Hints & Tips

What do you need to know if you are looking to finance your next vehicle or asset purchase?

Choosing the right vehicle can be a tough decision for your business. There’s a lot of factors to consider depending on your trade but what can be even more difficult is deciding how best to approach the purchase.

Do you opt for finance? How will this impact your cashflow? Is it a good investment? When it comes to finance options for both vehicles or assets for your business, there are several options for you to choose from.

CAVA has many years of experience in helping both established businesses and new starts navigate the minefield of business finance. Over the years we’ve developed trusted relationships with a range of dealers and finance providers, allowing us to access the most competitive deals available to our clients.

Once you’ve decided on your vehicle or have a specification in mind, you can speak with us and we can introduce you to the dealers we work most frequently with, or perhaps you’ve already sourced your vehicle. In which case, it’s time to discuss the basics.

What you’ll need to tell us;

– Budget

– Repayment terms

– Is it a new vehicle or a used vehicle?

– Full UK/EU driving licence

We’re going to focus on using a Hire Purchase as this is commonly used by businesses looking for a new vehicle or asset on finance. Hire Purchase refers to a credit agreement which is used to purchase a new vehicle or asset, whether that’s a taxi, coach, minibus or commercial vehicle or a piece of equipment or machinery. 

You’ll enter into a fixed term agreement, whereby you’ll pay an initial deposit, then monthly payments over a pre-determined length of time.  The payments are fixed, even if interest rates fluctuate. However, you do have the option to pay in full prior to the end of the agreement.  So, why would this be a suitable option for you?



– The customer gets outright ownership of the goods at the end of the contract

– Ability to spread the cost over pre-arranged period

– Nominal deposit required for cars generally or a VAT deposit required for commercial vehicles and assets

– Allows the customer to opt for a higher specification of vehicle or asset than they may be able to afford outright

– Fixed monthly costs

– No large final payment

– No mileage restrictions


– A larger deposit may be required (depending on customer credit status)

– The finance company legally owns the vehicle until the final payment has been made on the agreement

– Interest rates may depend on the credit status of the client

There you have it, a quick guide to the options available to you when considering your next vehicle or asset purchase.  If you’d like any further information on the options above or need some advice around what might be most suitable for you then please don’t hesitate to get in touch.