It’s fair to say that the Ford Transit is amongst the most important business assets in the UK. They are a mainstay for businesses of all sizes, from the smallest of sole traders through to the largest multinational firms.
Whilst commercial vehicle prices continue to rise, using finance is an increasingly popular way for businesses to access these assets without the large upfront payment. If you are looking to purchase a Ford Transit on finance for your business, here’s a guide with some key information:
Financing a Ford Transit through asset finance would involve the lender purchasing the vehicle, allowing your business to lease it from them for a set period of time.
Your options are vehicle asset finance, or a business contract hire. The two financial products vary in their implications and applications – here’s the differences to help you understand more:
Vehicle Asset Finance
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 in what you can 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
Aspects to consider
- The vehicle will remain the property of the lender unless purchased in full from them
- The application process may involve more paperwork compared to dealer finance
Using asset finance to buy a Ford Transit 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 fitted with a refrigeration system to transport food and beverages, and this will incur a significant additional cost over the purchase price of the Ford Transit – 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, otherwise known as business vehicle leasing, has similarities to personal car leasing in that you choose your deposit and 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 Transit will be returned to the leasing company (the lender).
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
Aspects to consider
- The ownership of the Ford Transit will remain with 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 construction company seeking a fleet of lightly used Ford Transits 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 use one new Ford Transit. 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.
Is the Ford Transit the right vehicle for your business?
The Ford Transit was introduced into the UK in 1998, and has been a regular sight on Britain’s roads ever since. The Ford Transit’s popularity often comes down to how similar to a normal car it drives and feels inside, as well as the high performance of models such as the Ford Transit Custom MS-RT.
These models are designed to meet a wide range of requirements, from urban deliveries to long-distance hauling and passenger transport. To learn more about how to finance these vehicles, get in touch with Mill Wood.
Ready to finance a Ford Transit for your business?
We are here to help with your commercial finance needs, including business vehicle asset finance.
