Our best business vehicle finance and car loans

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Whether it's cars, vans, or other vehicles, the right financing option can help drive your business forward and support your growth

Our best business loans for vehicles

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Author

Joe Phelan

Editor

Lucinda O'Brien

Last updated

February 7th, 2025

Business vehicle finance deals

2 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.

Indicative offers from over 70 lenders

Funding Xchange Business Loan

1 month to 120 months

Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.

Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.

Start Ups and Established Businesses Welcome!

Nationwide Finance Business Loans

Loan Type

Unsecured term loan

Loan amount

£6,000 to £10,000,000

Loan term

12 months to 72 months

Nationwide Finance is a Direct Funder. They help over 50,000 businesses each year get finance. Same day decision and funds in 24 hours. Rated Excellent 5* on Trustpilot and Google. No.1 direct funder for new starts and established businesses.

What is business car finance?

Business car finance allows companies to spread the cost of purchasing vehicles over time, turning a large upfront expense into manageable monthly payments.

There are several options available under business car finance:

Leasing: You can lease a vehicle for a set period, paying monthly instalments towards its use. At the end of the lease term, you typically return the vehicle or have the option to buy it.
Loan: Alternatively, you can take out a loan to buy the vehicle outright and repay it in monthly instalments.
Hybrid options: Some finance plans combine elements of both leasing and loan agreements, offering flexibility depending on your business's needs.

Business car finance makes it easier to manage cash flow and invest in vehicles without a hefty initial cost.

Business car registrations (Jan-Sept 24)^[1]

33,123

How does business vehicle finance 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 can get finance to buy a wide range of business vehicles, including:

Cars
Vans
Tractors
Buses/coaches
HGVs

Different types of business vehicle loan

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.

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 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.

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

Pros and cons

Pros

There are some business vehicle loans that allow you to own the vehicle outright once you've paid off the loan. This can then be a valuable long-term asset for your business.

Business vehicle loans can have flexible terms to suit your business, including repayment schedules.

This type of loan can give the chance to own newer vehicles, so a business can have an up-to-date and efficient fleet.

Cons

As with all loans, your business will incur interest costs and these can add up.

Your business might need to provide an initial deposit to secure the vehicle loan.

Vehicles tend to depreciate in value over time. If the loan exceeds the rate of depreciation, the company may owe more on the loan than the vehicle is worth.

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.

“Before securing a business vehicle finance loan, it's crucial to evaluate interest rates and how it will impact your cash flow. When managed effectively, however, these loans can boost your fleet, streamline operations, and drive greater productivity for your business.”

Joe Phelan

Small business expert

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FAQs

Do I have to put down a deposit?

A deposit may not always be required with company car finance. Some financing options offer 0% deposit deals, allowing you to finance the vehicle without an upfront payment. However, these options typically come with higher monthly payments or a higher overall cost. It’s important to carefully consider your budget and financing terms to determine which option works best for your business’s needs.

Are there mileage restrictions?

Some company car finance options come with mileage limits. The specific restrictions can vary depending on the provider and the type of agreement you choose. Exceeding the agreed mileage limit may result in additional charges at the end of the contract. It's important to review the terms carefully and select a plan that aligns with your business's expected usage to avoid unexpected fees.

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

Whether you'll own the vehicle at the end of your finance agreement depends on the type of arrangement you choose. With hire purchase or lease purchase agreements, you can own the vehicle outright once the final payment is made. However, lease or contract hire options typically don't transfer ownership at the end of the term; instead, you return the vehicle. Always review the specific terms of your agreement to understand the ownership conditions.

Will my business 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, asset finance can be used to fund the purchase of a vehicle for your business. In this arrangement, the lender will purchase the vehicle on your behalf, and you will repay the cost in agreed-upon installments.

Asset finance allows you to spread the cost of the vehicle over time while retaining its use for business purposes. This can be a flexible option if you want to avoid paying the full upfront cost.

Is there a limit on the value of the vehicle I can finance?

The value of the vehicle you can finance will depend on the lender and the specific terms of the finance agreement. Lenders will consider factors such as your business’s creditworthiness, the vehicle’s intended use, and your ability to repay the loan.

For higher-value vehicles, you may be required to provide a larger deposit or meet additional criteria. Lenders might also impose limits based on the type of vehicle being financed (e.g., commercial vehicles vs. luxury cars) and your business's financial standing.

Check with your lender to determine the specific conditions that may apply to the vehicle you want to finance.