For UK limited company directors
Company Car Finance for Directors
Exploring your next executive car? Sorbus Finance helps UK company directors understand their vehicle funding options and explore finance solutions around their business and vehicle requirements.
Your next company car deserves a considered finance decision.
Reviewed · Finance subject to status · Not tax advice
Who this is for
Directors and owners of UK businesses considering a new or used executive, premium or electric car, whether replacing a vehicle, approaching the end of an agreement, or deciding between company and personal ownership.
We can consider new and used cars from mainstream executive models through to prestige marques, with finance structured around a business’s cash flow and timeline, subject to lender appetite and eligibility.
Finance routes, plainly explained
Company ownership, personal ownership and leasing can have different financial and tax consequences. These summaries are general; your accountant should advise on your position.
Business contract hire
The business rents the car for a fixed term and mileage. Rentals reflect expected depreciation, interest and any maintenance.
Typically associated with returning the vehicle. The business does not own it.
Hire purchase
The funder buys the car and hires it to the business; ownership passes after all payments and any option fee.
Typically associated with ownership at the end.
Finance lease
The business leases the car for a primary period, often with a residual; the funder retains title.
Not usually ownership; the car is typically sold at the end, with the business sharing proceeds as the agreement sets out.
Personal finance (comparison)
You finance the car personally (for example personal HP or PCP) and the company may reimburse business mileage.
Ownership or return depends on the personal product chosen.
Electric, hybrid, petrol and diesel
Electric
Currently the lowest benefit in kind band. Consider charging, range and residual value uncertainty.
Plug-in hybrid
Rated on CO2 and electric range. Real-world savings depend on how often you charge.
Petrol
Wide model choice and established residuals; benefit in kind rises with emissions.
Diesel
Still relevant for high mileage; a diesel supplement may apply for company car tax.
Rates change between tax years. Check GOV.UK company car tax guidance.
The Director’s Car Finance Planner
Five short steps. An educational comparison of routes based on your answers, with questions to ask before you proceed. Results are shown before any contact form, and you never have to submit.
Start the planner- 1Vehicle requirement
- 2Business circumstances
- 3Funding preferences
- 4Your route comparison
- 5Optional enquiry
Guides for directors
Ownership decision
Company car or personal car: how directors weigh it up
Read guideElectric vehicles
Electric company cars: what directors should consider
Read guidePrestige and executive
Financing a luxury car through your business
Read guideUsed vehicles
Can a limited company finance a used car?
Read guideContract hire
Business car leasing (contract hire) explained
Read guideOwnership route
Hire purchase for company cars
Read guideCash flow
Preserving business cash when choosing a company car
Read guideTax awareness
What is benefit-in-kind tax on a company car?
Read guideVAT awareness
VAT and company cars
Read guideRenewal and replacement
What happens at the end of a business car agreement?
Read guideBy marque
Supercars and specialist vehicles: see prestige asset finance. Running several vehicles: fleet finance.
How an enquiry works
- 1
You share requirements
Via the planner or a call. No bank logins or ID documents at this stage.
- 2
We discuss options
A Sorbus broker talks through routes and what funders may need.
- 3
Funders are approached
With your agreement, we seek quotations from suitable funders.
- 4
You decide
You compare actual quotations. There is no obligation to proceed.
Questions directors ask
Can I get a company car through my limited company?+
Generally yes, if the company can fund or finance it. Private use usually creates a benefit in kind for you and Class 1A National Insurance for the company.
How does finance for a company car work?+
The business enters an agreement such as contract hire, hire purchase or a finance lease. The funder assesses the business and often the director. Terms depend on the vehicle, deposit and credit profile.
Can my company finance a car if it has only recently started trading?+
Sometimes, though funders may ask for a larger deposit, a personal guarantee or more information. Approval is not guaranteed.
Does Sorbus give tax advice?+
No. We explain finance structures and can work alongside your accountant, who should advise on tax.
Is Sorbus a lender?+
No. Sorbus Finance is an independent credit broker. We may receive commission from funders, as set out in our commission disclosure.
Sorbus Finance is an independent credit broker, not a lender, and does not provide tax advice. Finance is subject to status, affordability and lender criteria. See our commission disclosure and privacy policy. Sources: company car tax, VAT Notice 700/64, capital allowances on cars.