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.
Whole-of-market — 60+ lenders searched, including
Can you finance car refinance and sale and leaseback?
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.
Used kit: Yes — the car is already yours and already used — condition and mileage set what it releases
Get a quoteor call 0333 772 4864
What would car refinance and sale and leaseback cost per month?
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
How lenders treat 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.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| 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 |
Get a quoteor call 0333 772 4864
Who buys one
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.
Get a quoteor call 0333 772 4864
We publish the deals we arrange, with no client named and no rate quoted. See what we have funded in business car finance.
How it is treated for tax
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 CO2 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.
Car refinance and sale and leaseback questions
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.
Get a quoteor call 0333 772 4864
Also in business car finance
- Company car finance
- Director car finance
- Electric company car finance
- Hybrid company car finance
- Prestige car finance
- Classic car finance
- Sports car finance
- 4x4 finance
- Business fleet finance
- Pool car finance
- Sole trader car finance
- Used car business finance
See everything we fund in business car finance →
Not an offer of finance. All finance is subject to status, affordability and lender approval.
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.