Spreading the cost of a truck

By Richard Mitchell
Content writer
Last update: 2 September 20211 minute read
Spreading the cost of a truck

Asset Funding for commercial vehicles

And why dealer finance is often a costly option

Table of Contents

Whatever line of business you are in, it's highly likely that you will need a vehicle in order to run. A car, a van - or in the case of a transport business we worked with recently - a truck. 

There are many challenges facing the transport industry. Road tolls in city centres, staffing shortages and environmental concerns with vehicles all mean new threats - but one challenge remains unchanged - the need to keep costs down.

And this is particularly true when the time comes to acquire a new vehicle.

The challenge

“We needed a new truck because our existing one was coming to the end of its plate. But we could not afford a new model straight from the manufacturer. We needed to find a low mileage used vehicle - but prices were still going to be high.”

Most transport businesses have had to tighten their belts in recent times. Lockdowns cut the number of runs overall - although the rise of home shopping helped some sectors of the industry. However, many operators were looking at downsizing their fleets rather than bringing new vehicles in.

Want to discuss equipment funding?

Speak to our specialist Asset Funding team

Call us

We were approached by a client that wanted to bring in a new vehicle as had been operating his existing truck for several years. He had recently become a limited company and saw the growth of home delivery as presenting potential for his business - which mainly involved subcontracting for a larger transport company.  But he would need to replace his existing vehicle.

“You can’t even contemplate working a truck that is unreliable. If we had a breakdown and missed a run, we could lose a contract.”

In the current climate, the business could not afford a new vehicle, but a low-mileage used model might be within the budget. The downturn had resulted in some very good examples to be found in dealerships across the country.

The owner called his local dealer and found a model he wanted. The dealer was more than willing to provide the finance to cover the cost, but the rate for the Hire Purchase deal they were offering seemed high. 

Why dealer finance is often a costly option

All vehicle dealers can offer finance plans and some even offer 0% finance to help them close a deal, but they hide the real costs. The finance arrangements they offer may be designed to maximise their profits, and mean that the purchase price is inflated to pay for the finance costs.

You could be better off asking for their best price for cash and paying for your vehicle with finance from a specialist lender. In this way, your overall costs and monthly payments could both be reduced.

The owner found an Iveco Curtainsider, with low mileage and the spec he wanted in a local dealership, and asked us to provide an indication of the finance we could secure.

“In the past, we have called Rangewell for the funding we needed - so the logical thing to do was call them again.”

We have a network of business finance experts that cover the country, and our local team were able to call on the client to discuss their needs and look at the possible solutions.

We saw the ideal answer would be asset finance.

Need a truck for your business?

Need a truck for your business?

Find out how specialised Truck Finance can help you afford it

Click here to find out more

Asset funding for vehicles

Buying any type of vehicle for your business means a major capital investment. 

When it’s a high-cost item like a truck. Asset Finance can provide the solution by providing lending secured on the equipment or asset itself - which means that if there is a problem and the borrower cannot make the repayments, the lender will take the asset to recover their cash. This reduces the risk to the lender and so allows interest rates to be reduced - which means that, with asset finance, not only is there no risk to your other business assets, but the rate you pay can be lower than other types of loan

When we help arrange Asset Finance solutions we find a lender to finance your vehicle, with rates and terms to suit your business – not the dealer's. You pay the lender and spread the cost over the term of the agreement while your vehicles are already earning money for your business.

Asset Finance solutions include a number of funding arrangements

  • Leasing can provide the equipment you need without the cost or commitment of buying it - or of any upfront costs.
  • Contract Hire is a specialist type of leasing arrangement often used for business cars and coaches. Payments can be reduced, as they are calculated on the purchase value less the estimated residual value of the vehicle at the end of the agreement. 
  • Hire purchase spreads the cost of buying - letting you hire an asset until you have paid for it in full. 

How we helped

At Rangewell, we work across the entire lending market. Our team knows the lenders who specialise in Vehicle Finance, and those who understand your business sector. It means that we can help you find the most competitive rates for all types of Vehicle Finance solutions.

We put this knowledge to work finding the most competitive deals for anything, from a single van to a complete HGV fleet - or a coach.

The deal we arranged:

We were able to secure the funding required at just 5.5% over five years. 

£14,000 at 9% with 5 years to repay

“Rangewell are not just someone on a phone somewhere. They had someone on the ground who could deal with our application personally - and get things moving fast. The business is starting to pick up again, and we have the truck we can depend on to cope with the demand. That’s thanks to Rangewell.”

Rangewell finds the financial solutions that your business needs, so whenever you need finance for your business, you can be better off with Rangewell.

Our service is easy to use. Just call us and one of our Business Funding Experts will be able to discuss the options and work out the most cost-effective ways to provide the funding you want - whatever the challenge your business plans present.

We’ll search the entire lending market to find the most affordable solutions to your funding needs - and in most cases, our services are absolutely free.

Looking to fund equipment?

find the most appropriate and affordable funding for your needs today

Call us

You may be interested in...

Asset Refinancing Provides £40,000 Capital Injection For New Delivery BusinessCase Study

Asset Refinancing Provides £40,000 Capital Injection For New Delivery Business

New businesses can often struggle to secure finance from lenders due to their inexperience and lack of security. However...

20 January 2023
Refinancing £130,000 To Fund Plant Hire Recovery Post-PandemicCase Study

Refinancing £130,000 To Fund Plant Hire Recovery Post-Pandemic

The COVID-19 pandemic led to enormous disruption in all aspects of UK business. While government-led initiatives have he...

18 January 2023
Finance To Fulfil NHS Tenders

Finance To Fulfil NHS Tenders

NHS contracts are often the gold standard for private clinics and healthcare contractors looking to win more work. The N...

19 June 2023
Accessing The NHS’ Increasing Capacity Framework

Accessing The NHS’ Increasing Capacity Framework

Private clinical businesses must rise to meet the NHS's ever-growing requirements for contracts awarded under the In...

9 June 2023

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.