hgv finance and lorry leasing

Most businesses do not have sufficient capital on hand to purchase a Heavy Goods Vehicle or lorry outright.  Whether your current HGV just broke down and can’t be repaired or you have a growing business in need of your first lorry or a few more, you probably need to consider financing your new vehicles or looking at leasing options rather than an outright purchase.  If you aren’t sure which option to choose, here’s a quick overview of some pros and cons of each to help you select.  When you are ready to take the next step, feel free to get in touch as we can offer a range of competitive finance and leasing options.  If you have already found the best vehicle to suit your needs, we can discuss the best solutions to help you pay for it – or if you need help finding a HGV to suit your needs, we have lots of links to help you with that too.

Buying an HGV/Lorry outright or with finance

The big advantage of buying an HGV or lorry is that you have a business asset that will be yours when you pay for it – whether that’s straight away if you have the money available or at the end of your finance period if you have to take out finance to pay for it.  With the asset, comes the responsibility for repairs, breakdowns and maintenance.  Depending on the vehicle, you may be able to claim tax relief immediately on the whole purchase amount and it can be easier to get a hire purchase agreement as you have an asset to borrow against.

Leasing an HGV/Lorry  

When you lease an HGV/lorry you just have to cover the monthly lease payment, the insurance and the fuel.  All these items are business expenses which are tax deductible.  Your money isn’t tied up in an expensive asset, so you can put it to better use.  You get access to a new or nearly new vehicle which normally means it is reliable and has the most up to date technology for fuel efficiency and safety.  In most cases, leases are for a shorter term than finance purchases, so you also have the option to renew your lease to a newer model to help keep your fleet more up to date.  Many leases also come with a support package for breakdowns and servicing - so you don’t have to worry about being caught out and having to sort that yourself.  You can also hand the vehicle back at the end of the lease period if you decide you no longer want it.  The downside is that you will never own the HGV/lorry, so this will be a recurring cost as long as you require it.  You will also be limited by the lease terms and that might restrict your use such as how many miles the vehicle can do each year without penalty and whether you are permitted to add your company logo or branding.

In summary, if you aren’t sure what the best option for you is, why not get in touch and we can talk through the figures for finance v leasing and help you find the vehicle which meets your needs and the needs of your business.

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