Finance for luxury vehicles

Are you looking to Hire Purchase, Lease or Purchase a Limousine or Luxury Hire Car?

Limousine and Luxury Hire Car Finance is an incredibly niche market and can sometimes be hard to find lenders who understand the industry.  It generally uses specialised lenders who get the revenue models and expenses in these businesses.

We work with lenders around the country who ‘get’ the funeral and Luxury limousine markets. Fill in the form below and let’s see if we can help you grow your fleet or buy your first car.  

Hire Purchasing a Limousine or Luxury Vehicle – Advantages and Disadvantages

Hire Purchasing is very common for buying Funeral Vehicles and luxury cars like Limousines. Most lenders will be only looking for a deposit of 10% and will usually finance a car for up to seven years, depending on the asset. One of the advantages in the funeral industry, in particular, is the Low Mileage that the cars do. This means, sometimes Hire Purchasing a second-hand Limousine can be incredibly beneficial to your company and well looked at by a lender.

As payments are spread evenly over a period of time, hire purchasing can make budgeting easier for companies, allowing them to know exactly how much money their companies are spending on their most valuable assets every month.  With Hire Purchasing you are doing as the name suggests. You ‘hire’ the car with the commitment to owning the asset at the end of the period. Usually, you will need to pay a small transfer fee to transfer the ownership of the vehicle to your company at the end.

Advantages to Hire Purchasing Funeral Limousines and Luxury Vehicles

• Set fixed monthly payments – to easily manage your cashflow
• Directors don’t need to be homeowners – Unlike other forms of finance, with hire purchasing or asset finance, the lender will use the car as the guarantee and not look for a director’s home or other assets.
• Asset Ownership – At the end of the hire agreement you will own the vehicle.
• Cost – It is often cheaper to Hire Purchase than Lease.
• Second Hand – It is easier to buy a second-hand vehicle using Hire Purchasing than Leasing, especially as millage is lower than other forms of hire transport.
• Bad Credit Rating – It may be easier to obtain a Hire Purchase Agreement if you have Bad Credit or a CCJ. Always get in touch and see how we can help you, despite of your credit situation. You might be pleasantly surprised. 

Disadvantages to Hire Purchasing Funeral Limousines and Luxury Vehicles

• Corporation Tax – As you are a limited company and at the end of your agreement you will own the car, you cannot write off the cost of the vehicle as a loss. This means, unlike leasing, it will not decrease your corporation tax bill. You can, however, write it slowly off as depreciation, but this is a much longer process.
• Payment to Purchase – When looking at financing deals, remember that at the end of the contract you will have to make a final payment to buy the asset. Do the maths and research to make sure if it will be worth it in the long run. 

Advantages and Disadvantages of using Lease Finance to buy Funeral Limousines and Luxury Vehicles

Leasing is not as commonly used in the Funeral Limousine and Luxury Car market but is possible. If you want to buy a new vehicle to start or grow your companies’ fleet – leasing provides a flexible form of finance that can grow and shrink easily with your business. With leasing, the lender will buy and retain ownership of the vehicle. You will pay an agreed amount every month to use the vehicle. At the end of the period, you will be given the choice to give the vehicle back, buy it or upgrade it to a new model.

With the speed of technology advancements in electric vehicles and the increase in taxes and fees for polluting vehicles – this form of finance can really give you the peace of mind you need in forever changing landscape. After your short- or long-term agreement, you can simply upgrade your vehicle to another model, a bigger car or even give the car back and move to another company. 

Advantages of using Lease Finance to buy Funeral Limousines and Luxury Vehicles:

• Latest Model – Having the flexibility and freedom to upgrade your vehicle regularly, gives you the power to always have the cheapest running and cleanest car on the market.
• Finance Costs – Short term agreements give you the freedom to continually look at the market to make sure you are getting the cheapest finance deal
• Short- or Long-Term Contracts – You can choose whether you want a long term or short-term leasing contract. This will allow you to finance for the life of the vehicle, or for a much shorter time, to allow you to upgrade quicker.
• Corporation Tax – As you are leasing your vehicle and don’t technically own the car, you can write the lease payments off as a loss to the company. This means your taxable income on your profits for corporation tax will shrink. This is what is often referred to as ‘debt being cheaper than ownership’.

Negatives of Leasing Taxis and Ubers:

• Ownership – Unless you choose to buy the vehicle at the end, you will never actually own the asset.
• Cost – Leasing is a lot more expensive per month than Hire Purchase Finance. However, with all the perks in Leasing and the freedom and flexibility, it can sometimes work out better value for money.
• Deposit – You will quite often be asked to pay a deposit when leasing. This will range often between 10% - 15% of the value of the car. However, we can easily be able to help you access this finance, to get the deposit you need to start a leasing agreement.   

Every company is different, with different circumstances and needs. The best way forward is to get in touch today and let us help you find out what is best for your business. Fill out an enquiry form and one of our specialist brokers and partners will get in touch to help match you with your perfect investor.