Financial solutions for Vehicle Maintenance

Or call a Vehicle Maintenance finance expert on +442033182613

Funding for equipment

  • HP from 6-60 months
  • Leasing with no cash upfront
  • Specialised funding for vehicles
  • We can usually beat ‘0%’ finance deals from equipment suppliers

Funding for your premises

  • Commercial mortgages from 2%
  • Unsecured loans from 4.9%
  • Refinancing
  • Asset finance
  • Cash flow support

Large-scale funding

  • Raising funds with a commercial mortgage 2% above base rate
  • Secured lending
  • ‘Jigsaw’ funding
  • Asset refinance - letting you use existing investments again

Talk to Rangewell – the business finance experts

Motor servicing and repair is highly competitive, so securing the most competitive funding is vital for success.. At Rangewell, we work across the entire lending market, and use our expertise to find the lenders who will offer the most right funding solutions for you.

There are more than 31.7 million cars and vans on the road in Britain. The day of DIY maintenance has gone, and almost all will require skilled service and repair. It means an increasing demand for garage services - if you can call on the funding to provide ever more sophisticated test, analytic and repair equipment.

Running a car maintenance operation may be based on mechanical skills and knowledge, but  to work on modern vehicles, your garage business will depend on substantial investment. There is a constant need for new tools, diagnostics and repair equipment.

Workshop premises must meet modern health and safety regulations, and along with your working area you will need  a reception and customer waiting area, payment counter, back-office, toilets and parking spaces for customers.

You will also need insurance to cover buildings, vehicles and public liability. The business  needs to meet demands for rent, business rates, electricity and refuse disposal. You will almost certainly require a waste carrier licence from the Environment Agency to let you dispose of used oil, batteries and tyres.

You’ll also need to bring customers in. Clear signage, listings in trade and local directories and perhaps most important of all a professional website will all be required.

The equipment you will need

You will need a computer, laptop or tablet and a printer. You will need an internet connection to contact suppliers, and the DVLA database if you are also to provide MOT testing and issue certificates.

You will also need to equip your workshop, and your minimum requirements may include:

Complete set of hand tools in locker or trolley

Compressor with tools and Air Impact Wrench Set

2 post lift

Work bench

Hydraulic floor and trolley jacks

Engine Stand

Engine hoist

Axle Stands

Spring Clamp

Smoke Detectors

Cooling system tester

Injector Tester

Compression Tester

Automatic Vacuum Test Kit

Engine Oil Pressure Tester

Brake Pressure Test Kit

Oil Drain/Extractor

Battery charger

Diagnostic machine

OBD II Scanner

Laptop Computer

Multimeter

Digital Wheel Balancer

Wheel Alignment (computerized)

Tire Changer workstation                       

Axle stands

TPMS Scanner

Grease pump

Open Air Reel

Oil Drain/Extractor

Tire Inflation Gauge

Injector Cleaner

Buffer/Polishing Machine

Spray Booth

Spray Booth Compressor

Body Workshop tools

Automatic A/C Service Station

Compressor Tester

A/C Leakage Test Kit

Key Programming Machine

The bill for equipment alone can top £100,000, even before you look at the costs of  providing a recovery vehicle, a van for collecting parts and one or more courtesy cars.

This can seem daunting, but if you have the necessary experience in the trade and can put together a sound business plan, at At Rangewell we can help you find ways to raise the funds you need..

Your funding options

Finance solutions for garage services businesses include:

  • Startup funding

  • Asset finance

  • Premises finance

  • Merchant Cash Advance

 

Buying or setting up a garage business

Setting up as a trader will mean costs, for stock, insurance, and a website, premises and staff  as well as your equipment. Whatever the scale of your business plans, getting the necessary funding can be a challenge, as many lenders are often wary of startups Most prefer to see existing trading records as the basis of  their decision making process.

At Rangewell we know lenders who are able to take a more positive approach, and can often help arrange funding for start up ventures, based on solutions such as secured <link> or unsecured loans <link>.

We can also find solutions if you want to buy an existing business. Although the costs may be much higher than those required for a startup, the ability to demonstrate profitability can help secure finance. One solution for acquiring a business with existing assets is a ‘jigsaw’ finance deal, which uses a variety of funding types to  provide the most cost effective funding for each aspect of your finance needs.

