Funding a hybrid or plug-in hybrid through the business, usually chosen as the middle ground when a full EV will not cover the mileage.
Whole-of-market — 60+ lenders searched, including
Yes. Hybrids and plug-in hybrids are funded through a business on the same products as any other company car — hire purchase, finance lease or contract hire. On tax, cars get writing-down allowances tied to CO2 emissions rather than the annual investment allowance a van would get, so a low-emission plug-in hybrid sits better than a petrol equivalent but not as well as a fully electric car. Benefit in kind follows the same pattern. The thing that catches people out is that a plug-in hybrid only delivers its claimed running costs if it is actually charged; drivers who never plug in end up with a heavy car, worse real-world economy and a tax position they did not expect to justify.
Used kit: Yes, but expect questions on battery condition and service history on older plug-ins
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Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 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. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
Funders treat self-charging hybrids as ordinary petrol cars for risk purposes and plug-in hybrids as their own category. The company underwriting is standard. On the asset, PHEV residuals are the live question: used demand is softer than it was, buyers are wary of battery condition on older plug-ins, and funders have trimmed their forecast future values accordingly. That shows up as a more conservative structure rather than a decline. High-mileage use is also scrutinised, because a company car doing very heavy annual mileage returns in a condition the trade discounts. A car bought through a limited company is judged on the company covenant first; the same vehicle for a sole trader is judged much more on the individual, which is why the same car can be structured two different ways.
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 330e Saloon | Plug-in hybrid compact executive saloon |
| Mercedes-Benz C 300 e | Plug-in hybrid saloon with long electric range |
| Volvo XC60 Recharge | Plug-in hybrid premium SUV |
| Toyota RAV4 Plug-in | Plug-in hybrid SUV for mixed mileage |
| Toyota Corolla Touring Sports | Self-charging hybrid estate |
| Skoda Superb iV Estate | Plug-in hybrid estate with big boot |
| Kia Niro Hybrid | Self-charging hybrid crossover |
| Lexus NX 450h+ | Plug-in hybrid premium SUV |
| Volkswagen Passat eHybrid | Plug-in hybrid estate for reps |
| Audi A6 TDI mild hybrid | Mild hybrid diesel for long motorway runs |
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Businesses with high-mileage drivers — regional sales, multi-site managers, field service — who cannot make a full EV work on charging time but want to move off straight diesel. Often the second step for a company that already put one EV on the fleet and found the range did not suit every role. Also common where towing capability or long motorway runs rule out an electric car entirely.
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We publish the deals we arrange, with no client named and no rate quoted. See what we have funded in business car finance.
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.
It depends entirely on whether the driver charges it. A plug-in hybrid that gets plugged in most nights gives lower emissions, lower benefit in kind than petrol and sensible running costs. One that never gets plugged in is carrying a battery for nothing. Ask your accountant to compare the actual tax position against a full EV before ordering.
No. Both do better than petrol or diesel, but a fully electric car sits in the most favourable position for both capital allowances and benefit in kind, and a plug-in hybrid sits somewhere in between depending on its emissions. We deliberately do not publish percentages because they change; your accountant can give you the current figures for the exact model.
Yes. Funders will look at age, mileage and battery condition, and some apply tighter limits on older plug-ins than on equivalent petrol cars because used demand has softened. A full service history and evidence the battery has been maintained makes the case materially easier to place.
On pure motorway mileage a modern diesel still often wins on fuel, but the tax treatment on a company car increasingly favours lower emissions. Most businesses we deal with end up choosing on total cost including benefit in kind rather than fuel alone. Get your accountant to run both before you order.
Yes. Any car made available for private use creates a reportable benefit, hybrid or not. The amount scales with emissions, so a low-emission plug-in hybrid creates a smaller benefit than a petrol equivalent and a larger one than a fully electric car. Your accountant or payroll provider handles the reporting.
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See everything we fund in business car finance →
Not an offer of finance. All finance is subject to status, affordability and lender approval.
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.