How Vehicle Finance Works
The commercial vehicle finance process is simple:
- Find a commercial vehicle that you want to finance,
- Note the value of the vehicle,
- Decide how much of a deposit you want to put down. 10% is usually a good start. The lower the deposit, the more you have to finance, and the higher the overall cost of the vehicle will be.
- Apply for finance through a platform that can help you compare different commercial vehicle finance quotes.
- Decide on the best finance, based on repayment period, pricing and how it suits your business.
- Close the deal and finalize the details with the lender.
Do I Need a Vehicle First?
You can apply without having a vehicle in mind, and see how much finance you can get.
This will allow you to then shop around in the right price bracket.
Lease to Own
There is another type of vehicle finance available which is referred to as a lease-to-own deal. This means that you pay for the vehicle monthly, and then only own the vehicle outright once you have paid your last monthly instalment.
A lease to own structure means that you are unable to write the depreciation of the vehicle into your books, but you can list the monthly repayments as a tax-deductible expense.
It also means the vehicle does not appear on your books, and the loan is not listed as a liability.
Why Apply Through FundingHub and Not With the Dealer?
FundingHub allows you to compare quotes, and our service is free.
Instead of relying on your dealer to give you just one quote, we fetch multiple vehicle finance quotes for you and let you choose the best one.
It's the best way to get vehicle finance.