Asset Finance  - providing the equipment you need

Equipment costs will be a major hurdle when you are setting up vehicle service centre. You may be able to make some savings by buying reconditioned items such as a compressor and lift, but most equipment may be best acquired new to deliver the service, and reliability you need.

Asset finance solutions let  you spread the costs of your equipment. They  include a range of funding types,al with the big advantage of  having the lending secured on the assets themselves. This means that the lender can simply repossess them if you don’t keep up repayments, reducing the risk to them and hence the cost to you.

Why not use equipment dealer finance?

Of course, it is simple enough to get finance from the dealer when you buy garage equipment. But the fact is that dealer finance could be a costly option. Even if they offer 0% finance to help them close a deal, the purchase price will be inflated to pay for the finance.

You could be better off asking for their best price for cash, and getting finance from a specialist lender. Your overall costs and monthly payments could both be reduced.

Asset finance solutions include:

Hire purchase

Hire purchase works exactly as it sounds. You ‘hire’ the equipment until you’ve paid enough to ‘purchase’ it.

With HP, you can pay for the equipment you want for the long term with fixed monthly repayments, letting you manage your cashflow better. Arrangements generally last between 6 and 60 months. You pay a deposit plus fixed monthly instalments for the agreed term, after which the assets become yours – which can allow you to continue to use them, or to sell them on.

Items such as hand tools and basic equipment such as trolley jacks may be suited to HP

Lease finance

Leasing gives you flexibility. You are renting the asset, and can upgrade it as you need to. With some leasing arrangements, you have the option whether you want maintenance and insurance to be included.

Leasing may be appropriate for high cost items such as a specialised electronic diagnostic equipment which may need to be replaced or upgraded when a new model is introduced.

Contract hire

Contract hire is another type of asset finance arrangement often used for vehicles - and could be ideal if you need a van or a recovery vehicle. It lets you work with the latest vehicles, budget ahead in confidence and avoid the risks associated with vehicle ownership – like maintenance costs and depreciation.

You set up a contract with a finance company which will buy the vehicle you need, and let you hire it for a fixed period, with an agreed mileage. They will be responsible for maintenance, and will simply repossess the vehicle at the end of the contract, allowing you to acquire another new one with a new contract.

Payments are calculated on the purchase value less the estimated value of the vehicle at the end of the agreement. This helps keep your monthly repayments down, because the vehicle will be sold on by the finance company. You are in effect financing the vehicle only for the time when you are using it. This has the benefit of making it easy to switch to a new vehicle at the end of the agreement.

 

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Asset refinance - Making existing payments easier

If an existing finance arrangement is causing problems, or if you want to redirect cash elsewhere in your business, we may be able to help find a refinance option. A lender will pay off what you owe under your original agreement and set up a new finance arrangement.

This can mean reduced repayments, spread out over a longer term. It could also allow you to release a substantial cash lump sum for use elsewhere in your business.

Find out more about asset finance and asset refinance solutions<link>

Funding for your premises

Your business will need secure parking for customers vehicles and as large a  workshop as possible. A leased unit in a prominent location may be a good first step, and you may need to borrow the deposit on a long term lease as part of your business plans. An unsecured business loan <link> could help you raise the cash.

You could also consider buying premises, with a commercial mortgage, which can be used to buy land as well as buildings, and under some circumstances can even be used to buy an existing business. Commercial property finance is arranged on an individual basis. Some lenders have a minimum of £75,000 or more, but there is no set upper limit.

If you already own your premises,  taking out a commercial mortgage on it might be a cost-effective way to raise funds to use elsewhere in your business.  

Operating costs
Simply operating your business will also mean costs – for staff, utilities and other overheads, until you start to show a profit.  There are a number of ways to provide for these costs.
Borrowing is a simple solution. Business loans may be secured or unsecured.
Unsecured loans are like personal loans, but based on the creditworthiness of your business, and don’t involve holding any of your assets as security. Loans are repaid in monthly or quarterly instalments over an agreed term, usually under 5 years.
Modern lenders can provide fast unsecured lending, but you might need to provide a personal guarantee.
You usually can’t borrow more than one month’s turnover without security, and most unsecured loans providers will not lend more than £250,000. For a new business operation, many lenders might only be prepared to offer a secured loan.
Secured loans are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home, or your business premises.
Providing this security means that the lender can give you longer to repay, and lower interest rates. This means that monthly repayments can be l easier to tailor to your cashflow, and it may be possible to borrow large sums of money if you can provide suitable security.
Our lending teams can discuss your needs, and help you find the kind of loan to fit your business needs. <link>

 

Merchant Cash Advance

Many customers will pay for their MOT and repair work with a credit or debit card.

