Buying a commercial vehicle can be a significant cost for any business. Whether you need a van for your team, a truck for transporting goods, a lorry for your fleet or a specialist vehicle for a particular job, paying the full purchase price upfront isn’t always the most practical option.
But what happens if the vehicle you want to buy isn’t brand new?
A common question businesses ask is: “Can I get finance for a second-hand commercial vehicle?”
The answer is yes, in many circumstances you can finance a used commercial vehicle. For UK businesses, this can provide a practical way to purchase the vehicle they need while spreading the cost over an agreed period.
What Second-Hand Commercial Vehicles Can Be Financed?
Commercial vehicle finance isn’t restricted to brand-new vehicles. Depending on the vehicle, lender and circumstances of your business, finance may be available for used vans, trucks, lorries, HGVs, trailers, tippers, refrigerated vehicles and other specialist commercial vehicles.
This can be particularly useful for businesses that need to replace an existing vehicle, expand their fleet or purchase a specialist vehicle without using a large amount of available cash in one transaction.
Why Finance a Used Commercial Vehicle?
One of the main attractions of buying second-hand is the lower purchase price compared with a brand-new equivalent.
Combining this with commercial vehicle finance can make the cost more manageable. Instead of paying the full amount upfront, finance allows the cost to be spread across regular agreed payments. This can help businesses retain more of their available working capital for other everyday expenses such as wages, fuel, stock, maintenance and unexpected costs.
It may also enable a business to choose a vehicle that better suits its requirements rather than simply choosing the option it can afford to purchase outright.
Does the Age of a Used Vehicle Matter?
The age and condition of a second-hand commercial vehicle can influence the finance options available.
Lenders may consider factors including the vehicle’s age, mileage, condition, purchase price and expected value. Some lenders also have criteria surrounding how old a vehicle can be when a finance agreement begins or ends.
However, an older commercial vehicle doesn’t necessarily mean finance isn’t possible. Different lenders have different criteria, and specialist commercial vehicles can have significantly different working lives compared with ordinary cars.
What Will Lenders Consider?
The vehicle itself isn’t the only consideration when applying for finance. A lender may also look at how long your business has been trading, its financial position, credit history, the amount you want to borrow and the type of asset being purchased.
Every lender approaches applications differently. This means that if your circumstances don’t fit the criteria of one lender, another lender may potentially be more suitable.
For businesses with more complicated circumstances, being able to explain the background to an experienced broker can be particularly useful.
What If My Business Is New or Has Had Credit Problems?
It’s still worth discussing your requirements.
Businesses don’t always fit neatly into a standard lending profile. A newer business, previous credit issues or an unusual vehicle purchase doesn’t necessarily mean there are no options available.
At H2H Business Finance, we take the time to understand your circumstances, what you’re looking to purchase and why your business needs it before exploring the finance options that may be available.
Finance for Vehicles, Machinery and Equipment
Commercial vehicles are just one area where H2H Business Finance can help.
We can also help businesses explore finance for machinery, equipment and other business assets, providing access to funding solutions across a variety of industries and requirements.
Whether you’re replacing an ageing van, adding another truck to your fleet, purchasing a second-hand lorry or sourcing specialist machinery, our friendly and approachable team is here to help.
Looking to Finance a Second-Hand Commercial Vehicle?
If you’ve already found a used commercial vehicle or you’re considering purchasing one, speak to H2H Business Finance before deciding how to fund it. We’ll take the time to understand your business and the vehicle you need before helping you explore suitable finance options.
Get in touch with H2H Business Finance today to discuss your requirements and find out what options may be available.
Finance is subject to status, lender criteria and terms and conditions. Availability and suitability will depend on individual circumstances.