HGV finance and leasing

For buying and refinancing heavy goods vehicles (HGV's)

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HGV finance and leasing

 

At Clifton Private Finance, we recognise the critical role that Heavy Goods Vehicles (HGVs) play in the UK’s economy.

HGVs encompass a broad spectrum of vehicles designed for commercial purposes, typically exceeding 3.5 tonnes in weight.

These include lorries, articulated trucks, and coaches, which are essential for the transportation of goods and passengers, supporting sectors from construction to logistics.

here, we'll delve into the specifics of financing and leasing options for HGVs, ensuring your enterprise is equipped to flourish without the hefty upfront costs of vehicle ownership

  • Finance from £25,000
  • Competitive vehicle finance that often outperforms in-house car dealer offers
  • Tailored bespoke service
  • Finance available on new, used and auction-bought heavy goods vehicles, LCVs and vans
  • Business owners - Refinance existing assets to free up your company's liquid capital
  • Asset finance for heavy goods vehicles (HGV's) 

 Success Stories

£13m Asset Finance Loan for Pharmaceutical Business | Case Study
£13m Asset Finance Loan for Pharmaceutical Business
Area
London
Capital Raised
£13m
Date
November 2024
Fleet of Vans Refinanced to Release £160k for Business Growth
Fleet of Vans Refinanced to Release £160k for Business Growth
Area
Cardiff
Capital Raised
£160k
Date
September 2024
Fast Asset Finance for Two Tractors at Low Rate | Case Study
Fast Asset Finance for Two Tractors at Low Rate
Area
Somerset
Capital Raised
£558k
Date
July 2024

  See All Business Finance Case Studies

Why Our Customers Trust Us

With expert guidance, asset finance can provide an essential, versatile, and cost-effective solution.

business finance rates

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with business finance lenders across the market.

Award Winning Team

Multi-Award-Winning Team

Our team of asset finance advisers have years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

independent advice

Fully Independent

As an independent brokerage, we focus on your best interests when comparing asset finance options: from costs and terms to speed of service.

To book a free, no-obligation call with an adviser to discuss your options, contact us today.

Book Consultation

Our Experts

Our dedicated asset finance team have deep industry knowledge and years of experience.

Jon Moffatt

Jonathan Moffatt

Head of Business Finance

Ben Francis

Ben Francis

Finance Executive

James Ellcaott

James Ellacott

Commercial Finance Broker

How We Work

1. Get a Customised Quote

Our asset 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! We’ll always be here for any ongoing questions or support you require during your loan term. 

Speak to an asset finance specialist today

Get the funding your business needs to reach its full potential. We’ll guide you through the process and take care of the heavy lifting. 

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HGV Finance and Leasing

A Guide

Different Options Available for HGV Finance and Leasing

 

We are dedicated to providing customised financial solutions for Heavy Goods Vehicles. Recognising the distinct requirements of each enterprise, we present a suite of finance and leasing options specifically crafted for HGVs. Below are the most favoured choices for financing these vital assets:

  • Asset Finance: This is an excellent choice for firms aiming to acquire HGVs without tying up capital. We maintain ownership while you enjoy the advantage of fixed monthly payments. When the term concludes, you have the option to return the HGV, make a final balloon payment to secure ownership, or opt for an upgrade. The benefits of this option include a low initial investment, although it does impose mileage limitations and restrictions on vehicle modifications.
  • Hire Purchase (HP): Distribute the cost of your HGV with consistent monthly instalments. After the final payment, the vehicle becomes yours, with no additional balloon payment necessary. This plan is ideal for businesses desiring predictable costs and ultimate ownership, though it does entail modification constraints until the agreement is fulfilled.
  • Hire Purchase with Balloon Payment: A variant of HP, this option postpones a segment of the HGV’s cost to a concluding balloon payment. It facilitates more transparent budgeting, yet the substantial final payment may be considered a disadvantage, and early termination presents complexities.
  • Finance Lease: Commit to a fixed monthly fee for your HGV over an agreed period, with the vehicle’s ownership progressively transferring to you. This alternative allows for swifter ownership relative to other plans but comes with modification restrictions until the end of the contract.
  • Operating Lease: Suited for the latest HGV acquisitions, the operating lease involves lower monthly payments across a 1-4 year span. At the term’s end, you can return the HGV, apply any equity towards its purchase, or refinance the remaining amount. The perks include decreased monthly outlays and flexibility at the term’s conclusion, with limitations on mileage, condition, and alterations, and ownership dependent on fulfilling all payments or the residual sum.

