Van hire purchase: how a busy engineering director got his new van
Yes, a business can buy a new van on hire purchase with a VAT only deposit. A Highland based engineering director did it with our team. He came in on his way home from a job, and our team did the searching.
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Highland van finance case. In this video we are going to discuss this Highland van case. A busy Highland business needed a new van. The owner tried to sort the finance online first. It was stressful and hard to follow. It took time he did not have. Most offers he found would not leave his company owning the van. He came into our office on his way home from a job. We listened first. He wanted to own the van at the end. He did not want a big deposit. His old van had cost a lot in repairs. He gave his consent to go ahead. Our team took it from there. He came a couple of weeks before the September plate change. So there was time to search the options. We asked our panel for hire purchase, with a VAT only deposit. Hire purchase means you pay each month. Your business owns the van at the end. A lender said yes, and it matched every need. A new van on hire purchase, with a VAT only deposit. It runs for 60 months, to match the van's 5 year warranty. We offered to put off the VAT for up to 3 months. He chose to pay it at the start. The finance was paid out well before the delivery date. Lenders often want to see three months of business bank statements. Our page has eight free questions. Ask them before you sign online. Every business is different. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
A Highland based engineering business needed a new van. The owner tried to sort the finance online first. It was stressful and complicated, and it ate into time he did not have to spare. Worse, most of the offers he found would never have ended with his company owning the van.
Can I buy a van on hire purchase with a VAT only deposit?
Yes.
A business can buy a new van on hire purchase with a deposit of just the VAT. Hire purchase means you pay each month, and your business owns the van at the end. Many lenders treat a 10% deposit as normal, but it is not a rule. We can ask over 120 lenders.
What stood in the director's way?
The director was short of time. He is hands on, tools in hand. The search online was stressful and complicated, and ate into time he did not have to spare. He wanted a straightforward process and a clear answer.
How did we make it easy for him?
We started by listening. He came into our office on his way home from a job. Alana Mackenzie, our Business Development Director, listened first. His answers were clear.
- He had found the van he wanted: a new Maxus.
- He wanted to own it at the end, not hand it back.
- He did not want a big deposit. His old van had just cost a lot in repairs.
- He wanted none of the hassle he had met online.
Then he gave us his consent to go ahead, which lets us talk to lenders about his business. Our team took it from there.
What did our team take off him?
Our team took the searching and the asking off him. He came to us a couple of weeks before the September registration change. So time was on our side to search the options. Alana asked our panel for hire purchase, a VAT only deposit, and a payment the business could carry. An approval came back that matched every need.
We also offered to put off the VAT for up to 3 months. He chose to pay it at the start. Getting the supplier paid and the invoice processed was straightforward. The finance was paid out well before the 1 September delivery date set with the dealer. He got an answer, not a list of questions.
What did he get?
A new van on hire purchase, with a VAT only deposit, paid for before delivery day.
| The van | A new Maxus van |
|---|---|
| The finance | Hire purchase: his company owns it at the end |
| Deposit | The VAT only, not 10% |
| How long | 60 months, to match the Maxus 5 year warranty |
| The VAT | Could be put off up to 3 months. He chose to pay it at the start |
| Pay out | Well before the 1 September delivery date |
| Fee to apply | None |
Does the dealer need to arrange the finance?
No, a dealer does not need to arrange your finance. This van came from a van supplier. The finance came through us, and the supplier was paid. Most sellers will invoice a finance company. Get your finance in place before you talk price. Then the dealer must give you a cash price.
How are we paid?
The lender pays us a commission when the finance is placed. We tell you what it is before you sign. There is no fee to apply. Pull out before pay out and you owe us nothing, unless you agreed the rare inspection fee.
Who is Mackenzie Commercial Finance?
We arrange finance for businesses. We do not lend money. We can ask over 120 lenders. Limited companies can borrow from £15,000. Sole traders and small partnerships need over £25,000. £25,000 or less is regulated, and we arrange it only in the IV postcode area.
Our office is in Scotland, and we help businesses across the UK. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week, and answers questions.
Frequently asked questions
Can a small engineering business get van finance?
Yes. Any business can finance a van, not only the trades. A new business can get finance too, with a workable plan.
Do I need a 10% deposit?
No. Most lenders look for 5 to 10%, but finance with no deposit is possible. A VAT only deposit, as here, keeps cash in the business.
How fast is van finance?
Our team gets back to you within a day. Then the lender decides. Some say yes the same day. A hard case can take a few weeks. Come early, as this director did, and we can ask more lenders.
What will the lender want to see?
Three months of bank statements and your latest accounts. For a first agreement, ID for the directors. Limited company owners should expect a personal guarantee, a promise to pay if the company cannot.
We have left out the customer's name. This is general information, not financial advice.
