Mike Bailey, CAVA Finance 0161 222 9599
Hints & Tips

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?

 

Pros

– 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

Cons

– 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.

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Commercial, News

It can be difficult to navigate the finance arena as a small business, and to know what’s worthwhile and what’s not when it comes to finance for a new vehicle or asset for the company.

 

CAVA prides itself on providing a no-nonsense approach, whether you’re a start up company or have been trading for years. We treat every customer with the same personal service, advising with integrity and your best interests in mind.

 

A couple of months ago, in October, Mike Robinson of Rothwell Robinson Ltd contacted us to provide a testimonial after we worked with him to secure the finance for a Ford Transit for their building services company.

 

As a small, family run firm, the company was looking for a suitable finance option for the new vehicle but were faced with un-viable options offered by larger dealerships. Munro Greenhalgh insurance brokers recommended us to Mike who then contacted us to discuss a more suitable deal.

As a broker, generally CAVA are able to offer more competitive deals than that which you might receive via motor dealer finance. We are well connected and have access to the whole of market, including specific lenders for taxi finance or specialists in particular types of asset for example.

We’re pleased to have helped Mike and the team at Rothwell Robinson to expand their services in the Greater Manchester area. Take look at their testimonial here and if you’re looking for a sensible approach to vehicle finance, then contact CAVA today on 0161 222 9599.

 

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News

It’s not all doom and gloom this winter! Mike has had a short break in Gran Canaria, visiting Playa Del Ingles where he’s visited previously.

It’s not exactly off the beaten track but certainly less touristy than other areas, Mike has enjoyed a few days by the pool in the sunshine and sampling authentic food from the local restaurants. Not a British bar in sight!

You can take the man out of Bury but you can’t take Bury out of the man, Mike was sporting his new Bury FC Legends shirt whilst away, supporting the club wherever he goes.

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Hints & Tips, News

As a specialist in finance for New Start companies, CAVA wanted to share some tips with those who might be looking to finance a vehicle or asset for their new business.

 

How do you know if you are a new start business?

 

This is usually down to the discretion of the funder. Some funders will view a company as a new start for up to a year but others may view this as 1-3 years so there’s no hard or fast rule that defines a business as a new start when it comes to securing finance.

 

Why can it be more difficult to secure finance as a new start?

 

Generally this comes down to financials and experience. Previous experience in your particular industry is an important factor. If you’re starting a new business which is in an industry you’ve never worked in, you may not have an existing customer base and as such your company is more “risky” to offer finance to than an established one.

 

Secondly, company financials are what a finance company would consider when working with a client. If you’re a new start, financial information will be limited. However, credit scores are also taken into consideration here and it’s not impossible to secure finance as a new start business, CAVA are experts in this area and have built up great connections with lenders.

 

What else might I need to be aware of when sourcing finance as a new start?

 

Our biggest piece of advice is to do your research! Know your numbers, know what you need to borrow, how much can you comfortably afford? Don’t overstretch yourself, be sensible with your first purchase. 

 

This one might seem obvious, but you’ll need to be able to prove your identity and place of residence.

CAVA have helped many new start companies to secure finance, including KP Cabs (Cornwall) Ltd, A&A Travel (Sussex) Limited and Bryants Travel Ltd, all of whom have worked with CAVA for many years now.


Don’t hesitate to get in touch if you’re a new start company looking for assistance with competitive finance. 

 

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News

At the end of October Mike attendee the Bury FC Legends Vs Bury All Stars match at Radcliffe Borough. Mike was delighted to meet his 1970s hero, striker Derek Spence, pictured below.

Derek Spence

It’s been a tough time of late with the incredibly disappointing news that Bury have been expelled from the English Football League after not being able to secure new ownership before the deadline.

Despite this and the impact it’s had on not just Bury fans but Bury as a town, suffering loss of business on match days for example, we wanted to focus on the positives that have come out of a terrible situation.

The match on the 20th of October was superbly organised by 3 Bury fans and saw both ex/retired players together on the pitch. There were over 2000 people in the crowd, all loyal fans. There was an auction following the match, giving fans the chance to bid on players shirts in order to support funding for the Phoenix club. The match raised over £20K, take a look at the video here to get a taste of the atmosphere on the day.

Despite the Phoenix club not yet being launched due to uncertainty around the future of the club, people are still showing their support.

There’s a huge sense of community spirit still, with pubs in the area committed to showing highlights of past matches and providing a place for regular match goers to meet as they usually would, providing income for the pubs that would have been lost. Mike recently featured in a news piece by ITV Granada Reports about this, you can take a look here.

There’s even a pop up exhibition being organised for the 23rd and 24th of November called We Are Bury, featuring memorabilia and kit. We’ve been keeping up with the latest news around the club on the @BuryXI twitter page so if you’re as big a fan as Mike is, get following!

