Mike Bailey, CAVA Finance 0161 222 9599
Coach, Commercial, Minibus/Coach Finance, News

Back in June 2019 we reported on the increasing popularity of electric and hybrid vehicles, with predictions that by 2040, electric vehicles will dominate the transport market.

 

With a combination of both environmental and cost benefits, EVs remain a growing trend and we’re seeing more and more companies exploring these options when looking to finance a new vehicle, from commercial vans to private hire, minibus and coaches.

 

We now have much more knowledge of the EV industry than we did a few years ago, with finance and insurance options becoming more easily accessible and our knowledge of finance viability increasing.

 

We’ve seen several large corporations pledge to ‘Go Green’ with their fleets, with companies such as Ford and Amazon pledging to embrace electric vehicles. Ford is releasing it’s all electric Ford E Transit for trial in various European markets this year, with the vehicle being available on mass next year.

 

Amazon have recently rolled out 20 electric delivery vans in Exeter as part of their pledge to be net zero carbon by 2040. This has allowed independent logistics companies who work with Amazon to benefit from access to these vehicles and doing their bit for the environment.

 

2020 was a record year for sales of both battery and plug-in hybrid vehicles, making up 1 in 10 vehicle registrations during 2020, compared to 1 in 30 during 2019, all despite an overall 30% decrease in new car sales following the impact of the pandemic.

 

During the last year, our buying habits have certainly changed, and we’ve seen trends in purchasing emerging such as an increase in demand for Motor Homes and a more conscious thought to our environment and lifestyles.

 

We once again spoke with Neil Cadd of Chadderton Motor Company to gain an update on his perspective of the direction of the EV industry.

 

“In the space of a few short months and whilst we have been under the COVID cloud, the EV world has perhaps come to the forefront of people’s thoughts perhaps a little sooner than would have been expected.

 

Many manufacturers are now releasing details of their EV products that we will see on the roads by the end of 2021 and many courier and delivery companies are taking this on board as they know they need to be seen using environmentally friendly vehicles and perhaps have a slightly different agenda from the local shopkeeper or tradesman when it comes to operating this type of vehicle.

 

The suitability of putting an EV on to your fleet isn’t for everyone, with the current payload and range issues mean that there isn’t an EV for every job and if that is the case then so be it but there will be in time.

 

The more ultra-low emission zones that are announced by towns and cities around the country will mean that businesses have to make the switch to EV but on the flip side running an EV in these areas will prove to be a cost saving over a traditional petrol or diesel vehicle, as is the case in London.

What we ask our customers and potential customers to sit and fully consider all the options when looking at an EV and to look further than the capital cost which can prove to be off putting especially with the larger vehicles. Whole life costs must be taken into account such as road fund licence, maintenance costs, fuel comparisons, grants, downtime when being serviced, congestion charges, residual values all need to be considered when thinking of making the switch.

 

One of, if not the biggest objection that comes from customers is range anxiety, however, this is in many cases a fallacy one customer of ours found his van “which he was out in all day” covered on average less than 80 miles a day so no need to be anxious about it and with over 450 charge points per month opening around the country this really isn’t an issue.

 

Finance companies are now coming to terms with these vehicles and more are offering options to customers through hire purchase, lease and contract hire schemes making them a sound choice once the prospective owner has done their homework properly, analysed their daily usage, and compared costs to realise that it would work for them but as I said before it isn’t for everyone…… yet!”

 

Our future has been front of mind and business owners who have been looking to expand their fleets are considering sustainability and longevity in addition to cost.

 

We’ve previously touched on the Government’s pledge to shift to zero emission cars and to create more desire around these options, company car drivers can benefit from zero or low tax rates as well as a 0% Benefit in Kind rate.

 

Fully electric cars which don’t produce CO2 have dropped from a BIK rate 16% to 0%, which could result in substantial savings for tax payers over the year. In addition, vehicles which produce higher emissions have had the BIK rate raised.

 

Benefits of EVs

 

– Low road tax

– Government Grants for charging ports

– Zero fuel costs

 

We’ve already seen a shift in the public and private hire transport market towards electrification, with operators such as National Express using EVs. Operators are increasingly aware of the environmental impact of their vehicles and it’s clear to see the demand for EVs isn’t slowing.

 

If you’re looking to expand your fleet, have you considered an electric vehicle?

 

With more changes and regulations coming into force in the next few years, we’ll likely see higher rates for more pollutant producing vehicles, meaning an EV or hybrid could be a more suitable long term investment in terms of running costs and benefits.

