The importance of Commercial Vehicles

How they contribute to the UK

From delivery and distribution to work vehicles, transportation plays a vital role in our UK economy. Figures from ‘YouGov’ in 2018 recorded a total of 5 million commercial vehicles on our roads, delivering 1.9 billion tonnes of goods every year. Although delivery vehicles make up the lion’s share of CVs on our roads, let’s not forget the 1.8 million sole traders working from their vans on a daily basis. According to ‘YouGov’ 88% of British consumers would admit reduced or restricted CV driven services would affect them significantly.

Popular commercial vehicles:

– Delivery and distribution vehicles
– Private hire and taxis
– Construction and plant
– Work vehicles

– Agricultural
– Public services
– Public transport

Buying a commercial vehicle

The spec… Choose a vehicle that can fulfill the job you need it to do. Whether it’s transporting goods, mobile repair or something more specialised, it needs to meet the requirements of your job. We often finance bespoke and second-hand vehicle conversions for our customers.

The age and mileage… It’s common knowledge that older, high mileage vehicles can present more problems and require further maintenance than newer ones. You will need to weigh up and decide: ‘Will this vehicle be reliable enough for the job I want it to do? Plus, who can deny the peace of mind a manufactures warranty will give when buying a newer vehicle.

Running costs… This may apply more to those who have a large fleet of vehicles such as distribution centres and depots. Due to the nature of your business, your vehicles may be on the road almost 24/7 and therefore may incur large running costs. Petrol, servicing, MOT’s, and repairs are just a few that come to mind. Let’s also not forget the ‘Ultra Low Emissions Zones’ that will come into effect in certain cities within the next few years. Remember vehicles today are far more economical with fuel and better with emissions.

The price… Perhaps the most important variable which can ultimately affect your decision making when buying a commercial vehicle. Whether you like shopping around for a bargain or you know the vehicle you want, you don’t have to settle on what your cash recourses dictate. This is where we can help…

Commercial lorries lined up stationary in car park

Although main car dealerships offer their in-house finance services, you’ll find that their solutions have very little room for flexibility. Being specialists in commercial vehicle finance, we offer a range of finance solutions which can be tailored to fit with your business requirements. Below are two of our most popular vehicle funding solutions:

Finance Lease –

With terms ranging from 1-5 years, this product is a popular choice with most businesses. With no deposit required upfront and the option to settle early at any point during the agreement, it’s clear to see why this is such a popular finance solution.

– Any vehicle type considered
– New or used vehicles accepted
– No deposit required
– Settle early option available
– Tax relief

Recently we arranged a finance lease agreement for a mobile cleaning company in Hertfordshire. The cost of the vehicle totalled £20,627 +VAT and we approved the finance over a 5-year term. No deposit was required from the customer and payment was released to the car dealership within 2 days of receiving the signed paperwork.

Hire Purchase –

A similar agreement to finance lease but this service requires the total VAT to be paid upfront as a deposit. In turn, this means the monthly payments are lower. At the end of the term, the agreement ends and after a small admin fee is paid the vehicle is yours to keep – there are no balloon payments.

– 1-5 year terms available
– Straightforward process and lower monthly payments
– No balloon payment at the end
– New or used vehicles accepted
– Settle early option available

We recently financed the cost of an 18-tonne tanker for a drainage company based in Hampshire. Bespoke modifications were required to ensure the vehicle met the customer requirements which cost a total of £161,500.00 + VAT. The finance was approved same day over a 5-year term.

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Get in touch    

If you have any vehicle buying plans and require a finance quotation please do not hesitate to get in touch. We can provide you with a free finance quotation within 24 hours of your enquiry. Simply enter your details below or phone us on 01420 481 500.

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