Commercial Vehicle Finance and Leasing

Success Stories

Read some of our latest business finance case studies below.

£250K PCP for a Ferrari F8 Spider

Capital Raised £250K

London

The Scenario

Supercars are the height of luxury and prestige, and purchasing one outright is no small expense. Vehicle financing is a promising choice for customers looking to minimise upfront costs, but without expert assistance, you’re unlikely to find the most competitive and bespoke solutions for your personal finances.

At Clifton Private Finance, our market knowledge and tailored service approach to vehicle financing ensures that you’re receiving the best possible offers to own the supercar of your dreams.

An aspiring entrepreneur wanted to purchase a £250,000 Ferrari F8 Spider, but rather than using their savings and depleting funds that could otherwise be invested into their business, they sought a reasonable finance solution.

Having reviewed our client’s financial history, which suggested strong creditworthiness, we recommended a PCP agreement to alleviate the Ferrari’s significant cost.

The Solution

Having reviewed a selection of options from lenders, we found a suitable offer which suited the client’s financial needs:

The client paid a 20% deposit and a competitive interest rate, giving them affordable payments split over a five-year timeframe.
After the five-year period, the client could either pay a final balloon payment to own the car or return it – providing complete flexibility.
We arranged a maintenance package to cover servicing, minimising costs should accidental damages occur

We successfully secured the finance on the Ferrari within just two days, and our client was on the road in no time with a much better deal compared to the dealership’s offerings.

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Hired Purchase for £60K Range Rover

Capital Raised £60K

Manchester

The Scenario

When it comes to financing a vehicle, many customers opt for PCP finance, it’s ideal for paying lower upfront costs and monthly payments, but at the end of the PCP term, you risk losing the car if you cannot cover the balloon payment.

A Hired Purchase (HP) loan, however, gives clients ownership of the vehicle after the payment term ends, without the need to pay a balloon payment – a lump sum cost to purchase the vehicle.

Though there are some risks when choosing a Hired Purchase, it’s a great option for owning a vehicle, and there’s some flexibility in terms of early repayment for eager clients too.

A client with a family reached out to us for advice on acquiring a Range Rover Evoque, finding the size, practicality, and aesthetics appealing. The client visited a number of lenders before talking to us, but struggled to decide what option might be best for their finances.

The client wanted to own the vehicle once the payment period was complete, but ideally wanted to avoid a large lump cost.

After reviewing the client’s financials, we decided to recommend a Hired Purchase contract. Here’s why:

The client would own the vehicle by the end of the payment period, and the straightforward payments were suitable.

Cars acquired with an HP loan are not subject to mileage limitations, giving the client greater freedom to travel without worry of additional charges.

There is no need to pay a lump sum at the end of the payment period to own the car, suiting the client’s finances well.

The Solution

Once the client’s creditworthiness was checked, we used our market expertise and reach to acquire several offers that suited the client.

By acquiring a Hired Purchase loan for the Range Rover Evoque, the client received a modern family car that met all of their daily requirements at a monthly cost that suited their finances. The client was incredibly pleased that after competition of the Hired Purchase loan, they would own the vehicle, leaving them highly satisfied with our service.

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£40K PCH for Toyota RAV4 Hybrid

Capital Raised £40K

Birmingham

The Scenario

A number of car finance products give customers the freedom to own the vehicle after the payment term has ended, whether it’s a split cost or a balloon payment. If you’re not looking to own the car, however, and are simply looking for a reliable vehicle at a competitive price, a PCH loan is a excellent choice.

Personal Contract Hire (PCH) loans give customers lower overall costs to pay each month compared to alternative financing options, providing you with the freedom to switch or upgrade your vehicle after the payment term is ended.

A client reached out to us looking for a cost-effective car finance solution, they wanted competitively-priced monthly costs and were not concerned with owning the vehicle after the payment period had ended.

We provided the client with a selection of financing solutions, but found that a PCH was the most cost-effective, and its lack of options to purchase the car after repayment ensured that monthly costs were low.

Here’s why they chose PCH to acquire the Toyota RAV4 Hybrid car:

Lower monthly costs as you’re paying for the vehicle’s depreciation price over the lease term

As the vehicle is not owned by you, there is no concern over re-selling so depreciation isn’t a risk

You can include maintenance and servicing packages to reduce risk of accidental damages

You can acquire a new car once the payment period has ended, suiting those who enjoy having the latest cars.

The Solution

After searching for the best possible offer for the vehicle, we acquired a highly competitive PCH with the following terms:

A 10% deposit was taken for the vehicle, securing the car once paid

A two-year loan period was decided upon with a competitive interest rate, making monthly payments highly affordable.

We arranged a maintenance package for the vehicle, covering the cost of any accidental damages throughout the payment period.

Securing the Toyota RAV4 Hybrid finance within two days, our client was highly satisfied with the speed of our service, and the brand-new car which meets all their requirements.

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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 out there that perfectly fits your commercial vehicle finance requirement.

Vehicle Finance Quotes

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

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 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 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 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 purchase, 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 expansion. 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 to 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 for your business need.

Commercial Vehicle Finance FAQ

Q: Can I get a vehicle with a small (or no) upfront payment?

A: With more flexible leasing arrangements, it is now possible to get lease agreements with a single month upfront. Similarly, if you use an unsecured loan for your vehicle finance, there will be no upfront payment.

Hire purchase agreements do require a large initial payment of approximately 30%, so may not be the right agreement for businesses looking to avoid too much immediate capital expenditure.

Q: What is the cheapest method for vehicle finance

A: A lot depends on the type of vehicle and your business need. Finance lease often provides the lowest monthly payment, and initial cost, with the flexibility to own the vehicle at the end of the term. Talk to us about your commercial vehicle budget and we’ll help you get the deal you need.

Q: Can I adapt a van with commercial vehicle finance?

A: Depending on the terms of your lease, you can add livery to your van and make adaptions to the interior as needed for your business purposes. Hire purchase and finance lease arrangements are typically more flexible, but there are many operational leases available that also have room for adaptations. Make sure you let us know what your needs are as early as possible.

Q: Can I take a lease vehicle out of the country?

A: Some leases will have restrictions including that you are not allowed to take the car out of the UK. However, if this is a requirement then a lease with more flexible terms can be found to suit you.

Q: Will my car be repossessed if I miss a payment?

A: Repossession is really the last call for the leasing company, who would far rather solve the problem in a more amicable way. If you run into difficulties, contact them immediately to let them know, or speak to us about some short term cash flow financing that can see you through a difficult patch.

Q: Can I sell a car I have bought under asset finance?

A: No. Until you have completed your contract, whether that’s a hire purchase or leasing contract, you do not have the right to sell the vehicle. This is because it is listed as collateral on any financing. However, if you use an unsecured loan to purchase a vehicle, it is yours in full and you can sell it on if desired.

Q: How long does it take to get asset finance?

A: Commercial vehicle finance can be done swiftly if your credit is in good standing. In most cases, the vehicle will be with you within a few short weeks.

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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.

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