Forza Finance | 12 March 2020

13 Things to Know About Commercial Vehicle Finance

When it comes to your business, a vehicle can be a valuable asset for transporting equipment, staff and products. With livery, it can also act as a great advertisement for your company. Purchasing any asset needs a lot of consideration in order to keep your business on the right track. Fortunately, Forza Finance has the experience and expertise to help you secure the ideal commercial vehicle finance to support and grow your business. 

We can offer valuable advice and access to a wide variety of finance products from an exclusive panel of lenders in order to provide you with the best possible choice and rates. Here are 13 of the most frequently asked questions that our experienced team of advisors encounter.

Which commercial vehicles can I finance with Forza?

Once your budget and finance product is agreed, you can use it to buy any make or model of  commercial vehicle. From pick-ups, vans and lorries, to tankers, buses and refrigerated vehicles. We can help you with the purchase of one vehicle or a whole fleet.

Do I need to shop around for commercial vehicle finance?

You can, but with Forza Finance, you really don’t need to. You can instantly compare the lowest rate vehicle finance deals available on our website. All you need to do is complete our simple online form, submit and get a decision in seconds. Your application is free, no-obligation and won’t affect your credit rating.

Can you help me to find the right commercial vehicle?

If you haven’t already got your eye on a commercial vehicle, Forza can happily guide you in the right direction with our commercial vehicle sourcing service. Through our expert team, you’ll have access to our extensive network of approved dealers to find the best vehicle and finance rate for you.

Once the paperwork has been signed, what do I need to do?

Nothing! Once your finance has been approved, your Forza Finance Advisor will liaise with the selected dealership and arrange for the funds to be transferred in time for the collection of your new commercial vehicle.

What kind of commercial vehicle finance can I get?

Whichever finance type you choose, you can be sure that Forza Finance will find the best possible deal, tailoring the amount borrowed, length of contract and repayment terms to your needs.

Hire Purchase (HP) requires a deposit up front, with the rest of the entire cost of the vehicle split into a pre-agreed number of fixed monthly repayments. At the end of the agreement, you’ll own the vehicle outright, without any further payments.

Lease Purchase (LP) also requires that you pay a deposit, followed by a pre-agreed number of fixed monthly payments. The final ‘balloon’ payment is compulsory and you must budget for it using cash or a second finance agreement, which Forza can also arrange for you. For this reason, an LP contract usually offers smaller monthly repayments than an HP agreement.

How long will my commercial vehicle finance contract last?

Finance agreements can last anywhere between 2 and 5 years. The longer the contract, the smaller the monthly payment will be but, due to interest charged, you’ll end up paying more over the duration of the contract.

Do I need to pay a deposit?

A deposit is not always necessary. However, any deposit that you pay will reduce the amount of your monthly repayments and may even mean that you can afford a shorter contract, paying less overall.

How do I apply for commercial vehicle finance?

Applying for finance is easy with Forza Finance. Simply use our online commercial vehicle finance application form which will instantly present several different options, or contact us to talk through the choices. We work closely with a wide range of commercial vehicle finance providers to ensure that we can present you with the very best deals with lowest rates.

What information do I need to apply for commercial vehicle finance with Forza?

You can apply for finance with Forza either online or by phone. You’ll need a figure for the amount you’d like to borrow, i.e. the cash price for the vehicle you want to buy; and the value of any cash you’d like to use as a deposit. You’ll also need to tell us:

  • The registration of the vehicle you’d like to purchase (if known)
  • Its current mileage
  • The number of miles you expect the vehicle to complete annually.
  • Your employment details
  • Your marital status and home ownership

Can I convert my commercial vehicle or apply decals?

Yes, you can make changes to your commercial vehicle and apply wraps, including logos, contact details and decals. After all, your vehicle can be a valuable tool when it comes to advertising your business. However, if this is done before the end of your finance contract, you must contact your finance provider for approval.

Any changes you make must be made good if, for any reason, the vehicle is returned to the dealership prior to the completion of the finance agreement. In many cases, especially with brand new vehicles, it’s possible to have conversions added at point of purchase, such as tow bars or roof racks, etc, in which case the vehicle can be returned as purchased.

Who can drive a commercial vehicle purchased using a finance agreement?

Anyone covered by the business vehicle insurance and holding the correct driving licence can drive a commercial vehicle purchased with or without finance. 

For example, employees who passed their GB driving test before 1st January 1997 are legally allowed to drive a vehicle with a maximum weight of 7,500kg. Those who passed their test after 1996 can drive a vehicle of up to 3,500kg and will have to pass an additional test to be allowed to handle a vehicle of up to 7,500kg. Being in charge of a vehicle that is larger than this requires a HGV licence. 

If a driver holds a non-GB licence, you should check their driving restrictions on the government website.

What other costs are involved with commercial vehicle ownership?

When deciding on the budget for your commercial vehicle, you’ll also have to take into consideration the running and maintenance costs, such as:

  • Fuel
  • Tyres
  • Repair costs
  • Insurance
  • Licenses, permits and tolls
  • Road tax
  • Driver or operator training and their salary

Will I need to add AdBlue to my commercial vehicle?

AdBlue is used by an increasing number of car manufacturers as part of the Selective Catalytic Reduction (SCR) system which helps to reduce the emissions of diesel engines to meet the required Euro 6 regulations, on which many congestion charges are based.

It reacts with harmful nitrogen oxide emissions (NOx), turning them into harmless nitrogen and water. You’ll need to refill with AdBlue whenever you see a warning light on the dashboard. Consult the handbook to discover whether your commercial vehicle is fitted with an SCR and how you should refill the AdBlue tank. 

Discover the difference that a commercial vehicle purchased using the right finance deal can make to your business by getting in touch with Forza Finance or completing our online enquiry form, today.

 

Header image credit: https://unsplash.com/photos/white-truck-on-road-during-daytime-GBVDilE8yvI