Remember, choosing the right finance or lease plan for your heavy goods vehicle can significantly boost your business operations. With Clifton Private Finance, securing the optimal solution is more achievable than ever.

Popular Types of Heavy Goods Vehicles Available for Finance

At Clifton Private Finance, we understand the importance of heavy goods vehicles for businesses involved in logistics, construction, and transportation. Financing HGVs allows businesses to maintain cash flow while benefiting from the use of the vehicle. Here are some popular types of HGVs, along with indicative price ranges, that can be financed in the UK:

 
Vehicle TypeModelPrice Range in UK
Tractor Units Volvo FH £85,000 - £120,000
Rigid Trucks DAF LF £50,000 - £75,000
Tipper Trucks Scania P Series £70,000 - £100,000
Box Trucks Mercedes-Benz Atego £60,000 - £90,000
Refrigerated Trucks MAN TGL £80,000 - £110,000
Flatbed Trucks Iveco Eurocargo £55,000 - £80,000
Tanker Trucks Renault Premium £75,000 - £105,000
Waste Collection Trucks Dennis Eagle Elite £90,000 - £130,000
Concrete Mixer Trucks Volvo FMX £95,000 - £125,000
Heavy Haulers Scania R Series £100,000 - £150,000

 

Clifton Private Finance offers a variety of financing and leasing options to suit different business needs and preferences. Whether you’re looking for a Hire Purchase, Finance Lease, or Operating Lease agreement, we can provide tailored advice to help you make the best decision for your business.

Our finance solutions are designed to be flexible, allowing you to manage your HGVs effectively while preserving capital for other business investments.

Tax Implications for HGV Finance and Leasing

At Clifton Private Finance, navigating the tax landscape for Heavy Goods Vehicle finance and leasing is a pivotal aspect of financial management for UK enterprises. We are dedicated to steering you through the complexities to enhance your tax efficiency.

  • VAT on Leasing: For VAT-registered businesses, it’s possible to reclaim 100% of the VAT on lease rental payments for HGVs, provided they are used exclusively for business purposes. If there is private use, the reclaimable VAT may be reduced. Separate maintenance charges invoiced can also have 100% of the VAT reclaimed.
  • Corporation Tax: Companies can claim tax relief on monthly finance payments for HGVs, which can be deducted from the corporation tax bill. The level of relief is influenced by the vehicle’s CO2 emissions, with more efficient vehicles potentially offering greater tax advantages.
  • Vehicle Excise Duty (VED): HGVs are subject to a different VED rate compared to LCVs. The rate is based on various factors, including the vehicle’s weight, type, and usage. As of the 2023/2024 tax year, the VED for HGVs starts at £165 for vehicles up to 3.5 tonnes, with higher rates applicable for heavier vehicles.
  • Capital Allowances: Businesses can claim capital allowances on HGVs, which means a percentage of the vehicle’s cost can be deducted from taxable profits. This is particularly advantageous for HGVs as they are often significant business investments.

It’s crucial to stay updated with the latest tax regulations, as changes can impact the benefits associated with HGV finance and leasing. For example, the UK government’s push towards greener transport means that tax incentives for eco-friendly HGVs may evolve.

