Business Vehicle Finance

SMF1

Hi all,

I am wondering if anybody can point me in the right direction with regards to my query. 

I am planning to start a self drive hire business for horse owners. Would it be possible to obtain a Horsebox on a personal finance package and then transfer it into the companies name? As a startup company there would obviously be no credit record to finance the vehicle through the business. I would be happy to guarantor the finance from my own credit file if it offered the finance companies any reassurance. 

Just wondering if anybody has done something similar or know which avenues I’d be best exploring.

thanks

Ectophile

If it is on finance, then the horebox will belong to the finance company until you have made the final payment.  And since it would be you who signed the finance agreement, you would be responsible for making all the payments.

They have no incentive to allow you to transfer the finance across to a new company with no credit history.

SMF1

Ectophile said:

If it is on finance, then the horebox will belong to the finance company until you have made the final payment.  And since it would be you who signed the finance agreement, you would be responsible for making all the payments.

They have no incentive to allow you to transfer the finance across to a new company with no credit history.

I’m aware they have no incentive to allow the transfer but I’m wondering if it is indeed possible as I’m sure finance agreements stipulate that the vehicle can’t be used for hire and reward from memory when I’ve bought cars. At least for taxiing anyway.

Grumpy_chap

You probably require a business finance solution, but you will then need to provide a personal guarantee.

Grey_Critic

Once you have sorted the finance side out then you also need to consider the insurance - there are specialist companies that insure vehicles used for Hire & Reward which is what self-drive hire is. You would not want the winner of the Derby to be in your vehicle if something went wrong without the proper insurance cover.

Sandtree

Being a start up then you are likely to be required to give a personal guarantee to the loan so that you cannot fold the company and walk away from the debt. Assuming its secured finance you would have to go down the business route to be able to hire it out whilst still under finance.

Flight3287462

A number of years ago I looked into buying a landrover and financing it through (limited ie a few days a month) offroad instruction.  It was the insurance that was the real killer, so make sure you look at all the elements concurrently.