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.
- FCA regulatedAppointed Representative, FRN 1031964
- 60+ lendersWhole-of-market panel, not one bank
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- No credit checkEnquiring leaves no mark on your file
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.
Who finances this
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.
How lenders see 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.
Buying used
Yes, and most company car deals we place are used rather than new
What would a company car 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
Typically £20,216–£49,755 to buy. New Volkswagen range at UK on-the-road RRP, Polo up to ID.7 Tourer, covering typical mainstream company car choices.Checked 2026-10-18.
| 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 |
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.
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.
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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.
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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 company car finance?
A few questions, and we will tell you what the panel can do. No obligation, and no call centres.
