Finance for vehicles for hire
Spread the cost of your vehicles - with finance designed around your business plansSpeak to one of our experts020 4525 5312
Cutting capital requirements
- Buy and spread the cost
- Lease with no capital expenditure
- Low monthly rates
- Repay from operating revenue
Choice of funding types
- Hire Purchase
- Specialist lease
- Contract hire
- Unsecured loans
- Single vehicle - or an entire fleet
- Undercut dealer finance deals
- Electrics - family cars -prestige
- Vans and commercials
There are many different ways to finance vehicles
The option that the dealer offers you, may not be the most cost effective for your hire business
Table of Contents
In recent years, there has been a rise in demand for vehicle rental.
The costs of ownership are high, and many people lack permanent parking spaces. Hiring a car as needed can be more cost-effective for them than buying, and greener.
With the cost of buying and owning a car continuing to climb ever higher, opportunities for car hire businesses are growing fast. Of course, there are challenges. It is highly competitive and you’ll need to carefully consider the market sector you’re trying to connect with. Corporate executives looking for prestige may have very different needs to a family setting off on holiday.
You might also want to consider vans. Providing light vans for removals or transporting heavy goods, can enjoy demand from both private and business customers.
But whatever niche you want to serve, you will be faced with a second challenge - that of finding the most competitive finance for the vehicles you need. At Rangewell we can help.
There are plenty of dealers who can help you find suitable vehicles - but what about the finance?
At Rangewell we know that there are many ways to finance vehicles for business and the most appropriate approach may depend on the type of vehicles you want.
A new vehicle might be more reliable, and manufacturers discounts may mean substantial savings on list prices.
However, the fastest rate of depreciation in car value takes place when you drive it off the dealer forecourt. Buying a used car can help to reduce the cost of depreciation, and a good used car will be cheaper to buy. Car sales have been slow in recent years, which can mean there can be more used cars for you to choose from and that you can also get some really good deals.
It is possible to buy high quality, guaranteed low mileage used vehicles, which have full service history and will still be under warranty. This would give you all the appeal of a new vehicle for your customers, without the costs to you.
Dealer finance - and why it can be an expensive option
Of course, few new businesses will have sufficient reserves of cash to buy new or used vehicles outright.
One of the most popular methods of buying a car - leasing - may not actually be suitable. It is unlikely that you will be able to lease a car or van for hiring out with a conventional leasing arrangement.
You may have to buy vehicles outright rather than lease them.
However, you may be able to start with second-hand models. Clean, low-mileage vehicles can sometimes be found at auctions, but you may prefer to buy through a dealer.
This can seem to make things easier. Your vehicle dealer will be pleased to offer finance plans on used as well as new vehicles. Some will even offer 0% finance to help them close a deal, especially if it is a new vehicle. But remember, borrowing money always costs money. If the dealer can afford to offer 0% finance, he needs to make the cost of the finance back from you in some other way.
This can mean that the purchase price is inflated to pay for the finance - and dealer finance is often a costly option with lots of caveats.
Many dealers actually expect to make more from the sale of vehicle finance than they will from the vehicle itself.
You could be better off asking for the dealer’s best price for cash and paying for your vehicle with finance from a specialist lender.
At Rangewell we can provide a number of finance solutions to suit the needs of you and your business - not the needs of the dealer. We can help you get a quote customised to your business needs by comparing hundreds of vehicle lenders.
Vehicle Asset Finance solutions include:
With Hire Purchase, you ‘hire’ your vehicles until you’ve paid enough to ‘purchase’ them. You’ll normally have fixed monthly repayments so you can keep in total control of cash flow during the term of the loan. When you’ve finished making repayments, your business will own the vehicle.
Unlike leasing agreements, there will be no mileage limits or other restrictions.
HP agreements can run up to 60 months - although shorter loan periods are more common for vehicles - and you can continue to use the vehicle after the end of the agreement as you will own it outright once the final payment is made
Leasing gives you flexibility. You can regularly upgrade your vehicles - important if you are catering to the executive hire sector. With some leasing arrangements, you have the option to own them at the end of the term, or simply give them back.
However, most leasing arrangements will exclude vehicles for hire. It may be necessary to set up a special kind of lease specifically aimed at the vehicle hire industry.
Contract Hire is a special kind of leasing arrangement. Payments are calculated on the purchase value less the estimated value of the vehicle at the end of the agreement.
This means you only finance the value of the vehicle during the time you use it. This helps keep your monthly repayments down and makes it simple to switch to a new vehicle at the end of the agreement.
Contract Hire could be particularly appropriate if you need prestige vehicles for your fleet.
Why come to Rangewell for Vehicle Finance?
At Rangewell, we work across the entire lending market. Our team knows the lenders who specialise in Vehicle Finance, and we know the lenders who are most appropriate for the vehicle hire industry.
Talk to our experts to discuss the details.
REAL EXAMPLES OF WHAT WE CAN DO
Help a holiday company provide classic cars for rental
Source a lease arrangement for a pair of electric city delivery vans
Find the most competitive finance for a hire startup
Help a city operator arrange a single lease to provide 20 new electrics
Discover our range of finances
Every type of finance for every type of business
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.
Helping you build your profits
No upfront capital expenditureThe cost of your fleet can be spread over months or years, with no upfront cash sum to find.
Cutting the costsOur ability to check the entire lending market means we can provide the most cost-effective solution for your business
From a single car to a fleetWhatever the scale of your business and however many vehicles you have, we can find the funding you need
Specialised leasing arrangementsMany leasing arrangements exclude vehicles that will be hired out. We know the lenders who can help.
Hire purchase solutionsNew or used vehicles can cost your business less with a hire purchase solution form a specialist lender - not the dealer
Long term fundingAt Rangewell, we want to work with you and your car hire business for the long term. We can help you find the funding you need now and in the years to come
Download Rangewell’s free and detailed guide to Asset Finance
What is asset finance
What are the types of asset finance
How to find the right provider
Are there downsides to asset finance?
How to arrange asset finance
What paperwork do you need?
Key terms explained
Why is it not a good idea to use personal loans for business use?
Can I get a business car on finance?
What finance options are there for SMEs buying a car or van for business purposes?
What do the monthly payments cover?
Is personal contract purchase an option with buying a car for my business?
What monthly repayments can I expect with business finance for commercial vehicles?
Is it useful to compare car finance quotes and finance deals when you want to apply for car finance or is it better to get a finance quote then approach dealers?
Are all lenders authorised and regulated by the Financial Conduct Authority?
Is business finance always subject to status?
What are finance calculators?
What are typical interest rates for Vehicle Finance?
Does my registered office need to be within the UK?
Will possessing business credit cards negatively affect my credit score?
Is vehicle finance the same as a car loan or personal contract purchase?
Will lenders look at my credit history?
Will the finance company require the car registration number?
The details of a Vehicle Finance agreement, including final payment, subject to status, total cost, the difference between a lender and a credit broker`bank account, car finance options, credit search, and more
Do my individual curcumstances play a part in a lender's decision to loan me the capital to buy a car or van for my business?
`Will I pay more in the long run?