Cars
Business car finance for UK companies
Reviewed by Luca Scalzo, Director, WFYA Limited · Last reviewed
Business car finance lets your company spread the cost of a car over a fixed term instead of paying the full price up front. The agreement is in the name of the business, usually a limited company, and is most often arranged as hire purchase (you own the car at the end) or a lease (you use the car and hand it back or sell it on).
We Finance Your Asset is a credit broker, not a lender. We look at what your business needs and introduce your application to lenders on our panel that finance company cars.
Who can apply for business car finance?
- Limited companies and LLPs buying a car for a director or an employee.
- Businesses replacing a company car or adding one as they grow.
- Firms that want to keep cash in the business rather than buy outright.
How does business car finance work?
- 01
Apply online
Tell us about your business and the car in our application form. It takes a few minutes.
- 02
We review and approach lenders
Our team checks the details with you and introduces your application to lenders on our panel that fit the car and your business.
- 03
Decision and payment
If a lender approves, you review and sign the agreement with the lender, and the lender pays the dealer or supplier.
Should a company car be on hire purchase or a lease?
With hire purchase the business pays a deposit and fixed monthly instalments, and owns the car after the last payment. Some agreements add a larger final "balloon" payment to lower the monthly cost. With a finance lease or contract hire the lender owns the car and your business pays to use it.
The tax treatment is different for each option and for each car, especially on VAT and capital allowances. Your accountant is the right person to confirm which works best for your company. Our page on buying a car through your limited company or personally explains the main differences.
What can business car finance cover?
- New and used cars bought from a franchised or independent dealer.
- Company cars for directors and staff, including electric and hybrid models.
- Executive and higher value cars: see luxury and prestige car finance.
- Several cars at once: see fleet finance.
We arrange finance from £10,000 up to £1 million, depending on your requirements and circumstances.
What documents do you need to apply for business car finance?
Our application form asks for the information lenders need first, so it helps to have it ready:
- Your company name and Companies House number.
- The director's contact details, date of birth and home address history.
- Details of the asset: what it is, its price, the supplier and, for vehicles, the registration and mileage if known.
- The deposit you plan to put in and the term you would like.
- Your last three months of business bank statements, which you can upload with the form.
Lenders may then ask for more, such as recent accounts, proof of identity or the supplier's invoice, depending on the amount and your business.
How long does business car finance take?
It depends on the asset, the lender and how quickly the documents arrive. The lender then makes its own decision; straightforward applications with complete documents move fastest, while larger amounts, used or specialist assets and newer businesses can take longer.
What deposit and term should you expect for business car finance?
Most agreements involve some upfront payment, and the amount depends on the lender, the asset and your business. Newer businesses, older or specialist assets and larger amounts may need a bigger deposit. Terms are usually set by the expected working life of the asset. We will tell you what the lenders on our panel ask for once we know your details. We do not quote interest rates on this website because the cost depends on your circumstances: see what affects the cost of asset finance.
Sources
Checked on 31 October 2026.
Frequently asked questions
Can a limited company get car finance?
Yes. A limited company can take out hire purchase or a lease in its own name. Lenders look at the company's trading history, accounts and credit profile, and often at the directors too. Some lenders ask a director for a personal guarantee, especially for younger companies.
Is it better to buy a car through my limited company or personally?
It depends on the car, how it is used and your personal tax position. A company car can create a benefit in kind charge for the director, while a personally owned car used for business can be reimbursed through mileage allowances. Read our comparison and check the numbers with your accountant.
Can I get business car finance for a new company?
It is possible, but newer companies have fewer lenders to choose from and may be asked for a larger deposit or a director's guarantee. See our guide to finance for new limited companies.
Can I finance a used car through my business?
Yes. Used cars can be financed on hire purchase or lease. Each lender sets its own limits on the age and mileage of the car at the end of the agreement.
Will applying affect my credit score?
We start with a soft search, which does not affect your credit score. If you decide to proceed, the lender will run its own checks, which may be recorded on the company's or the director's credit file.
Talk to us about your asset
Tell us what you want to finance. Our team reviews every application and comes back to you.
Start your application