Commercial Vehicle Finance and Leasing

How We Work

1. Get a Customised Quote

Our business finance brokers will get an understanding of your business and your requirements, look at your financial forecasts and accounts, and provide a sense-check on what product(s) will best fit your needs, as well as how much you could borrow, and what the costs and terms could look like.

2. Compare Options

When you’re happy with the proposed solution, we’ll go away and compare options across the market. We’ll often present a range of choices ranging from lowest cost to most flexible, and we’ll talk you through the pros and cons of each if it’s a close decision.

3. Submit Your Application

If you’re happy with the terms we can source, we’ll handle the paperwork and submit your application for you. We’ll handle any issues and questions that may arise from the lender, and we’ll keep chasing your application to ensure funds are released as quickly as possible.

4. Receive Funds

You receive your finance– success! And we’ll always be here for any ongoing questions or support you require during your loan term.

Contents

What is Commercial Vehicle Finance?

Simply put, commercial vehicle finance covers any funding solution that helps your business buy the vehicles it needs. That can include:

With so many options, it’s possible to get a little confused, but it also means there’s a product available that perfectly fits your commercial vehicle finance requirements.

Vehicle Finance Quotes

Asset Finance - Spreading the Cost of Car, Van and Commercial Vehicles

Asset finance refers to three of the main options for commercial vehicle finance: hire purchase, finance lease and operating lease. We'll explain each of these in greater detail below.

As an unassisted vehicle purchase takes a substantial amount of capital, it is out of reach for many businesses. If you need a vehicle for work but can’t afford the immediate outlay, then asset finance lets you spread the cost over months and years - plus it can come with many additional benefits.

Asset finance is finance secured with the vehicle and in all cases, if you fail to keep up with payments, the vehicle can be repossessed.

Hire Purchase - Asset Finance for Businesses Looking to Buy

Hire purchase is a loan that is taken out against the vehicle as collateral. You end up owning the vehicle in full once the loan is repaid and can use it without restriction. Many standard car loans are hire purchase agreements.

Hire Purchase Pros and Cons

Full ownership of the vehicle
Spreads the cost over many months
No restrictions on the use
Wide range of vehicles available, both new and used
Requires significant initial payment (deposit)
Larger monthly repayments
All maintenance, repair, and insurance costs are your responsibility

Read our full guide to hire purchase.

Finance Lease - Flexible Asset Finance for Medium-Long-Term-Use

A finance lease is designed to offer the maximum flexibility to the business, with an option to purchase the vehicle at the end of the term or replace with a newer model. With many modern finance leases offering low initial payments, finance leasing is a great option for businesses lacking the capital reserves to enter a hire purchase agreement.

Finance Lease Pros and Cons

Low initial payment
Flexible option to upgrade to a new vehicle or buy at the end of term
Can come with maintenance and repair support built-in
Regular monthly payments for ease of cash flow
Cost-effective way to afford new vehicles
May have restrictions on use (mileage etc.)
Fewer vehicles to choose from
Penalties for vehicle damage and excessive wear

Read our full guide to finance lease.

Operating or Contract Lease - Medium-Term Vehicle Leasing with Full Support

An operating lease (also known as a contract lease) is an excellent option for businesses looking to have a hassle-free vehicle finance option. With an operating lease, you are effectively renting the vehicle from the leasing company, and it typically comes with maintenance and repairs included. One monthly payment covers all issues and you can use your vehicle with the full confidence that if anything goes wrong, it will be sorted.

Many large commercial vehicle leases, such as tractors or buses, are best suited as operating leases.

Operating Lease Pros and Cons

Full support, including maintenance and repairs
Single monthly payment easy to factor into accounting
Easy to upgrade to new vehicles when needed
More expensive than a finance lease
Greater number of restrictions on use (mileage etc.)
No option to own the vehicle
Penalties for damage and excessive wear

Read our full guide to operating leases.

Traditional Loans - An Alternative to Commercial Vehicle Finance

While asset finance represents a range of specific products designed to facilitate vehicle purchases, it is not the only option available.

Traditional unsecured business loans provide another option and can be preferable to asset finance for businesses looking to combine their vehicle purchase with other expansions. It is often possible to secure an unsecured loan on comparable or even superior terms than equivalent asset finance, and there’s no chance of repossession.

It is always worth discussing your commercial vehicle finance needs with your finance broker before agreeing to a dealer’s asset finance agreement, as it is unlikely it represents the best deal available.

Vehicle Finance Quotes

Specialised Vehicle Finance

Asset finance is not limited to ‘standard’ vehicles, such as cars or vans. Specialised vehicle asset finance is available for a wide range of commercial vehicles and associated equipment, such as:

Agricultural vehicles - Tractors, harvesters, quads, trucks…
Construction vehicles - Excavators, bulldozers, forklifts, loaders…
Public transport - Buses, minibuses, taxis…
Medical vehicles - Adapted vans, ambulances, 4x4 rapid response vehicles…
Aircraft - Light aircraft and helicopters
Boats - Yachts, fishing vessels, houseboats

If you are looking for commercial vehicle finance for any of these more specialised fields, speak to us at Clifton Private Finance - our asset finance team will be able to find you the best deal.

Fleet Finance

Another major component of commercial vehicle finance is those businesses looking for a fleet of vehicles. Fleet finance is available for companies looking to purchase three or more vehicles at the same time, providing a combined payment structure to include all the vehicles.

Fleet finance can be flexible, with options to add new vehicles, upgrade older ones, and even in some cases, options to own at the end of the term.

Speak to us to get a fleet finance deal that’s suited to your business needs.

Apply Now

Our asset finance and commercial vehicle finance teams are experts in finding the best deals from the wide range of options in the UK market. Contact us today to find out more.

Vehicle Finance Quotes

For buying and refinancing Commercial Vehicles

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