 

If you’re looking to expand your fleet and want to discuss sustainable, electrical transportation options, please get in touch and we can work with you and your finance requirements as well as introduce you to a trusted supplier.

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Coach, Commercial, Minibus/Coach Finance

If you head to the website of one of the larger vehicle finance companies (you know the kind you see those repetitive adverts for, on TV?) then the first thing you’re faced with is a finance calculator.

 

You might have noticed that we don’t have a finance calculator on our website. That’s not because our website isn’t as fancy or that we didn’t know how to create one. It’s because, whilst you might want a quick answer to see what you could realistically afford, it’s not as simple as punching in a few numbers on a computer.

 

We read an article recently which highlighted that the UK had seen a surge in demand for online finance. FICO, a software firm who conducted the research discovered some quite alarming figures. 50% of UK consumers considered just one lender during an online application for a car loan and a further 86% said they’d prefer to accept an instant loan offer to avoid the paperwork or having to deal with a lender.

 

We’re not trying to pull the wool over your eyes, if you work with CAVA there will be paperwork involved, there’s compliance to adhere to and of course we are working with you as our top priority. Whilst the figures above related to car finance specifically, it’s concerning to think of the amount of people who may have chosen a car deal out of ease, rather than because it was the best deal.

 

It’s even more worrying to think that if people are only considering one deal for their car, then the likelihood is they’re doing the same when it comes to vehicles used for their business. Figures from the British Vehicle Rental and Leasing Association have highlighted that company car and van fleet leasing has grown by 6.6% year on year.

 

So, there’s a clear demand for finance of vehicles used for business, which is what we specialise in, from taxis to coaches and commercial vans. CAVA have access to ‘whole of market’, working repeatedly with trusted lenders to secure the most reasonable deals possible for our clients, both new and returning.

 

We want to highlight that the reason we don’t shout about APR rates and how low your repayments could be, isn’t because we can’t compete with the big guns, but because we provide such a bespoke service. We enjoy getting to know our clients on a personal level, discovering more about their business and where it’s heading and offering our advice.

 

Aside from our own expert advice, stemming from Mike’s 35 years of experience in the finance industry, we are also able to put our customers in touch with trusted specialists such as David Fishwick Minibus Sales or Clive Knight Commercials.

 

Their advice is second to none, they can help you to find the most suitable vehicle for your requirements. Whether it’s a 17 seat luxury minbus or minicoach or a van with specific height and length requirements, they will assist in sourcing a vehicle. CAVA will do the rest!

 

Ultimately, we wanted to let you know that we’re not ignoring changes in the industry or the way people find finance, but we are, as we always have been, going to remain a customer focused company. That means we’ll take the time to find you the right deal, talk to you and possibly even meet with you, because you can’t put a price on that. 

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Commercial, News

Who CAVA works with: Clive Knight Commercials


Before LinkedIn had really kicked off, Mike Bailey was (and still is) a big fan of meeting people face to face. Whilst the internet has its place in creating business relationships, there’s nothing like a story of true persistence to compare.


Our relationship with Clive Knight Commercials began back in 2011. Mike was doing the rounds, knocking on doors at business parks and introducing himself. He called into Clive’s premises, which were in Sabden near Clitheroe at the time.

 

Business wasn’t immediate, but Mike continued to speak with Clive regularly and through consistent contact and determination, CAVA received the first referral from Clive Knight.


Since then, CAVA has received business on a regular basis. Clive simply informs his customers that he can refer the finance of their vehicle to a trusted partner. Mike receives the customer’s contact and vehicle details and from there arranges the finance.

 

Clive Knight Commercials is a well-established, family owned Commercial vehicle supplier. With over 40 years of experience they pride themselves on delivering quality and only buy vehicles from reputable sources.


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Hints & Tips, News
Let CAVA take the stress away from purchasing your next vehicle.

Whether it’s a detailed conversation you need or just a bit of guidance, Mike will ensure he provides the best advice possible.

At CAVA we see many customers opting for a late model, with low mileage, and affordable monthly re-payments. As a reputable broker, and with good working relationships with other suppliers, CAVA can do all the work for you.

Once CAVA understands the needs of the customer we can begin to find the right vehicle and at a competitive finance rate.

Mike will then complete all the necessary paperwork for you, so the only thing you have to do, dependent on the supplier, is come and collect your new vehicle!

