Car finance. How to transfer into my business name?

MrsYa8

Can any one help or offer advice. 

I took out a car finance in my personal name a couple years ago. 

Since covid my business partner and I decided to cut costs, so decided to sell our business vehicle and use our personal cars for buisness use. My business pays the finance payment  for my car as it’s mostly used for business. 

However I’m trying to get a mortgage and I don’t want an a large finance payment on my credit file when the vehicle is hardly used for personal miles. 

Is there an easy way to transfer the finance agreement into my business  account or is it more complicated than that. 

Thank you. 

[Deleted User]

You'd need to take out a new loan in your business name and then pay off the other one. It can't just be transferred.

robber2

If your business is set up as a limited company you a not permitted to simply use the business to pay the finance off. Your account can explain why and also give you options for sorting out this problem; I guess that in your accounts you will need to re assign all payments either as salary, dividends or a directors loan and then pay any tax etc due.

good luck

Sandtree

Presumably you have already considered the BIK implications of having a company car? 

Grumpy_chap

MrsYa8 said:

Can any one help or offer advice. 

I took out a car finance in my personal name a couple years ago. 

Since covid my business partner and I decided to cut costs, so decided to sell our business vehicle and use our personal cars for buisness use. My business pays the finance payment  for my car as it’s mostly used for business. 

However I’m trying to get a mortgage and I don’t want an a large finance payment on my credit file when the vehicle is hardly used for personal miles. 

Is there an easy way to transfer the finance agreement into my business  account or is it more complicated than that. 

Thank you. 

You don't say whether you operate as sole trader or Ltd Co.  In the context of the OP, I assume Ltd Co.

Either way, for a small private business, a mortgage lender will take into account your personal income and the company income in assessing your borrowing capacity.  This will require your SA103 returns.

As others have suggested, ask your Accountant how to demonstrate income to support a loan and how to structure the payments for the car.