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News, Taxis

Earlier this year it was announced that new incentives were being introduced for taxi drivers, resulting in Electric Taxis being exempt from higher tax rates in order to promote the use of zero emission capable vehicles.

 

The Shadow Business Secretary, Rebecca Long-Bailey also recently announced that a Labour government would invest £5.8 billion into the UK’s automotive industry in a bid to accelerate the shift to EVs.

The proposal has been welcomed by those in the industry who feel this acknowledges the important role which fleets play in helping the UK to reach it’s zero emissions goal.

 

The Government has already backed a Euro 6 conversion scheme which will see NOx emissions reduced in major cities.

What are Euro 6 Standards?

The Euro 6 Standards were introduced back in 2015 and relate to environmental pollution caused by exhaust emissions. The issues lie in aging vehicles which produce more pollutants.

 

In an effort to reduce these emissions, standards have been introduced for manufacturers which mean they are required to meet these standards in order to sell their vehicles.

 

NOx is a pollutant caused by fuels such as petrol and diesel, there are limits in place as part of the Euro 6 standard. The older the vehicle and the higher the NOx levels, the higher the costs in terms of road tax.

 

We have previously looked into the ULEZ (Ultra Low Emissions Zone) which places daily charges on vehicles entering the zone, which are the highest pollutants, in a similar way to the congestion charge. Whilst taxis are exempt from the charges, as of this year all new taxis are required to be zero emission capable. From October 2021 we’ll see an expansion of ULEZs to more UK cities outside of the Capital. 

 

 

How are cars tested for emissions?

The tests are designed to reflect real world driving, with new tests being brought in last year. These focus on fuel economy and emissions, these tests are carried out on real roads as opposed to labs to ensure the tests are as reflective of real life as possible.

 

Taxis are at present, responsible for around 25% of NOx and are on their way to being the biggest source of transport pollution in London by next year.

 

There are however plenty of options for taxi companies looking to expand their fleets in a more environmentally friendly way. Companies such as LEVC are pathing the way for greener taxi manufacturing. They join Nissan as one of the world’s few purpose built electric and hybrid taxi manufacturers.

 

Not only will switching to electric vehicles be better for our environment but there’s now more and more charging points being installed across the UK which is helping to reduce fuel costs.

 

If you’re part of a taxi or private hire company and are looking to the future, CAVA can assist. We have access to a range of funders who are experienced in finance for both Hybrid and Electric Vehicles. Contact us on 0161 222 9599 to discuss further.

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News

The cricket might be over for the season but Mike’s still getting his sporting fix. He recently travelled to Wentworth Golf Club in Surrey to spectate at the 5-day BMW PGA Tournament.

 

Wentworth is one of the most prestigious golf courses in the world, surrounded by mansions and with a rich history stemming from its founding in 1922.

 

Mike and his partner Jane attended the Pro-Am day which saw a host of the world’s top, pro golfers and a group of well-known sports people and celebrities take part.

 

None other than Ronan Keating had the honour of meeting CAVA’s finest when his golf ball rolled over to Mike’s feet. Ronan asked for the ball to be kicked back over to him and in true Mike Bailey fashion, Mike responded with “Play it from where it lands!”

 

The weather was glorious, and the surroundings were even better. Mike also enjoyed seeing the amateurs miss occasionally, as it gave him hope for his own future amateur golfing career…



Take a look at some of the famous faces below!

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News

Records released by highways England show that a huge number of breakdowns occurred in the financial year 2018/19. 224,225 breakdowns were recorded which sees an increase of a fifth in just two years.

 

Why are we seeing more breakdowns? Well, the average age of cars is increasing. Back in 2003 the average age of a vehicle was 6.8 years old, rising to 7.8 by 2015 and as of last year 8.2. As we know, with old age comes a few health implications!

 

Traffic volumes have been ruled out as a cause of increased breakdowns as figures have remained steady in recent years with minor increases, indicating that vehicle age is the root cause.

 

Figures were provided to Auto Express and they’ve reported that in the last two years breakdowns have increased by 14.8% compared to 2017/18.

 

Despite Highways England only being responsible for 2% of England’s roads, which amounts to 4,300 miles worth, a third of the country’s traffic is carried just on these roads.

 

In 2018, July and August were the busiest months for breakdowns as families headed on to summer getaways and weekend breaks.

 

CAVA agrees with the AA’s head of roads policy, Jack Cousens who says: “Breaking down on a motorway can be a frightening experience, so spending a few minutes before you set off checking your car over could make all the difference.”

 

This is further backed by the RAC’s Simon Williams; “These figures serve to highlight the importance of carrying out checks before setting off. A lot of breakdowns are entirely avoidable if drivers check oil and coolant are at the right levels, and ensure all tyres are inflated properly and have sufficient tread.”

