Business hire purchase
Fixed monthly payments for company cars and vans, with the vehicle owned by the business at the end.
What is business hire purchase?
Business hire purchase lets your business spread the cost of a car or van over fixed monthly payments. Once the final payment and any option to purchase fee are paid, the business owns the vehicle outright. There’s no large payment at the end and no mileage limit.
Who it’s for
We arrange business hire purchase for:
- sole traders
- partnerships and LLPs
- limited companies, including newer businesses, which lenders assess case by case
- businesses adding a first vehicle or growing a fleet
Lenders will usually look at your trading history, your accounts where you have them, and the business’s bank statements.
Why businesses choose HP
- Ownership. The vehicle becomes a business asset once it’s paid for.
- Predictable costs. Fixed monthly payments make budgeting simple.
- No mileage limits, which suits high-mileage and working vehicles.
Tax and VAT
The VAT treatment and any capital allowances depend on your business and how the vehicle is used. We can’t give tax advice, so check with your accountant before you decide.
Is it regulated?
Finance for sole traders and smaller partnerships can be regulated by the Financial Conduct Authority. Finance for limited companies is generally not regulated, which means it isn’t covered by the Financial Ombudsman Service. We’ll tell you which applies to your agreement.
Compare with business PCP, or call us to talk through which suits your business.
Representative example
Hire purchase
8.9% APRrepresentative
- Cash price
- £15,000.00
- Deposit
- £1,500.00
- Amount of credit
- £13,500.00
- Duration
- 48 months
- 48 monthly payments of
- £333.11
- Total charge for credit
- £2,489.34
- Total amount payable
- £17,489.34
- Fixed interest rate
- 4.61% p.a.
Representative APR 8.9%. Finance is subject to status and available to UK residents aged 18 and over. We are a credit broker, not a lender.
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Other finance options
Personal
All personal car financeAre you a lender?
No. Click Away Car Finance is a credit broker, not a lender. We introduce you to lenders on our panel who may be able to offer you finance. Any finance is subject to status and the lender's own checks.
Do you arrange finance for businesses?
Yes. We arrange business PCP and business hire purchase for sole traders, partnerships and limited companies. Lenders will usually look at your trading history and accounts.
Is business car finance regulated?
It depends on who the agreement is with. Finance for sole traders and smaller partnerships can be regulated by the Financial Conduct Authority. Finance for limited companies is generally not regulated and isn't covered by the Financial Ombudsman Service. We'll tell you which applies before you go ahead.
Can my business reclaim the VAT?
It depends on whether your business is VAT registered, the type of agreement and how the vehicle is used. We can't give tax advice, so check with your accountant before you decide.
Ready to talk about your next car?
Call us now, or leave your number and we’ll call you back.