Adding an MOT bay, replacing a tired ramp or opening your first workshop? Garage and MOT equipment finance can help you get the kit in place while keeping cash available for parts, wages and the day-to-day running of your business.
At Johnson Reed, we help UK businesses spread the cost of equipment through leasing and hire purchase. Tell us what you need, send over your supplier quote and we’ll talk you through the funding options.
What can garage equipment finance cover
We can consider finance for individual purchases or a wider workshop equipment package, including:
- Vehicle lifts, ramps and jacking beams
- MOT testing equipment and test lanes
- Diagnostic tools and emissions testing equipment
- Tyre changers, wheel balancers and alignment systems
- Air compressors and workshop tools
New and used equipment may be eligible, depending on the lender, supplier, age and condition of the kit. If your project also includes installation or building work, give us the full breakdown so we can assess those costs separately.
Budgeting for a new MOT bay
The equipment quote is only part of the budget. Groundworks, electrical alterations, delivery and installation can all affect how much you need to spend before the bay is ready to use.
Ask your supplier for an itemised quotation and confirm what it includes. Allow for calibration, servicing, training and any disruption to your existing work. Those costs still need a place in your cash flow forecast, even if they are outside the equipment finance agreement.
Rather than relying on a generic MOT bay price, work from a quote for your premises and the vehicle classes you intend to test. That gives you a more useful starting point for comparing repayments.
Leasing or hire purchase for garage equipment
Equipment leasing lets you use the kit in return for agreed rental payments. The lender owns the equipment, and what happens at the end depends on the agreement. We’ll explain the available options before you commit.
Hire purchase may suit a workshop that wants to own its equipment. Ownership normally transfers after you have made all required payments, including any option-to-purchase fee. The lender may require a deposit or upfront VAT payment.
Compare the total amount payable as well as the monthly cost. A longer term can reduce the monthly commitment but may increase the overall cost. Neither option automatically includes maintenance or a right to upgrade during the agreement.
DVSA requirements still apply
Finance pays for the equipment; it does not authorise your garage to carry out MOT tests. Your site, equipment and testing arrangements must meet the relevant DVSA requirements.
Before ordering, check the current MOT testing guidance with your supplier. Confirm any requirements for equipment approval, connectivity and calibration that apply to your proposed setup. Arranging finance early gives you time to coordinate funding with the wider approval and installation process.
Can a new garage apply for finance
Yes, we welcome enquiries from new businesses as well as established workshops. Having no trading history changes the information a lender needs; it does not mean you should rule finance out.
For a new garage, we may need a business plan, cash flow forecast, details of your industry experience and supplier quotations. We may ask established businesses for accounts and recent bank statements. Affordability, credit history and the equipment itself will all form part of the assessment. The lender may require a personal guarantee.
VAT and tax treatment
Leasing and hire purchase can have different VAT, tax and accounting treatment. Ask your accountant to review the proposed agreement for your business before signing. We can supply the repayment details and agreement structure they need to assess it.
Get your workshop finance moving
Send us your equipment list, supplier quote and target installation date. We’ll look at the project and explain the next steps, including any deposit, fees and end-of-term requirements.
Explore our business equipment finance options or contact Johnson Reed on 0161 429 6949 to discuss your garage or MOT workshop.
Frequently asked questions
Can I finance used workshop equipment
Potentially, yes. The lender will consider the equipment’s age, condition, value and supplier. Send us the details before paying a deposit.
Can installation and groundworks be included
Some associated costs may be eligible, but not every lender will fund every part of a project. We’ll review the full quote and explain whether equipment finance, a business loan or a combination could be suitable.
Can I release cash from equipment I already own
Equipment refinance may be an option where suitable assets have enough value and available equity. It creates a new repayment commitment and is subject to assessment.
How quickly can I get a decision
Timescales depend on the lender and the information provided. Tell us about any supplier or installation deadline when you enquire so we can check what is realistic.
