Director unable to access finance for car

[MARKYWEB]

Can a spouse pay for a car and then let the company use the car because the Director(only employee) couldn't get a bank loan or any other finance to lease or purchase the vehicle for the company.
If the car is leased and in his name then surely the company couldn't use the vehicle and the insurance implications wouldn't be agreed by the leasing company.
Is the only option available an outright purchase by the spouse with the company paying the market rate for the vehicle.

Is there any other solution on how a limited company can get use of a vehicle with the Director having a poor credit rating with the spouse buying the car on h.p or leasing the car and having no links with the limited company.
The Director would pay him back like a rental contract but not sure about the legality.

[King_Maker]

Yes, it might be possible with good paperwork/documentation. Making the spouse a director/employee might assist?

I assume the mileage rate option of 45p/25p is less favourable?

[MARKYWEB]

Thanks Kingmaker. The spouse doesn't want to be part of the company.
So the easiest way is just to use the car as a personal car and claim business miles.
I think this would create a problem as the limited company is in the childcare sector and the vehicle was to be used to collect and drop of children so probably more than the Director using it. Surely for insurance purposes this becomes a problem if the vehicle is in the spouses name but is used by the Director, employees and children.

So my understainding is the only option available is for the company to rent the vehicle. This would be payable equivalent to the leasing payments that the spouse continues to pay the finance company.
I have no idea how this would work with the care inspectorate and insurance.

[King_Maker]

Yes, make sure you get a good insurance broker to cover the correct business use.