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Last updated
November 17, 2023

Business Vehicle Finance Deals

What is business car finance?

Business car finance helps you borrow money to purchase new vehicles for your company.

Put simply, it means you can turn the up-front cost of buying a company car, van or other vehicle into a monthly cost.

Options include letting you lease the car for a period of time and pay towards the cost of the vehicle on a monthly basis, or taking a loan to outright buy the car and paying it back over time as well as several hybrid approaches of the two.

Vehicles registered by businesses in 2022[1]

How do company car loans work?

There are a few options when it comes to getting finance for a business vehicle - especially a new one.

Plenty of manufacturers offer deals directly - including contract hire, hire purchase and full payout leasing.

Discounts and even 0% finance deals are sometimes possible when purchasing new vehicles direct from manufacturers - so it's an option worth checking out.

You can also go to a bank or other lender, general car dealer or specialist leasing firm to pick up a vehicle.

You also can get finance to buy a wide range of business vehicles, including:

  • Cars

  • Vans

  • Tractors

  • Buses/coaches

  • HGVs

"Plenty of manufacturers offer deals directly"

Different types of business car loan

Contract hire

Your business hires a vehicle from the finance company for a set time and pays a fixed amount. Contract hire may come with an agreed mileage limit.

Hire purchase

Your business hires a vehicle and has the option to buy it outright at the end of the term. You normally have to put down a deposit at the start and stay within a mileage limit.

Finance lease

Finance lease lets businesses hire a vehicle for a specific period, rather than outright, and make regular payments towards the cost of the vehicle. This also avoids a huge upfront cost for the business.

Standard business loan

Your business borrows the cash and uses it to buy the vehicle up front, with no mileage restrictions or other conditions.

Green loans for electric vehicle finance

If you're planning to upgrade to an electric vehicle, you actually might find you can access a little more finance than otherwise.

That's because as well as being able to find finance for a new vehicle, you can access green loans too. These are offered by providers to businesses.

On top of that, there are a series of government grants and incentives to help the UK's transition to Net Zero.

You can see what support is available near you on the British Business Bank page for SMEs here.

Electric cars % of new vehicle registrations[1]

Related business products

Organise your spending with a company credit card, and earn rewards too.
Insure your property or goods in case they are lost, damaged or stolen while on the road.
You could save money by using a single insurance policy to cover a whole fleet of vans.
Find out what you need to know and get quotes for a secured or unsecured business loan that's right for you.


Do I have to put down a deposit?

You don't always have to put down a deposit. Some company car finance options require a 0% deposit, but they are more expensive.

Are there mileage restrictions?

There are sometimes mileage restrictions, depending on the company you choose.

Will I own the vehicle at the end of the finance agreement?

In terms of whether you'll own the vehicle at the end of the finance agreement, it depends on the finance agreement you choose. Some require you to pay a final lump sum payment to own the vehicle, so check this.

Will we have to pass a credit check?

Yes, your business normally has to pass a business credit check and demonstrate that it can afford the finance agreement.

Can I use asset finance to fund my vehicle purchase?

Yes, you can use asset finance to fund a vehicle purchase. Asset finance is where the lender purchases your chosen vehicle on your behalf, then you pay them back.

Learn more about business loans

Find out more about how business loans work with out in-depth guides
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About the author

James Andrews
James has spent the past 15 years writing and editing personal finance news, specialising in consumer rights, pensions, insurance, property and investments

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1. SMMT: 2022 car registration totals
2. SMMT: New car registrations, May 2023