We at Clifton Private Finance provide expert advice to ensure that your HGV financing decisions are not only tax-efficient but also perfectly aligned with your business goals. Our team is ready to assist you in comprehending the tax benefits and responsibilities tied to various finance and lease agreements.

HGV Finance Quote

Maintenance and Insurance for HGV Finance

  • Contract Hire: This option includes comprehensive maintenance, servicing, and repairs, ensuring your HGVs are always road-ready. We take care of wear and tear, so you can focus on your business operations without unexpected expenses.
  • Finance Lease: When you choose a finance lease, you assume responsibility for the HGV’s maintenance. It’s crucial to budget for regular servicing and any necessary repairs throughout the lease term. We advise considering a comprehensive maintenance package to manage these costs effectively.
  • Operating Lease: Similar to contract hire, an operating lease often includes maintenance and servicing. This can be particularly advantageous for businesses looking to reduce administrative burdens and ensure vehicle reliability.

Ensuring your HGV is adequately insured is essential. It must be covered under the company’s commercial vehicle insurance policy. We collaborate with select insurance providers to offer competitive rates and cover for individual HGVs or entire fleets, tailored to include both commercial and private use.

It’s important to note that insurance premiums for HGVs can vary based on factors such as vehicle type, intended use, and claims history. We can assist you in finding the right insurance solution that provides the necessary cover while also being cost-effective.

Remember, proper maintenance and insurance are not just regulatory requirements; they are integral to the smooth operation of your business. With Clifton Private Finance, you can rest assured that your HGV finance and leasing arrangements include the necessary provisions to keep your fleet in prime condition.

HGV Finance Quote

End of a Heavy Goods Vehicle (HGV) Asset Finance Plan

At the culmination of an HGV asset finance agreement with Clifton Private Finance, you are presented with several options to proceed in a manner that aligns with your business strategy and vehicle usage:

  • Return: You can return the vehicle to us without any further financial commitments. This option is particularly advantageous if the vehicle was required for a specific project or short-term need.
  • Upgrade: If you wish to keep your fleet modern and efficient, you can apply any equity accrued towards the initiation of a new finance plan for a newer model.
  • Buy Outright: For those who prefer to retain their vehicle for continued use, making the final balloon payment will transfer full ownership of the vehicle to your business.
  • Extend the Lease: Depending on your contract, you may have the opportunity to extend the leasing period, allowing you to continue using the HGV under similar terms.

Each pathway offers distinct benefits and considerations, such as the overall costs, the specific requirements of your business, and the condition of the HGV at the end of the finance term. We at Clifton Private Finance are committed to providing you with comprehensive support and advice, ensuring a seamless transition at the conclusion of your finance plan.

For bespoke guidance on HGV maintenance, insurance, and end-of-plan options, Clifton Private Finance is your trusted ally. Whether you’re ready to discuss the next steps or have other queries, we’re here to assist you every step of the way.

HGV Finance Quote

Using a Finance Broker to Help

Finding the best deal for HGV finance and leasing can be challenging, especially if you are not familiar with the different options, terms, and conditions. That’s why using a finance broker can help you get the best deal and the most suitable option for your purchase. At Clifton Private Finance, we can help you: 

  • Compare different lenders and products: finance brokers can access a wide range of lenders and products, and find the ones that suit your needs and preferences. we'll help negotiate better rates and terms on your behalf, and save you time and money.
  • Advise you on the best option: we can explain the pros and cons of each option, and help you make an informed decision. we'll can also answer any questions you might have, and guide you through the application process.
  • Handle the paperwork and administration: We'll also handle the paperwork and administration involved in securing your HGV finance or leasing. We liaise with lenders, the dealer, and the insurer, and ensure a smooth and hassle-free transaction.

At Clifton Private Finance, we are a leading finance broker in the UK, and we specialise in commericial vehicle finance. We have access to multiple asset finance lenders, and we always compare the best options to offer you bespoke finance solutions that suit your needs and budget. We can also help you with any type of commericial vehicle or heavy goods vehicle - from long-haulers to trucks, and specialised vehicles depending on the business.

