If there is one brand known for its commercial vehicles, it is Ford. The famous Transit has been the backbone of British businesses for generations, and now the Ford Ranger stands shoulder-to-shoulder with its van counterpart as an essential tool for many businesses. If you are looking to buy a Ford Ranger on finance for your business, here are the different options available.
Buying through asset finance
Asset finance is a commonly used type of commercial finance for UK businesses. It is commonly used by businesses to buy assets without needing large up front costs, freeing up cash flow for other purposes.
Financing a Ford Ranger through asset finance would involve the lender purchasing the vehicle, with you leasing it from them for a set period of time.
The advantages of asset finance for vehicles include:
- No need for a large upfront investment, freeing up funds to use elsewhere
- Lease payments are often tax deductible, although make sure to check with your accountant
- There is flexibility of what to do with the vehicle at the end of the lease
- Asset finance agreements are amongst the most flexible in terms of customising terms
- Ideal for either purchasing a fleet of vehicles or used vehicles that don’t have dealer finance offers
Potential pitfalls
- The vehicle will remain the property of the lender unless purchased in full off them
- There is no resale value of the asset
- The application process may involve more paperwork compared to dealer finance
Using asset finance to buy a Ford Ranger for your business could represent the most suitable avenue, especially if you are looking to purchase a fleet or to upgrade or modify the vehicle for a specific purpose. For example, if you require the vehicle to be kitted out for a specific purpose, and this will represent a significant extra cost over the purchase price of the Ford Ranger, an asset finance application could be best suited for you. Speak to one of our team to discuss your options.
Business Contract Hire
Business contract hire, sometimes known as business car leasing, has similarities to personal car leasing in that you choose your deposit, mileage and will pay a fixed monthly repayment over a set period of time. The lease will be under your company’s name, and at the end of the business lease the Ford Ranger will be returned to the leasing company.
Advantages of business contract hire
- No need to worry about depreciation as you do not own the asset
- Low upfront costs
- If used solely for business use, the monthly payments are tax-deductible
- The relatively short lease terms (often between two to five years) allows for regular upgrades to your fleet
- Fixed costs are easy to budget and forecast for
- Deals are easy to find and apply for online
Potential pitfalls
- The Ford Ranger will remain owned by the leasing company
- There are mileage restrictions that can become costly if exceeded
- Early termination fees can be expensive if you want to exit your contract early
Which is right for your business?
By business, we are referring to:
- Sole traders
- Limited companies
- VAT registered companies
- Partnerships
- Public listed companies
- Charities
To finance a Ford Ranger for your business, either Asset Finance or Business Contract Hire are likely to be suitable options. Both options reduce the upfront costs required to purchase the vehicle, but do have subtle differences that might affect which financing option is best for your business.
Choose asset finance if:
Asset finance applications using a commercial finance broker will give you more flexibility, whether it be for choosing the repayment terms, deposit level, age of the vehicle, how many vehicles you need or the amount of funds needed to modify the vehicle for your specific business needs.
For example, a small plumbing company seeking a fleet of lightly used Ford Rangers would likely find asset finance their most suitable finance option.
If you want to explore asset finance for your business vehicles, contact one of our team to get started.
Choose business contract hire if:
You are looking for the most straightforward process to purchase one new Ford Ranger. You will benefit from a simple, online application process and it is easy to compare deals online using tools such as Lease Loco. You will have set monthly repayments.
Ready to finance a Ford Ranger for your business?
We are here to help with all of your commercial finance needs, including business vehicle asset finance.
