Business car leasing
Whether you want to lease just one business car, or an entire fleet, business leasing can be a useful way of getting new vehicles for your business while protecting your cash flow.
When looking to lease a commercial vehicle, there’s a wide selection of business lease cars to choose from. Whether you’re looking for a BMW business lease, Range Rover business lease, or even a Jaguar business lease, we work with a variety of lenders who can help you find the right business lease deals.
How to get a business car lease
New vehicles for your business
Whether you want a single business car lease, or a whole fleet, business car leasing can be a useful way of getting new vehicles for your business while protecting your cash flow from a large up-front outlay.
Fixed monthly fee
Some car leasing businesses will use the term 'contract hire', while others may say 'operating leases'. All these are different names for the same thing — essentially, you’ll lease the car for an agreed period of time, with a fixed number of miles, and a fixed monthly fee.
Return the car or begin a new contract
When the contract comes to an end, you have to return the car (or begin a new contract). This means you won’t own the car — it can instead be seen as a long-term rental. That way, you can have full use of a new company car for a simple monthly fee instead of an up-front purchase.
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Types of business car leases
Fleet leasing
Business car leasing doesn’t just work for a single vehicle. If your business needs a number of company cars, fleet leasing might be the right way to do it. It's especially useful for businesses who supply customers, or have sales representatives traveling to customers, and there are many other options where fleet leasing might come in handy too.
Three options for fleet leasing
Whether you're leasing one vehicle, or a whole fleet, you'll usually have three options when the contract ends: agree on a second lease period (which may have cheaper payments, as the vehicle(s) will be older), agree a new lease and upgrade your vehicle(s), or return the car(s) and end the lease.
Hire purchase
Some business owners may want to establish a fleet as a long-term investment. In that case, hire purchase could be a better solution. Just like leasing, you’ll have monthly payments, but the key difference is that you'll own the vehicles after the last payment has been made. However, because you're spreading a purchase over time (rather than renting the items) you may have to pay the VAT and an initial deposit upfront.
Business car leasing vs hire purchase
Getting a new company car or fleet is a major decision for you and your business, so it can be quite overwhelming to settle for an option.
Leasing and contract hire may be more flexible in terms of your business’s future, because you can upgrade your vehicle when you renew the leasing contract, or simply allow the lease to expire when your business doesn’t need a car anymore. But if you're using vehicles for the long term, leasing may work out more expensive.
Several cars at once
On the other hand, it can be difficult to purchase several cars at once. Hire purchase means you can spread the cost, and it may also improve the strength of your balance sheet. Hire purchase also offers your business more control — for example, if you'd like your fleet to be branded or modified, hire purchase gives you the flexibility to do so.
Finance leases
Finally, it's worth mentioning finance leases, which fall somewhere in the middle between business car leasing and hire purchase. Finance leases allow you to delay the decision of leasing vs. buying a company car, so you have time to decide whether you want to keep the car in the end. That being said, when you think about fleet leasing, you should bear in mind that it comes with additional maintenance costs. Most companies would usually hire a fleet manager to ensure all vehicles are cleaned and taken care of.
Find the right lender
If you can’t decide which business car asset finance is best for your business, we can help you find the right lender, and see what your business is eligible for.
How much can you afford to borrow?
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
