before you plan around the money.
Can I refinance a car that still has finance on it?
Not as a straight sale and leaseback, because you do not own it. What can sometimes be done is settling the existing agreement and rewriting the facility, which only helps if the car is worth more than the settlement figure. Get the settlement quote from your current funder first and we will tell you quickly whether it works.
Does sale and leaseback affect my accounts?
Yes. You are disposing of an asset and taking on a new agreement, which has balance sheet and potentially tax consequences including balancing charges on the disposal. This is genuinely an accountant question and we would rather you asked before signing than after. We will provide whatever documentation they need.
Can I refinance several cars at once?
Yes, and it is often more efficient than doing them one by one. The funder values each vehicle and they sit as separate schedules under a single facility, giving one payment profile. A small fleet of reasonably recent mainstream cars is a straightforward case for funders who do vehicle refinance regularly.
Tell us what you need
About a minute of plain questions, and no documents to dig out.
Prime is established and profitable with clean credit. Specialist covers newer businesses and credit that needs explaining, the asset carries part of the risk, so finance is often available where an unsecured loan is not.
Illustrative only, not a quote, a flat rate is not an APR, so the APR on a given agreement will be higher. VAT and fees excluded.
Start my enquiryNo credit check, and enquiring leaves no mark on your credit file. Finance is subject to status. We are a credit broker, not a lender.
Only pricing it up?
An enquiry is a conversation, not an application. Nothing runs against your file until you tell us to go ahead.
No credit check to enquire
Your credit scoreUntouched
Conor reads every enquiry himself. We will call you within 24 business hours, and it will be the person who actually arranges the finance, not a call centre, and not a form that disappears.
A real person on your side
One adviser from your first enquiry to the money in your account. No call centres.
Your adviser
Conor HullMon to Fri, 9am–6pm
5.0 from 19 Google reviews
Thinking about car refinance and sale and leaseback?
A few questions, and we will tell you what the panel can do. No obligation, and no call centres.