Merchant Cash Advance or MCA is an innovative approach to raising funds.

An MCA is not a loan. It is actually an advance based on your future revenues from credit card sales, the funds flowing through your merchant account.

It is repaid  - along with fees - by a percentage of every card transaction your business makes. Unlike a loan, an MCA makes no interest charges, just a fixed fee that you know upfront. A small business can apply for an MCA and have an advance deposited in a matter of days, ideal if you have a cash shortfall or an unexpected expense.

Find out more about Merchant Capital Advances <link>

Working capital finance

The early days of any business are challenging.  As its name suggests, working capital finance is designed to boost the capital available to your business when it is not generating sufficient capital itself. It's often used to provide cash to pay staff and operating cost while business is slow or during a period of growth when your cashflow is already stretched. It is usually designed to be repaid in the short- to medium-term, once your garage business is established and running.

Find out about working capital finance <link>

Tax loans

Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems for your cashflow, particularly when it falls at the same time as other costs.

Funding is available to let you spread the cost of your tax demands into affordable monthly payments. This will help ensure that your garage can avoid cashflow problems, and makes it easier for you to budget ahead - and avoid trouble from the taxman.

Find out about tax loans <link>

How we help you capitalise your garage operation

At Rangewell we work across the entire lending industry, and we have finance experts with personal experience in the needs of the garage sector.

Their expertise works for you. Our team knows the lenders who specialise in the garage sector. It means that we can help you find the most competitive rates for all types of finance solutions – from both the established lenders, and the new Alternative Funding providers.

Call us now to see how we can help you raise the finance you need.

REAL EXAMPLES OF WHAT WE CAN DO

  • Find the most competitive funding to allow an existing garage to set up an MOT centre

  • Help an established garage build a new workshop

  • Source a lease arrangement to allow a garage to install a rolling road

  • Find the most competitive finance for a replacement lift within 24 hours

  • Help an established operator to expand their operation by installing an additional lift to let them deal with commercial vehicles

I wanted to set up a specialist service operation for Mercedes cars - but when I saw the costs added up, I thought we could not do it. Rangewell showed us the way.
We needed a new lift fast. The dealers were happy to offer 0% finance but with Rangewell’s help, we found we could get a much better deal - and quickly, too.
Rangewell helped me look at all the funding solutions available when I wanted to buy a garage business. I know I’ve got a great deal.

Helping you build your profits

No upfront capital expenditure

The cost of your equipment can be spread over months, or years, depending on your budget and business plans.

No deposit

You may not even need a deposit with some types of asset finance, and repayment can be spread over years to fit your monthly budget.

Low monthly payments

Lending can be secured on the assets themselves, so interest costs and your monthly repayments can be reduced.

Scaled for your business operations

Whatever the scale of your operation and your finance needs, there will be an asset finance solution to fit it.

Acquire your premises

Buying your premises can reduce your outgoings and provide a valuable asset for your business.

Reducing risk

If your business hits problems and you can’t keep up the payments, the lender can recover their costs by taking the vehicle. No other assets are at risk.

Download Rangewell’s free and detailed guide to Finance for Vehicle Maintenance Businesses

Rangewell Ebook - Download Rangewell’s free and detailed guide to Finance for Vehicle Maintenance Businesses
  • What are the types of finance - which do you need?

  • Why not all providers are equal - finding the one that’s right for you

  • How we can help you pay less than 0%

  • The downsides to Asset Finance - and how to avoid them

  • How to arrange Asset Finance - what paperwork do you need?

  • Key terms explained

  • Download now

Leases may count as debt

Investors may view long-term lease as debt and adjust their valuation of your business – this can mean lenders will reduce loan availability.

Could your equipment be at risk?

If you are unable to keep up repayments on a hire purchase or lease agreement the lender could repossess the equipment you need to do business.

Long-term commitment

Many types of finance will be a long-term commitment, and it may be difficult to renegotiate if your business needs change.

Our service is...

Impartial

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

In-depth

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

In-person

Specialist Finance Experts support you every step of the way.

Free

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