Finance Assets arranges asset finance for automotive manufacturers and component suppliers, helping UK firms fund presses, robotic cells, CNC machines and test equipment.
Asset finance for automotive manufacturers spreads the cost of production equipment over 3 to 7 years, so cash stays free for materials, launch costs and the long payment terms common in the vehicle supply chain. It suits Tier 2 and Tier 3 suppliers launching parts for a new model, automating a line, or moving into electric vehicle components.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance lets automotive manufacturers spread the cost of presses, robots, machine tools and test equipment over 3 to 7 years.
- Hire purchase leads to ownership, while leases keep the equipment with the lender and spread the VAT.
- Lenders look at programme life, customer concentration and how tooling is paid for.
- Whole robotic cells and production lines can often go on one agreement.
- Finance Assets arranges asset finance for automotive manufacturers trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Presses, injection moulding machines, robotic welding and assembly cells, CNC machines, paint lines and test rigs |
| Deal size | From a single machine to a full production line |
| Terms | Usually 3 to 5 years, and up to 7 years on some new presses and machine tools |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including used presses and machine tools from dealers and other manufacturers |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for automotive manufacturers
Lenders will fund most of the production equipment an automotive supplier runs, from the press shop to final inspection.
| Equipment group | Examples |
|---|---|
| Press and forming | Mechanical and servo presses, transfer presses, press brakes and sheet metal equipment |
| Plastics | Injection moulding machines, blow moulding and extrusion, and ancillaries |
| Welding and assembly | Robotic welding and assembly cells, conveyors and welding equipment |
| Machining | CNC machining centres, lathes and grinders |
| Finishing | Paint and powder coating lines, curing ovens, plating and surface treatment |
| Inspection and test | CMMs, vision systems and X-ray, end-of-line test rigs and EV battery test equipment |
| Handling | Forklifts, automated guided vehicles and racking |
How automotive manufacturers use asset finance
Automotive suppliers usually need new equipment installed and approved well before a new model reaches full production.
- Launching a new programme. Funding the presses, cells and gauges for a new nomination ahead of start of production.
- Automating a line. Replacing manual operations with robots to hold down labour costs and improve consistency.
- Moving into electric vehicle work. Adding the assembly and test equipment for battery, motor and power electronics parts.
- Bringing processes in house. Funding coating, machining or moulding capacity rather than relying on subcontractors.
- Releasing cash. Refinancing machines the business owns outright while customers pay on long terms.
Finance options for automotive manufacturers
Automotive manufacturers mostly buy presses and machine tools on hire purchase, and lease equipment tied to a single programme. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Presses and machine tools you will run across several programmes |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Spreading the VAT on a full line or cell |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Equipment needed for one programme of a fixed length |
| Sale and hire purchase back | A lender buys equipment you own and sells it back over a fixed term | Releasing cash tied up in existing machines |
Hire purchase for automotive manufacturers
Hire purchase is the usual way to buy presses, moulding machines and machining centres. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances, and a balloon payment can lower the monthly cost.
Finance lease for automotive manufacturers
A finance lease suits a full line or robotic cell, because VAT is added to each rental instead of being paid upfront on the whole price. The lender keeps ownership. At the end you can usually keep the equipment on a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for automotive manufacturers
An operating lease prices the rentals around what the equipment should be worth at the end, so the monthly cost is lower and the lender takes the resale risk. It works well for equipment tied to one vehicle model, where the business does not want to own it once that model ends.
Refinancing equipment you already own
A sale and hire purchase back lets a lender buy presses or machines you own outright and sell them back to you over a fixed term, so they stay on the line while the cash comes back into the business. It is often used to fund a programme launch or to bridge long customer payment terms.
VAT and tax for automotive manufacturers
A VAT-registered manufacturer can usually reclaim the VAT on production equipment in full. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return, and many lenders can defer it for a few months. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Automotive equipment finance costs: a worked example
A robotic welding cell at £180,000 and a servo press at £120,000, £300,000 in total, cost about £5,605 a month on a 5-year hire purchase, or about £4,809 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Equipment price (excl. VAT) | £300,000 | £300,000 |
| Deposit (10%) | £30,000 | £30,000 |
| VAT paid upfront | £60,000 | £60,000 |
| Monthly payment (60 months) | £5,604.76 | £4,809.25 |
| Final balloon payment | None | £60,000 |
| Total interest | £66,285 | £78,555 |
The balloon frees up about £796 a month, in exchange for about £12,270 more interest over the five years. Matching the term to the remaining life of the vehicle programme means the equipment is paid for before the work it was bought for comes to an end.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in automotive manufacturers
Lenders look at the usual financial documents, plus the things that show how secure an automotive supplier’s work is.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer firms
- Your last 3 to 6 months of business bank statements
- Your main customers, the vehicle programmes you supply and how long each has left to run
- Any nominations or contracts on new models
- Accreditations such as IATF 16949, and how your tooling is paid for
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for automotive manufacturers and component suppliers that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for automotive manufacturers FAQs
Can automotive suppliers finance robotic welding cells?
Yes. Robotic welding and assembly cells are widely funded, including the robots, fixtures, guarding, controls and installation. Lenders usually treat the robots and their controllers as the core security, so the full cell can often go on one agreement even though parts of it are bespoke to your line.
What if our work depends on one vehicle model?
Lenders will ask about it. Automotive suppliers often build parts for a model with a fixed production life, so lenders look at how long the model has left to run, whether you have nominations on the next generation, and how widely your work is spread across customers. Matching the finance term to the programme life helps.
Who pays for the tooling, us or the customer?
It depends on the contract. Customer-owned tooling is often paid for by the vehicle maker or Tier 1 and is not usually something a lender will take as security for you. Your own production equipment, such as presses, moulding machines and robots, is what asset finance funds. Tell us how your tooling is paid for and we will find the right lender.
Can we finance equipment for electric vehicle components?
Yes. Suppliers moving into battery, motor and power electronics work can fund the assembly, test and inspection equipment they need. Lenders look at the new contracts behind the investment, and very specialised equipment with a smaller used market may be funded over a shorter term.
Does IATF 16949 certification help with finance?
It helps. IATF 16949 certification and approved supplier status with a vehicle maker or Tier 1 show a lender that the business is an established part of the supply chain. They sit alongside your accounts rather than replacing them, but they make lenders more comfortable with larger and longer deals.
Can we release cash from presses and machines we already own?
Yes. Through a sale and hire purchase back, a lender buys machines you own outright and sells them back over a fixed term, so they stay on the line. Automotive suppliers use it to fund a new programme launch, or to free up working capital while customers pay on long terms.
Get an asset finance quote for your automotive business
Tell us what you want to finance
Send us the equipment, the prices and a few details about your customers and programmes. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.