 

Do you have any journeys planned over the coming months? Don’t forget to make simple checks before you set off to help prevent a breakdown. If you find you are breaking down, then perhaps it’s time to give CAVA a call on 0161 222 9599 and look at a new vehicle that can get you from A to B without the hassle?

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Coach, Minibus/Coach Finance

Cast your mind back a few years or so and hybrid and electric vehicles were still relatively uncommon. However, recent reports support the prediction that by 2040 electric vehicles will dominate the market. Bloomberg New Energy Finance estimates that more than 80% of sales of new buses and around 60% of sales of light commercial vehicles will be for electric options by 2040.

 

Even the iconic London double decker bus is going electric, with 100 electric buses joining fleets in the Capital from Chinese EV manufacturer BYD alongside the Optare Metrodecker buses which are in operation. This sees the UK further expanding it’s zero emissions public transport vehicles.

 

The shift in the market to electrification is progressing rapidly with operators such as National Express jumping on board and purchasing from busmakers ADL. There doesn’t seem to be any sign of the market slowing thanks to a combination of both public demand for cleaner and greener travel options and the increased productivity which EVs provide. 

 

The Department for Environment, Food & Rural Affairs have released figures highlighting that currently 13% of nitrogen dioxide levels in our environment are a result of buses, compared to 62% from cars and taxis.

 

Whilst emissions from buses and coaches are already lower, the public transport and service bus industry have an important role to play in providing cleaner travel options to reduce emissions and improve air quality.

 

With operators increasingly conscious of emissions charges and the environmental impact of their vehicles, it is refreshing to see this shift. It’s an interesting time for the automotive industry as a whole and CAVA is looking forward to assisting both existing and new clients in their electrical vehicle journeys.

 

If you’re considering a new vehicle and want to find out more about electrical options, please don’t hesitate to get in touch an I can introduce you to a trusted supplier and assist with finance requirements.



Our article is also featured in Bus & Coach Buyer in both print and digital format. Take a look here

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News

“UK car production declines for 12th month”

 

“Nissan confirms plan to cut 12,500 jobs globally”

 

“Brexit: UK car production plunges”

 

That’s just a snippet of the headlines we’ve all become far too familiar with over the last few months. This blog isn’t politically motivated but aims to discuss openly the proposed (and current) impact of Brexit uncertainty on the UK Vehicle production and finance industries.

 

Of course, for CAVA, if there’s a drop in vehicle production, we want to know about it as it will potentially impact our business too, in a ripple effect.

 

Where does the industry currently stand?

 

Well, May saw the 12th month of decline in the British car production industry with a drop of 15.5%. Production has dropped by around a fifth since the start of the year.

 

We’ve seen several major factories close or cut budgets and jobs, including Nissan who recently announced a cut of 12,500 jobs globally, with 7000 workers based in the car maker’s plant in Sunderland.

 

UK new car registrations declined in June by 4.9% and the reasons behind this have been linked by many reporting in the auto industry as being due to a lack of consumer confidence.

 

Now this doesn’t mean that people aren’t confident in the vehicles, but the economy. It could be seen as a risk to commit to a purchase of a new vehicle when the economy is in a state of flux. It is understandable that in a time of financial uncertainty that businesses and consumers are avoiding and delaying financial decisions such as a new vehicle.

 

What does the future hold?

 

We’ve already reported recently that the future is very bright for electric vehicles. Despite Brexit talk having dominated the news since 2016, yes it really has been that long, there is hope.

 

The last couple of years has seen upheaval for the automotive industry, relating back to our headlines above, but there’s also been a huge focus on the industry’s impact on the environment. New legislation relating to vehicle testing and regulations are due to come into force in 2021, with an aim to reduce the environmental impact that vehicles cause, with a crackdown on emissions in particular.

 

This relates back to a previous CAVA blog on the impact of emissions charges on taxis and the impact on the taxi industry, with a decline in registrations over the last few years, however growth is expected to resume by 2023.

 

With various articles flittering about regarding the state of the UK vehicle industry, it is refreshing to see that British talent is still up there, holding significant impact and influence in the industry. This is again highlighted by Mike Hawes, boss of the Society of Motor Manufacturers and Traders. He’s written to our recently appointed new prime minister to highlight the strength of the car industry.

 

Again this relates back to the electrification of our vehicles, noted by Hawes as a “dramatic and exciting change”


When discussing the impact of Brexit on the automotive industry, which contributes £18.6 billion to the UK economy, Hawes commented;



“The UK sector remains strong, with high levels of productivity, a skilled and flexible workforce and first-rate research and engineering facilities, so we are well placed to take advantage of the opportunities that emerge.” 

 

He did stress the need to “make the UK the most attractive destination for investors, creating an internationally competitive business environment and developing skills in new digital technologies”



“Above all, we must ensure the sector continues to enjoy – without interruption – preferential trade with critical markets around the world, including the EU.”



Would you look at purchasing a new vehicle in the current climate?

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