A limited chauffeur company, established in 2023, approached us to fund a newer vehicle to replace an older car within their fleet. Operating in a competitive, premium market, maintaining a modern and high-spec vehicle offering is essential to meeting client expectations and sustaining fee levels.
The chosen vehicle was a BMW M760e, a significant upgrade that would allow the business to enhance its service and remain competitive.
Highlights
✅ Hire purchase agreement
✅ 60-month term with no balloon payment
✅ VAT deposit only
✅ Cross-company guarantee from their longer-established chauffeur company
✅ Achieved affordable repayments without relying on a balloon structure
The Challenge
The business’s most recent bank statements showed slightly lower income levels, largely due to the outgoing vehicle being older and less competitive within the market. On paper, this required additional explanation, as the reduced income did not reflect the company’s true potential once upgraded.
In addition, the client anticipated high annual mileage. A balloon payment was not a suitable option, as it would introduce unnecessary risk at the end of term due to expected vehicle usage. The client wanted certainty, ownership at the end of the agreement, and manageable monthly payments.
The Solution
We worked closely with the lender to provide full context around the company’s current trading position and demonstrate how income would improve once the new vehicle was in operation.
To strengthen the proposal, a cross-company guarantee was provided from their other chauffeur business, a longer-established company that generates consistent trading history and provides work to the newer entity.
The deal was structured as a 60-month hire purchase agreement with a VAT-only deposit. The vehicle’s strong valuation supported this lower upfront contribution. Crucially, we secured terms the client was comfortable with, without adding a balloon payment, ensuring long-term security despite the high mileage expected.
The Outcome
The client successfully upgraded to the BMW M760e, enhancing their fleet and reinforcing their premium market position.
With a modern, competitive vehicle in place, the business can maintain client satisfaction, protect its pricing structure and continue growing with confidence, all while benefiting from a clear, straightforward ownership structure at the end of term.
Speak to our Finance Specialist…
Robyn Rawling
Account Manager
Mobile: 07592 503 477
Office: 01908 039 489