Vehicle finance recommendations

[doobin]

6 hours ago, Rough Hewn said:

What I'd really like is just to borrow about 1.5-2k, I can add a grand to get a cheap 4x4 which will last 2-3 years. £2.5-£3k?

A brand new is not an option yet. Couldn't afford £4-500 a month.
Yet.

Doobin, you're right about machinery,
(I started 12 years ago though with a wheel barrow and an 021)
I've got a transit tipper, it's just I get quite a few jobs where a 4x4 is essential.

That's the same as me- 12 years ago, and the 023 was borrowed!

 

If you already have a transit tipper, then cross your fingers and spend 2.5k on a Ford Ranger or similar. Yes, you'll have repair bills, but hopefully you'll get lucky. I've never spent more than 4k on a vehicle, as I prefer to have multiples for backup and brand new tools instead.

[scbk]

Horses for courses innit, one of my current run a rounds cost less to buy than the Husqvarna battery!

Edited November 5, 2019 by scbk

[Jonny69]

One very important factor is tax. You can claim a lump of capital allowance with a new or expensive van which in my experience will negate any deprecation and them some. But it will depend on which tax bracket you are in. The more you earn, the more benefit from an expensive van. 

[doobin]

19 minutes ago, sanchez060 said:

Blah, well, it definitely remembers me a time, half a year ago, when we were trying to find finances and some investments for buying two heavy machinery from Caterpillar, for our forestry business.

Oh, you simply must tell us who you used!

[LeeGray]

RH just pick up an old v8 Range Rover for a grand and if it goes wrong scrap it and get half your money back! Tow 3.5t and mine goes places my defender wouldn’t.

 

i assumed I’d be scrapping mine within a year, it’s now nearly three years and about 40,000 miles heavy towing in and still not gone wrong. Cheapest and best work vehicle I’ve ever owned.

[Matthew Storrs]

On 03/11/2019 at 16:24, Big J said:

A new Navara/L200/Hilux etc will only work out at a monthly payment of about £350/month plus VAT over 5 years and it's yours at the end. That's less than £100/week and when you factor in the much better fuel economy, zero repair costs (most offer a 5 year warranty) and a large reduction in down time, that cost is well worth it.

 

Just fuel economy is a big one. A modern Narava for instance (NP300 I think is the designation) does 10mpg more than it's predecessor (the D40). On 25k per annum, that's a fuel saving of £1400, which is a third of your annual finance cost.

 

And then downtime. Lets assume your billing out at £150-200 a day. If you lose 3 days per annum with an old truck to repairs, you're doing well, but that's over £500 lost. Plus actual repair bills.

 

If it's your daily driver, I'd always recommend going new unless you have a back up vehicle. You always lose money with vehicles - with new it's depreciation, with old it's down time and repairs. I find the former to be less annoying.

Yes yes yes, this is what I’m always saying (although havnt actually implemented myself yet!) but it’s the downtime for repairs that’s the killer. Finance you know is happening and can plan for but the broken down truck just results in letting other people down as well as your self and generally happens at 6pm on the way home from work leaving little time to sort anything out fit the next day. It’s not so bad if your running multiple vehicles though and always have something to at least tide you over.

i use a company called ignition finance in Truro. Good to deal with and they will fund smaller (Under £5k for eg ) purchases themselves. Don’t forget no MOT for first 3 years (?) on new stuff so another fairly considerable saving 

[Matthew Storrs]

On 05/11/2019 at 14:52, doobin said:

That's the same as me- 12 years ago, and the 023 was borrowed!

 

If you already have a transit tipper, then cross your fingers and spend 2.5k on a Ford Ranger or similar. Yes, you'll have repair bills, but hopefully you'll get lucky. I've never spent more than 4k on a vehicle, as I prefer to have multiples for backup and brand new tools instead.

It’s a good way of doing it. By having multiple vehicles you can always have the right vehicle for the right job. Rough- have you looked at the Jeep Grand Cherokee, 3l merc engine- bags of power, 3.5t towing and can be found tidy for around £3k. Or does it have to be a pickup?

[donnk]

1 hour ago, Big J said:

As you say, it's the fixed cost that is attractive. I think my Berlingo is £490/month, but that's on a 3 year term, at which point it'll be mine to sell. Which I will do as it'll have 50-60k on the clock, be out of warranty and be requiring MOTs.

maybe been better off not tieing up the cash and contract hiring.

[GA Groundcare]

1 hour ago, LeeGray said:

RH just pick up an old v8 Range Rover for a grand 

Not these days! RRC seem to of gone up lately. If you can find a road worthy not rotten example for 1k let me know! ?

 

3dr classics are mental prices now.

 

When starting up 5 years ago I bought a 2002 Disco 2 TD5 Commercial for 2k. It was spot on. 

[Rough Hewn]

As you say, it's the fixed cost that is attractive. I think my Berlingo is £490/month, but that's on a 3 year term, at which point it'll be mine to sell. Which I will do as it'll have 50-60k on the clock, be out of warranty and be requiring MOTs. In the mean time, I don't have to worry about any of that. Even the services are fixed at £100 each (but rolled into the finance). 
 
On the flip side, my older vehicle (the 2012 4x4 Sprinter) has cost me at least as much in repairs/upgrades over the past 18 months as the Berlingo has in finance and I've not built any equity and there has been downtime which has been a PITA.
 
If you can justify or afford two trucks, I'd always recommend a small works van for a primary vehicle as you can carry loads in the back, they have spacious cabs and do 50+mpg. Then an older vehicle for towing as required. That's obviously not going to work for someone needing to tow every day, but those little vans are good fun to drive.

I've got an old vw golf, for family/subbing/quoting and the transit crew can tipper is back on the road.[emoji16]
Yes it's fun nipping about in the golf, and very cheap. But the transit is the work horse.
New is a great idea, but my work wouldn't justify it.[emoji51]