Vehicle finance recommendations

[bigtreedon]

Dont be scared of finance I was for years and ran unreliable vehicles that must of cost me years of my life in stress not to mention excessive spending on repairs renting stand in vehicles wen mine were out of action I just didnt want to have the payments every month but now driving brand new is so worth it just get in it and go to work and concentrate your energy on making money instead if your vehicle is gunner let u down transport is to important in our industry to not see it as the primary spend forget all the other toys if u cant get to the trees there useless!

[Rough Hewn]

Dont be scared of finance I was for years and ran unreliable vehicles that must of cost me years of my life in stress not to mention excessive spending on repairs renting stand in vehicles wen mine were out of action I just didnt want to have the payments every month but now driving brand new is so worth it just get in it and go to work and concentrate your energy on making money instead if your vehicle is gunner let u down transport is to important in our industry to not see it as the primary spend forget all the other toys if u cant get to the trees there useless!

Spot on mate.
Had a chat with a finance guy today.
Sounds reasonable.
[emoji106]

[doobin]

How far do you travel? I’ve always found it better to have multiple older vehicles, and save the finance and income for brand new machines that earn the money. I have four old

vehicles, but three pretty new diggers. A truck is just a truck to me, but I am handy at keeping them going. 
 

my 57 plate ranger passed it’s mot today. Cost me 4K four years ago, still gotta be worth 2.5 to 3k. Had to do a clutch, but I do tow a lot.

[benedmonds]

2 hours ago, bigtreedon said:

Dont be scared of finance..

Conversely, buying new or leasing means you waste a huge amount of cash on depreciation. I agree you need a reliable vehicle but a new truck will not earn you any more money then an old reliable one.

 

New trucks do breakdown and still need to be maintained. I can't imagine leasing would work in our industry as the abuse they get means that you are going to get shafted when you return it.

 

My advice buy as good as you can. My preference would be an ex lease vehicles. Often looked after and the worst of depreciation gone..

 

[bankhouse builder]

Ive just gone down the finance route always had 3 year old vehicles and paid cash last one has done me 10 years but after 1st year of owning it had to put new short engine in 3k bill . So been looking this timeat both 3 year old and new gone for new Nissan cabstar 5 year warranty the minimum you have to pay is 10% plus all of the vat gone with Lloyds asset financing and got 3% flat rate over 3 years. However Isuzu were offering 2.19% if paid over 3 years or 2.79% over 4 so for around £120 a week for the next 3 years Ive got a new truck and its not swallowed up all my working capital.

[doobin]

7 hours ago, bankhouse builder said:

Ive just gone down the finance route always had 3 year old vehicles and paid cash last one has done me 10 years but after 1st year of owning it had to put new short engine in 3k bill . So been looking this timeat both 3 year old and new gone for new Nissan cabstar 5 year warranty the minimum you have to pay is 10% plus all of the vat gone with Lloyds asset financing and got 3% flat rate over 3 years. However Isuzu were offering 2.19% if paid over 3 years or 2.79% over 4 so for around £120 a week for the next 3 years Ive got a new truck and its not swallowed up all my working capital.

That’s how I look at diggers, and it works for me too. I just don’t travel far enough or have enough need for one specific type of vehicle to do this with a truck. I’d also be careful of advising someone just starting out to commit that much on a vehicle, rather than a machine such as a digger that earns its own money. Yes you need a truck, but it just gets you from a to b. It doesn’t earn you extra money once there.

[doobin]

11 hours ago, Rough Hewn said:

Spot on mate.
Had a chat with a finance guy today.
Sounds reasonable.

It will always sound reasonable until they give you the proper quote. ‘Representative apr’ is bullshit and just to sucker you in. 
 

it also always sounds reasonable (I imagine) until you miss a payment or two. 
 

Generally speaking, finance is cheap/subsidised on new plant that manufacturers wish to sell. This also doesn’t depreciate nearly so fast. Asset finance on a second hand vehicle is a money spinner for the finance company, and as the asset devalues faster than plant they charge more as there is more risk for them. 

Edited November 5, 2019 by doobin

[Rough Hewn]

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[emoji23])
I've got a transit tipper, it's just I get quite a few jobs where a 4x4 is essential.

[doobin]

No offence mate, but that’s bottom of the market. No finance company will be interested. Try your bank for a loan? 

[Rough Hewn]

No offence mate, but that’s bottom of the market. No finance company will be interested. Try your bank for a loan? 

No offence taken bud, I'm under no illusions. That's why I'm looking at vehicles 5-6k now.
Still very hesitant, not familiar with the jargon either.
[emoji106]