HGV Finance Quote

If you are interested in buying a HGV on finance, contact us today and speak to one of our expert advisers. We will be happy to answer any questions you may have, and provide you with a free, no-obligation quote. We look forward to hearing from you soon.

Frequently asked questions

You can find the most common questions asked about business loans below. If you have a question that isn't answered here, please email us at commercial@cliftonpf.co.uk

Asset finance is a way of spreading the cost of equipment used by businesses over time, allowing companies to keep a strong, consistent cash flow whilst minimising upfront costs.

There are many asset finance products to choose from when considering asset finance, such as hire purchase, operating leases and finance leasing, so there are plenty of options to consider for your every business need.

The asset financing structure is the financial arrangement organised between businesses and lenders to secure funding to acquire equipment that is directly related to the operation and growth of the business.

Asset financing typically involves several key elements, which are as follows:

Assets used as collateral:

A lender will likely secure finance against the asset itself or other assets, which can be tangible or intangible.

  • Tangible Assets: vehicles, construction equipment, real estate, or inventory.
  • Intangible Assets: intellectual property, accounts receivable, revenue streams.

Types of Asset Financing:

The following is a list of several products available to business owners as options for asset finance:

Leasing: Businesses that choose to lease do not outright own the asset and pay a monthly cost to use the equipment at a much lower cost than purchasing the equipment.

Hire Purchase (HP): A standard choice for businesses, this option allows you to eventually own the asset you’re paying for after the payment period has ended.

Asset-Based Lending (ABL): A business borrows money against an asset as collateral, and it’s commonly used to acquire working capital for operational or growth needs.

Loan-to-value (LTV): The loan-to-value ratio of assets is the calculation of a percentage which helps to determine the risk of the loan itself. A high LTV ratio typically indicates a higher interest rate for businesses as it’s far riskier to finance.

A low loan-to-value ratio is generally more comfortable for lenders, lower repayment periods and lower fees ensure that the asset can be repaid easily. If an asset depreciates over time, however, and becomes under-collateral, this means that the lender wouldn’t be able to fully recover the amount owed if the asset is repossessed.

Should there be a major decrease in collateral value, lenders might seek to acquire additional collateral from the business owner, or even increase fees and interest, impacting cash flow.

Business loans are products designed for general use throughout businesses. They can be used for general business needs, including asset finance, which has the added benefit of the asset not necessarily being used as collateral for the loan itself.

Asset finance, however, is more specific: its use is for the acquisition of assets and is restricted to only that. Lenders will use the asset itself as collateral for improved lender comfort, being reclaimed in the event that you do not pay your asset finance.

One major distinction between asset finance and business loans is interest rate: asset finance interest is typically lower compared to unsecured business loan interest, which is notably higher.

Should you fail to repay your asset finance, you can face an impacted credit score and ultimately lose the asset in a repossession.

Depending on the asset you’re funding, there’s also a risk of depreciation - particular risk for vehicle finance.

In some cases, if a machine you’re financing is essential to the functioning of your business operations, then factors such as depreciation or loss of efficiency of the equipment can cause lender discomfort, leading to slightly higher interest rates.

Equipment financing is typically used by growing businesses looking to limit the impact on cash flow from an expensive piece of equipment by spreading the cost over a period of time.

Small and medium-sized businesses (SMBs) can use equipment finance to limit the loss of capital and scale up operations without a massive upfront cost to deal with. Accessing equipment finance isn’t limited to a single industry, its uses spread from healthcare with MRI scanners, to construction, manufacturing, agriculture and more.

Let us do all the hard work of finding the right product and lender for your circumstances. We secure business finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Jonathan Moffatt
Head of Business Finance

Book a consultation and speak to one of our experts today

Jonathan Moffatt
Head of Business Finance