School transport and private coach hire finance covers the full range of passenger vehicles used in educational transport: school minibuses, SEND (Special Educational Needs and Disabilities) transport vehicles, private hire coaches for school trips, and contracted passenger vehicles for Local Authorities. Lenders with appetite for this sector understand the importance of DBS-checked drivers, operator licensing, and the stable contracted income typical of school transport.
Vehicle Types Financed
- School minibuses - 8-16 seats, accessible or standard
- SEND transport vehicles - wheelchair accessible, smaller capacity
- Coaches for school trips - 20-53 seats, full PCV
- Local Authority contracted vehicles - for LA-commissioned school transport routes
Regulatory Requirements
Operators using vehicles for hire or reward require: a Public Service Vehicle (PSV) operator's licence from the Traffic Commissioner; DfT-compliant vehicle standards; and DBS-checked drivers. Private school transport on a not-for-hire basis has lighter regulatory requirements. Lenders view PSV licensing as a positive indicator of a professional, established operator.
Rate Guide - October 2026
| Vehicle Type | Rate Range (APR) | Term | LTV |
|---|---|---|---|
| New school minibus (8-16 seats) | 5.5-8% | 3-5 years | 85% |
| New coach (20-53 seats) | 5-7.5% | 3-7 years | 85% |
| Used school minibus (under 5yr) | 7-11% | 2-4 years | 80% |
| SEND transport vehicle | 6.5-10% | 3-5 years | 80% |
| Adverse credit / start-up | 11-16% | 2-3 years | 65% |
Worked Example - Private Coach Hire Operator
| Detail | Figure |
|---|---|
| Asset | 2023 Caetano Levante III 53-seat coach |
| Purchase price | £285,000 |
| Deposit (15%) | £42,750 |
| Amount financed | £242,250 |
| Term | 60 months |
| Rate | 6% APR |
| Monthly payment | approx. £4,680 |