Financing a company vehicle or fleet

Why finance vehicles at all

Vehicles are expensive, depreciating assets — tying up a big cash lump in them is rarely the best use of company money. Asset finance lets you spread the cost over the years the vehicle earns its keep, preserving working capital for trading. For most companies, financing the fleet and keeping cash working beats buying outright.

Hire purchase — own it in the end

Hire purchase spreads the cost in instalments and hands you ownership with the final payment. You can claim capital allowances on the vehicle, and it's yours at the end. It suits vehicles you'll keep for the long haul and want on your balance sheet. A balloon payment can lower the monthly cost, with a lump due at the end.

Finance lease and contract hire — use it, don't own it

A finance lease or contract hire lets you use vehicles without owning them, often bundling maintenance and fixing costs for the term. Payments are usually deductible as an expense, and you hand the vehicles back at the end. This suits companies that want predictable costs, regular replacement, and no residual-value risk on ageing vehicles.

Choosing between them

The choice turns on three questions. Do you want to own the vehicles (HP) or just use them (lease/hire)? Do you value the lowest monthly cost, or long-term ownership? And which tax treatment — capital allowances on a bought asset, or deductible lease payments — fits your position? There's no universal winner; match it to how you run and replace vehicles.

Keep it on the company

Vehicle finance should sit on the business, not on you. Credicorp lends to the company, not to you personally, and takes no personal guarantee, and asset finance is secured on the vehicles themselves rather than your home. Work out the total cost of each option with the true cost calculator.