Key highlights
- Indicative rates from around 6.55% p.a. may be available
- Vehicle, term, deposit and balloon all shape the rate
- Look beyond the advertised rate to fees and comparison rate
- One broker compares a panel to match your situation
Rates are usually the first thing people ask about, yet they are also the most misunderstood. The number that applies to your business depends on a mix of factors, not a single advertised figure. Here is what shapes a business car finance rate and how to read one sensibly.
What does a car finance rate reflect?
A finance rate is the lender's price for the risk and cost of lending to your business. Indicative rates from around 6.55% p.a. may be available to strong applicants, but the figure that applies to you can sit higher depending on your circumstances. The rate is only one part of the overall cost, so it is worth looking at the full picture rather than the headline number alone.
What makes car finance rates go up or down?
Several things influence the rate an applicant is offered, including the age and type of vehicle, the loan term, the deposit or trade-in contributed, the business trading history and the applicant's credit profile. A newer car and a shorter term often attract sharper pricing, while an older used vehicle may be priced higher. Every lender weighs these factors differently, which is why quotes vary across a panel.
How do you compare car finance rates?
When comparing offers, look beyond the advertised rate to the comparison rate, any fees and the impact of a balloon payment on total interest. A lower rate with higher fees is not always cheaper overall. Because rates and policies change regularly and differ between lenders, an indicative quote based on your actual details is far more useful than a general advertised figure. For any tax treatment of interest, check with your accountant or registered tax adviser.
How do you get an indicative car rate?
To see an indicative rate matched to your situation, speak with Overdrive Business Vehicle Finance, where Simon Kendrick compares a panel of more than 80 banks and non-bank lenders. Ask for an obligation-free quote. The initial check is a soft enquiry that does not affect your credit score, with no obligation to proceed.
Ready to compare cheap rates?
Free quote in minutes, decisions in 24–48 hours. No credit-score impact to enquire.