Business Car Finance

How to get business car finance?

There are a few criteria that you must fit to be able to get business car finance:

Just like with personal car finance, you’ll need to go through a credit check and will be required to produce proof.

Be registered as a company (limited, partnership), charity or self-employed.


What is a business car finance?

Business car finance is offered for companies and individuals, these mainly include limited firms, sole traders and partnerships. The contract length is around 12-60 months, with 36 being the average. This type of finance is also known as business leasing and has many benefits. However, there are also a few things to watch out for which we’ll discuss below. 

Types of Business Car Finance Deals

Out of the two types of business car finance, BCH (Business Contract Hire) is more common and cheaper.

Business Contract Hire (BCH)

This is a business car finance option without a possibility to own a vehicle. You’re essentially leasing a car and then have to return it at the end of the contract.

Business Contract Purchase (BCP)

Unlike BCH, you have an option to purchase a leased vehicle when your agreement is ending. You’ll need to pay a final balloon fee to own a car, it is possible to refinance it so that you’re paying monthly rather than outright. Additionally, you can hand the car back and refinance another one.

Business Car Finance Benefits

No depreciation


Because you’re leasing a car, depreciation won’t affect you since the car will be handed back to the dealership (if taking out a business contract hire).

Can change the car regularly


With business car finance, you don’t need to commit to the same vehicle. Simply switch it up every few years. You can also get a more expensive car with leasing finance.

Can claim up to 50% VAT


If your company is registered for VAT, then you can claim it back if the car is used solely for business purposes.  

Business Car Finance Considerations

Can be difficult to obtain


If a business is under two to three years’ old, you will need to provide more proof. This is all to make sure that you can pay back the financing company. It includes giving at least three months’ worth of bank statements. Other proof may be required.

Excess mileage


When leasing a car, mileage is extremely important, so it’s best to stick with it if you don’t want to be charged for every additional mile. 

Damage charges


If you return a vehicle in a condition that’s below Fair Wear and Tear standards, you’ll also need to pay for the damages.

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