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Vehicle financeLast updated: 11 Aug 2026
Business car finance and auto loans
Business car finance lets your business spread the cost of a car over fixed monthly payments instead of paying for it outright
In need of a simple and fast solution to finance your next business vehicles? You can seamlessly find out your budget, apply and compare deals for your business vehicles with Capitalise. Simply enter the registration of the vehicle, or let us know a make and model to get started.
CAPITALISE IS TRUSTED BY 200,000+ UK BUSINESSES
Over £2bn in funding offers
130+ business lenders
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How does business car finance work?
Business car finance works by a lender funding most of the vehicle's cost, while your business repays it in fixed monthly instalments over an agreed term, usually 1 to 5 years. What happens to the car at the end of the agreement depends on which type of finance you choose. You put down a deposit, typically 10% to 20% of the car's price, though some lenders on our panel will fund the full amount depending on your credit profile. The lender then looks at your business credit score, trading history and the vehicle itself before confirming your rate.
Why use Capitalise business car finance?
Better cash flow
Financing a car keeps cash in your business rather than tying it up in a single purchase, so you can put working capital towards stock, wages or growth instead. I
Spread costs
Fixed monthly payments make budgeting straightforward, since you know exactly what a car is costing your business each month rather than facing one large upfront bill.
Tax benefits
Depending on your business structure and the finance type you choose, business car finance can carry VAT recovery and capital allowance benefits that buying personally does not
How much does business car finance cost?
The cost of business car finance depends mainly on the price of the vehicle, your deposit, the length of the term and your business credit profile. As a guide, here is what the monthly repayments could look like across a few common car prices, based on a 10% deposit, a 3 year term and an illustrative 11% APR.
Car price | Deposit | Monthly repayment | Total interest | Total cost |
|---|---|---|---|---|
£15,000 | £1,500 | £442 | £2,411 | £17,411 |
£25,000 | £2,500 | £737 | £4,018 | £29,018 |
£45,000 | £4,500 | £1,326 | £7,233 | £52,233 |
A bigger deposit brings both the monthly cost and total interest down, since your business is borrowing less from the outset. Stretching the term has the opposite effect on total interest, it lowers the monthly repayment but adds to what you pay overall, since you are paying interest for longer. These figures are illustrative only. For a result based on the exact car price, deposit and term you have in mind, run your own numbers through our business car finance calculator.
Typically, you'll have several options when it comes to financing a car through your business
What are the different types of business car finance?
- Learn more about hire purchase
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Hire purchase (HP)
Your business pays an initial deposit followed by monthly instalments over an agreed term. Once all payments are made, your business owns the car outright.
- Learn more about finance leasing
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Finance lease
Your business essentially rents the car for an agreed period. At the end of the lease term, you can either return the car, extend the lease, or purchase the car for a pre-agreed amount.
- Learn more about operating leases
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Operating lease
Similar to a finance lease, an operating lease involves renting the car for a fixed term. However, with an operating lease, you typically have the option to return the car at the end of the lease without any further obligations.
- Learn more about contract hire
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Contract hire
Your business leases the car for a fixed term and mileage, paying a predetermined monthly rental fee. At the end of the contract, the car is returned to the leasing company, eliminating concerns about depreciation and resale value.
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Am I eligible for business car finance?
Most lenders on the Capitalise panel base a decision on the business itself and the vehicle together, so eligibility usually comes down to a mix of the following.
Even if your circumstances are not perfect, a shorter trading history or a lower credit score, it is worth exploring your options, since some lenders on our panel specialise in cases mainstream banks turn down.
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What documents do you need for business car finance?
Having these ready will speed up your business car finance application:
How do I apply for business car finance?
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Search for car finance with Capitalise
Enter the registration of the car you want to finance, or let us know the make and model, and we will start matching you with suitable lenders.
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Apply in your business's name
Tell us about your business and provide the requested documentation, so lenders can assess your application.
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Get matched and funded
A dedicated funding specialist takes your application to the lenders on our panel best suited to your business, and supports you through to completion.
GET BUSINESS CAR FINANCE
Ready to apply for car finance?
Enter your car's registration, or tell us the make and model, then apply for business car finance and compare quotes from our panel of 130+ UK lenders, with a dedicated funding specialist supporting your application from start to finish.
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