A commercial vehicle is, as the name suggests, any vehicle that is used for business purposes. This could include cars, vans, buses, HGV’s and agricultural vehicles. When the need for a commercial vehicle has been identified the biggest decision is what type of finance can be used for the purchase. The three main types are:
- Hire purchase – a business will hire the vehicle from the outset for a set duration and then have the option to purchase at the end of this period. An upfront cost and set mileage limit will also apply
- Finance lease – a business will lease the vehicle but will become the owner once the lease agreement has been settled
- Contract hire – a business will hire the vehicle for a set time. They will pay a fixed amount per month and there will be set mileage limit for the vehicle
One other option that many people often overlook is asset finance which can also be used for the purchase of a vehicle. In essence the vehicle can be considered the asset and therefore a finance deal can be sourced to purchase it. There are many options available and the NGI team have broad experience in finding the exact deal to suit an individual’s business needs.
If you would like to find out more about your options for a commercial vehicle loan, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.