Business car finance calculator

What is a business car finance calculator?

Our business car finance calculator is a tool that helps you estimate the cost of financing a vehicle for your business. It takes into account various factors such as the loan amount, interest rate, and repayment term to provide you with an estimated monthly payment. This can help you budget effectively and make informed decisions about your company vehicles.

How much can I borrow to finance a company car?

The amount you can borrow to finance a company car will depend on several factors, including your business’s credit score, the value of the vehicle, and what repayments your business can afford.

Using a car and vehicle finance calculator can give you a quick estimate based on these variables. If you’re ready to start applying for business car finance, our funding specialists will help you understand exactly how much you can borrow based on your specific circumstances. Just search for funding to get started. 

How does a car finance calculator work?

Using the car finance calculator is easy, here’s a step-by-step:

1. Start by entering the total cost of the vehicle you’re interested in. This could be the price of a car, van, or even a fleet of vehicles.

2. Input the amount you’re willing to pay upfront as a deposit. A higher deposit can reduce your monthly payments.

3. Choose the duration over which you plan to repay the finance. This could be 1 year, 2 years, 3 years, 5 years or 10 years.

4. If you know the interest rate, enter it here. If not, the calculator may use an average rate to give you an estimate.

5. The business car finance calculator will then provide an estimate of your monthly payments based on the information provided.

What are my options for financing a company car?

As a business owner, you have several options for financing a vehicle. Here’s a brief overview of the different options available:

Hire purchase
How it works: You’ll pay an initial deposit, then make monthly payments.
End result: You own the vehicle once all payments are completed.

Finance lease
How it works: Make monthly rental payments to use the vehicle.
End result: You don’t own the vehicle at the end of the lease, but you might have the option to buy it at a reduced rate if you would like to.

Operating lease
How it works: Similar to a finance lease, you’ll make monthly payments to rent the vehicle, however the lender usually includes maintenance and servicing as part of the price. 
End result: Return the vehicle at the end of the lease term.

Contract hire
How it works: Enter a long-term rental agreement with fixed monthly payments.
End result: Return the vehicle at the end of the fixed term contract without selling or receiving the proceeds from the sale at the end.

Asset finance
How it works: Use the vehicle as collateral to secure a loan.
End result: The business retains ownership of the vehicle at the end of the term.

Each option has its own benefits depending on your business needs and financial situation. If you’re deciding how you would like to finance a business car, take into consideration factors such as your cash flow and often you plan to use the vehicle. If you’re unsure which would suit you best, no need to worry we’ll match you with the lenders most suited to your business. 

Benefits of using a car finance calculator

• Accurate budgeting

By providing a clear estimate of your monthly payments, a finance calculator helps you plan your budget more effectively.

• Time saving

The car finance calculator gives you an instant result, saving you time compared to manual calculations or consultations.