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 Type | Model | Price 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.
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.
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.
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.
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.