Through our trusted suppliers CAVA can arrange delivery of the vehicle directly to you if required.

How can you help the finance process? It is worth having some form of criteria in mind when you are thinking of purchasing a vehicle through finance. Think about:

What is the vehicle needed for?
What type/size of vehicle is needed?
What is your monthly budget for re-payments?
Do you need a specific make, design or colour?

There’s a couple of documents you will need to provide before CAVA can go ahead and find you the best deal so be sure to have these available:

Our completed application form
Recent bank statements
Recent utility bill
Copy of your driving license

Whether it is finance for personal vehicles, coach/taxi finance, van or mini bus finance, CAVA can provide competitive finance rates for you. For more information contact Mike Bailey on 07736 549357 or via email: [email protected]
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Commercial, News

When it comes to running a business which relies heavily on transporting goods or machinery in order to complete your work, you need a reliable vehicle. 

Most traders use a Commercial Van for their work and whilst working long hours and performing a physically demanding job, they need the buying process to be as straightforward as possible. 

Having the right vehicle gives you the ability to expand. Larger van? More stock, equipment or machinery can be transported and thus widens the scope of the jobs that can be delivered. 


So where do you start with the buying process? 

We’ve created a short list for you to consider when looking for your next van purchase. 


Why do you need a van?

How large a van do you need?

Do you need any additions? Such as storage or ladder racks or even a built in sat nav system?

What is your budget for finance?

When are you looking to buy?

Once you’ve determined the purpose of the van and what type will suit your needs, consider the type of work you do. Long distance driving would be better suited to a medium/large van and also consider your colleagues, will you need to travel together, if so then you may need to opt for a 3 seater.


Now onto the extras!

What would make your job easier? Are you constantly having to unload your current van to find equipment buried at the back? Additional shelving and storage options, as well as opting for the right roof height could have a huge impact on your business. What about the doors? Will double doors work for you or would a sliding side door better suit your needs? Lastly, don’t forget to utilise all the space! Many vans can be fitted with roof racks for ladders or other equipment.

 

It’s time for the nitty gritty. It’s not as common for a van to be bought outright, it’s a huge investment. You need to consider whether a van is an investment to you or an expense. Finance gives you a flexibility, a suitable and affordable monthly outgoing which in turn improves your business.

 

We’ve had countless companies share their success stories, once they’d got a van for their business, most recently Wash4U Ltd shared their experience of how a new van improved their business. From companies which were then able to deliver more stock to customers, to those who were then able to increase the amount of work they could take on as they had an extra van to get to new jobs.

 

If you’re considering your next commercial van purchase then get in touch with Mike at CAVA Finance to discuss your needs.

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CAVA 17 (1) There are two changes a year when it comes to new registration plates, the first takes place in March and will show that your vehicle was produced in the first part of 2017. The second change comes into action in September, with vehicles donning a ’67 plate to represent that they have been produced in the latter part of the year, up to February 2018. It hasn’t always been this way! There used to be one change a year but in 2001 the DVLA introduced a new system which saw two changes a year. What is the registration of a car for? As you’ll probably know, the registration is used as a means of identification. The first four digits of your registration link to a certain area and the vehicle’s age. The second part of your registration is to keep things simple and prevent duplication, distinguishing your vehicle to others produced in the same area and year. If you are interested in purchasing or financing a new vehicle then it can be useful to know how the number plate is made up, so you can find out how old the vehicle is. For example, a vehicle purchased in the first part of 2017, from March to August will show 17 on the plate. From September 2017 to February 2018 the registration shows the current year + 50, so from September this year vehicles will show 67 on their registration plates.   Is it worth the wait? If you’re looking to finance or purchase a new vehicle and want the latest number plate then you could arrange this with the dealer, so the vehicle is yours but won’t be registered until after the new plates are released. Looking for a bargain? Age is but a number, if you are after a slightly cheaper deal then now might be the time to look into finance as dealers often discount ‘old’ stock before new plates are due to be released. CAVA has a low finance rate deal on until the 30th of April which you could take advantage of now! Why go for a new car now? Dealers will be offering high costs, CAVA will more than likely be able to offer you lower rate! Our low rate finance offer will be available until the 30th of April so there’s still some time to find the right vehicle for you. From the 1st of March this year, you could trade up to a nice new model or add an addition to your business and benefit from a lower rate. The offer will be available for both new and used cars as well as light commercial vehicles. CAVA can offer more competitive rates than motor dealers and bank finance options!
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