Financing New Vehicle Purchases In Your Business

Most businesses need some form of vehicle or another (or several) to facilitate their operations.

Yet financing a new vehicle purchase isn’t always as easy as it might sound – at least not if you’re looking for a cost-effective deal.


Whether you’re in a largely office-based business, road haulage, public transport or any other form of activity, vehicles might be at the core of your operation.

That might be a car, bus, HGV, LCV or simple van.

In one sense, the fact that there are almost as many financing options available as there are new vehicles on the road, might sound like good news! Unfortunately though, the plethora of routes for financing a vehicle purchase can turn the challenge of finding a suitable option into something of a nightmare.

That is where we at ACF Direct can typically help, because we are experts in all types of vehicle purchase financing.

Finance types

Even if you have some liquid cash in the bank, using it for a vehicle purchase may not always be the best use of your capital.

If, for whatever reason, you do choose to finance your purchase then you’ll typically have a few generic possibilities open to you. Each of these has its pros and cons.

Typically, however, hire purchase (HP) is the most traditional and familiar way to purchase a vehicle. It involves making typically standard monthly repayments over the term of the loan to the lending company. These are usually fixed monthly amounts.

While you are repaying the loan, the vehicle is not ‘yours’ though you are its registered keeper and are responsible for it in all ways. It only becomes yours once you have paid the final amount. Note that you cannot dispose of the vehicle prior to the final payment, unless you have the lending company’s permission. To do so without such permission would be a criminal offence.

The option for you

In a brief article of this nature, we can’t say what would be a suitable option for you.

Some funding arrangements are perhaps more suited to those with commercial vehicles than those looking to fund say a company car. Others may depend upon your overall company or personal position vis-à-vis taxation, balance sheet and profit and loss.

What we can say though is that we have unrivalled expertise in all forms of vehicle funding. Once we have spent a little time discussing your specific and unique circumstances with you, we will typically be in a position to outline some attractive propositions for you going forward.