Can I use asset finance to buy company cars and how does it work?

6 October 2017

For many businesses, getting a fleet of company cars, motorbikes or vans can mean be good opportunity to expand their operations.

But, whether getting your sales team out on the road, expanding your delivery service or targeting new locations, you want to be sure that you have financed it on the very best terms that you can.

In this article we look at how asset finance can help you unlock the cash tied up in your existing vehicles or other assets owned by your business to finance your new company vehicles.

How does asset finance for company vehicles work?

Asset refinancing allows you to secure your borrowing for company vehicles against assets owned by your business such as machinery, equipment, IT and many other assets.

This provides a lowered risk for the lender in lending to your business which could help you secure better borrowing rates than a business loan. The ownership of the asset is transferred to the finance provider for the duration of the financing.

Asset finance also gives your business flexibility over your repayments towards your company cars. Your repayments can be spread over as long as 48 months and at the end of the finance term you will retain ownership of the original asset and the company vehicle/s, or choose to extend the finance if you wish to refinance the assets again.

What’s more you can offset the monthly repayment against your tax liability, making it a tax efficient way of borrowing finance for your company cars.

Company car finance from The Funding Store

We are constantly reviewing asset finance providers to bring you competitive options that meet your needs.

From discussing your finance requirements with a member of our experienced team, to visiting your premises to itemise each asset to be refinanced, we make the process from application to securing your finance simple and fast.

Our service also comes with no commitment. Therefore, if we do not find a finance option that you select, there will be no fee for our service.

With your finance taken care of, you can focus on planning on how you will make the best use your new vehicles.

Contact our asset finance team

If you would like to discuss how we can help you find asset finance for your company vehicles you can contact us 7 days a week, or request a call back via the form on this page.

Get in touch

This article has been produced by The Funding Store for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by The Funding Store (MK) Limited. In all cases appropriate professional advice should be sought before making a decision.