Company car finance
Funding a car in the company name rather than your own, with the facility written against the business and the vehicle used for work.
Whole-of-market — 60+ lenders searched, including
Can you finance a company car?
Yes. A company car is funded in the business name using hire purchase, finance lease or contract hire, with the limited company as the hirer and the vehicle allocated to a director or employee. The lender underwrites the company — filed accounts, bank conduct and any existing agreements — and will usually ask a director to support it personally. The point that catches people out is tax: a car is not treated like a van. Vans generally attract the annual investment allowance, cars generally do not and instead get writing-down allowances tied to CO2 emissions, and the driver picks up a benefit in kind. Confirm the position with your accountant before you order.
Used kit: Yes, and most company car deals we place are used rather than new
Get a quoteor call 0333 772 4864
What would a company car 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
A funder looks at a company car very differently from a personal one. The obligation sits with the business, so they read the accounts, the age of the company and the conduct of existing facilities before they look at the car at all. Then they look at the asset: cars depreciate on a well-mapped curve, so residual value is the second question — mainstream marques with strong used demand get the easiest treatment, niche trim levels and unusual colours less so. Young companies, or ones with no comparable finance history, will normally need a director’s guarantee. What gets declined is a car that plainly has no business use, a company with unexplained arrears, and any structure where the vehicle is registered to an individual while the finance sits in a company name.
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 3 Series Saloon | Compact executive saloon for managers |
| Audi A6 Saloon | Executive saloon for senior staff |
| Mercedes-Benz C-Class Estate | Practical premium estate for sales roles |
| Volvo XC60 | Premium SUV with strong safety spec |
| Skoda Superb Estate | Value company car with huge boot |
| Tesla Model 3 | Electric saloon with low benefit in kind |
| Volkswagen Passat Estate | Efficient estate for high mileage drivers |
| Kia Sportage | Well-equipped SUV with long warranty |
| Polestar 2 | Electric fastback for user-chooser lists |
| Hyundai Tucson | Hybrid SUV for mixed business mileage |
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Who buys one
Owner-managed limited companies replacing a director’s car, or adding one for a new sales hire, field engineer or practice manager. The trigger is usually a lease ending, a personal car that has quietly become the work car, or an accountant pointing out that the mileage claim no longer covers the running cost. Typically a small number of vehicles, ordered through a main dealer or a broker supply deal, needed for a specific delivery date.
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.
Company car finance questions
Can my limited company buy a car on finance?
Yes. The agreement is written in the company name with the company as hirer, and the vehicle is used for business. Most lenders will ask a director to guarantee it, particularly where the company is young or has limited finance history. The car being in the company name is what makes the tax treatment and the benefit-in-kind position apply.
Is it better to buy a car personally or through the company?
It depends on the car, the mileage and your wider tax position, which is an accountant’s call rather than ours. What we can tell you is how each route is funded: personally you would be looking at consumer products, through the company you get business hire purchase, finance lease or contract hire, and the company route is what allows the business to hold the asset.
Do I need full accounts to get a company car on finance?
Not always. Established companies are usually assessed on filed accounts and bank conduct. Newer companies can still be funded, generally with a director’s guarantee and sometimes a larger contribution up front. If accounts are thin, management figures and a clear explanation of why the car is needed will do more good than anything else.
Can the company own the car at the end?
On hire purchase, yes — title passes to the company once the agreement completes. On contract hire it does not; the car goes back at the end and you hand it over against agreed mileage and condition standards. Finance lease sits in between. Choosing between them is mostly about whether you want the residual value risk or not.
Can I put a car through the business if I am the only employee?
Yes, a single-director company can hold a company car. The lender will underwrite the company and almost certainly want your personal guarantee. Be aware that with one director and one car, HMRC will expect the benefit-in-kind position to be handled properly, so speak to your accountant before the order goes in.
Get a quoteor call 0333 772 4864
Also in business 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
- Car refinance and sale and leaseback
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.