Financing 101: How to finance your commercial vehicles in 2023

Whether a single trailer or a fleet of HGVs, there are several ways to finance a commercial vehicle investment without compromising your cash flow.

The number of businesses investing in new equipment to improve efficiency, comply with legislation and meet demand is growing. According to the Finance and Leasing Association (FLA), asset finance new business grew by 12% in November 2022, and the commercial vehicle finance sector had a 10% increase year-on-year.

If you’re considering how to finance new vehicles or upgrade existing ones, read on to discover some of the best options available.

Types of heavy commercial vehicles you can finance

  1. Buses
  2. Coaches
  3. HGVs
  4. Trailers

Four ways to finance commercial vehicles

The type of finance you choose depends on whether you want to lease or ultimately own your assets once the agreement is complete.

1- Hire Purchase

If you want to own your assets, hire purchase is one of the most straightforward routes to ownership.

Hire purchase spread the total cost over a fixed-term period and include the investment on your balance sheet as an asset. At the end of your agreement, you will own the asset outright.

If you want to lease your assets, contract hire, finance leasing, or an operating lease is ideal.

2- Contract Hire

Contract hire enables you to pay fixed monthly fees to lease a commercial vehicle without taking on ownership. All maintenance and wear and tear is the responsibility of the lender.

3- Finance Lease

Finance lease allows you to hire a commercial vehicle for a fixed period but take on maintenance costs yourself. At the end of the agreement, you can return the vehicle and receive 95% of the proceeds as a sales rebate.

4- Operating Lease

Operating lease gives you access to the assets you need with a low monthly rental and no commitment to ownership. Maintenance is your responsibility, and you can return your vehicles at the end of your agreement.


Do I have to put down a deposit?

For contract hire there is no deposit but for hire purchase, operating leases and finance leases a deposit is required. Speak to us to find out more.

Will I have to pass a credit check?

Yes, when you finance a vehicle with Asset Alliance you will be required to complete a credit check before being approved for finance.

What is the maximum repayment period?

The maximum repayment period is typically five years, but this can be shortened or lengthened on a case-by-case basis.

Find out about our asset finance today.