Buying a Motorhome Through Your Business
Getting a Approved for a Motorhome Through Your Business—Without the Stress.
Can I Buy a Motorhome Through My Business?
Yes, you can! Many business owners purchase motorhomes through their company, either as a business asset or for specific work-related purposes. However, there are important financial and tax considerations to keep in mind.
Why Buy a Motorhome Through Your Business?
A motorhome can be a valuable asset for businesses that require travel, mobile office space, or client entertainment. Here are some reasons why business owners choose to finance a motorhome through their company:
- Cost Efficiency: Spreading the cost over time with finance options can free up capital for other business needs.
- Tax Advantages: Possible VAT reclaim, capital allowances, and tax deductions on running costs.
- Enhanced Mobility: Ideal for remote work, on-the-go meetings, or businesses requiring travel.
- Branding Opportunities: A company-branded motorhome can serve as a mobile marketing tool.
Purchasing a motorhome through your business can offer financial benefits, tax advantages, and enhanced mobility. Whether you’re looking to expand your operations, improve client engagement, or create a strong brand presence, a business-funded motorhome can be a smart investment. However, careful planning is essential to maximise these benefits while staying compliant with tax and finance regulations.
How to Buy a Motorhome Through Your Business
1. Choose the Right Finance Option
If you’re looking for available motorhomes, you can browse listings on Motorhome for Sale or other reputable marketplaces. Not every business has the cash to buy a motorhome outright. That’s where finance comes in. Depending on your situation, you might consider:
- Hire Purchase (HP): Spread the cost over fixed monthly payments and own the motorhome at the end.
- Finance Lease: Use the motorhome while making lower payments, with the option to sell it later.
- Business Loan: Borrow a lump sum and buy the motorhome outright.
- Operating Lease: Ideal for businesses that want to use a motorhome without long-term ownership responsibilities.
- Asset Finance: Using the motorhome as collateral to secure funding.
2. Understand the Tax Implications
Buying a motorhome through your business can have tax benefits, but it depends on how it’s used.
- VAT: If your business is VAT-registered, you may be able to reclaim VAT on the purchase.
- Capital Allowances: When the motorhome is used solely for business purposes, it may qualify for tax relief.
- Company Car Tax: a vehicle that is used for personal reasons could be subject to Benefit-in-Kind (BIK) tax.
- Running Costs: Fuel, maintenance, and insurance costs may be deductible if the motorhome is used for business purposes.
3. Choose the Right Lender
Lenders are cautious when it comes to financing motorhomes through a business. That’s where First Oak Capital comes in.
We handle the application process for you, increasing your chances of approval. We know what lenders look for and prepare your application to get you the best deal available.
4. Prepare Your Application
To increase your chances of approval, you’ll need to provide:
- Your Business Financials: Profit and loss statements, tax returns, and cash flow forecasts.
- Business Purpose Justification: Explain how the motorhome will be used for business.
- Credit History: A good business credit score can improve approval odds.
Pros and Cons of Buying a Motorhome Through Your Business
Every finance option has its pros and cons. The right choice depends on your business structure, financial situation, and how you plan to use the motorhome.
Pros:
✔️ Spreads the cost of a large purchase over time.
✔️ Potential tax benefits such as VAT recovery and capital allowances.
✔️ Business branding opportunities if used for promotion.
✔️ Adds mobility and flexibility to business operations.
Cons:
❌ Personal use can create tax implications (BIK tax).
❌ Lenders may require a strong financial history.
❌ Higher interest rates if your business has a limited trading record.
❌ Additional insurance and maintenance responsibilities.
Work With First Oak Capital
Finding the right lender on your own can be tricky. We simplify the process, working with lenders who understand business finance. Whether you’re a sole trader, limited company, or partnership, we can help you secure funding quickly and efficiently.
Click here to explore our Campervan & Motorhome Finance options.
How We Can Help
Applying for motorhome finance alone can be frustrating. We make it easier by:
- Find the right lender for you.
- Help you prepare your application.
- Improve your approval chances.
- We get you the best deal available.
Let us guide you through the process, answer your questions, and help you secure the funding you need. Call us today or complete the form on our website to get started.
Q: Can I use a motorhome for both business and personal use?
A: Yes, but mixing personal and business use can lead to tax implications. If you use it for personal trips, expect additional Benefit-in-Kind (BIK) tax charges. Keeping a mileage log helps separate business and personal use.
Q: Can I get motorhome finance with a new business?
A: Yes, but lenders often require extra security or a larger deposit for startups. Demonstrating a strong business plan and financial projections can improve approval chances.
Q: How does financing a motorhome affect my business credit rating?
A: Making timely repayments can strengthen your business credit score. However, missed or late payments can harm your credit rating and make future borrowing more difficult.
Q: How long does the finance approval process take?
A: Many applications receive a decision within days, but complex cases may take longer. Preparing all necessary documents in advance speeds up the process.
Q: What documents do I need to apply for finance?
A: Lenders usually require financial statements, tax returns, and proof of income. Some may ask for a business plan, especially if your company is new.
Q: Can I claim VAT back on a motorhome purchase?
A: When the motorhome is used exclusively for business, VAT-registered companies may reclaim VAT. However, mixed personal use may reduce how much you can reclaim.
Q: Is a motorhome classified as a company vehicle?
A: If primarily used for business, it qualifies as a business asset. However, if you also use it personally, HMRC may classify it as a benefit-in-kind, resulting in additional tax.
Q: Can I insure a motorhome through my business?
A: Yes, businesses can take out commercial vehicle insurance for a motorhome. Be sure to disclose any personal use, as it may require additional coverage.
Q: Are there mileage restrictions on financed motorhomes?
A: Some finance agreements, particularly leases, include mileage limits. Exceeding these limits may result in additional charges, so it’s important to check the terms.
Q: Is a motorhome a commercial vehicle?
A: Motorhomes are based on commercial a vehicle chassis and have commercial vehicle engines. They are currently taxed as commercial vehicles which keeps the cost down for your annual Road Fund License.
A: Motorhomes are based on commercial a vehicle chassis and have commercial vehicle engines. They are currently taxed as commercial vehicles which keeps the cost down for your annual Road Fund License.