HGV Finance Options

At ACF Direct, we have a long history of association with the haulage industry and specifically in providing HGV finance solutions.

Over time, we have obtained an in-depth understanding of the challenges and opportunities that exist within this industry. That means we can speak with extensive knowledge about the routes that might be open to you if you are looking to finance a new HGV or indeed several such vehicles.

We’ll discuss some of those below.

Operating Lease

For many hauliers, this is one of the simplest methods of gaining access to the vehicle or vehicles you need. It is, essentially, very close in principle to a rental agreement.

Basically, you will identify the vehicle or vehicles you need to a potential provider of funds. They will review certain parameters of your application, typically including a credit check. If they are comfortable with the results, they will purchase the vehicle concerned.

They will then agree a lease with you which will permit you to use the vehicle in return for a set monthly repayment. Typically, they will not spread the entire value of the vehicle across the period of your operating lease. That means that your monthly repayments won’t need to add up to the total cost of the vehicle plus interest charges.

For that reason, this may be one of the lowest-cost options available in terms of monthly repayments. On the downside, it’s worth keeping in mind that this means you will never legally own the vehicle.

Your monthly repayments will be taken in your profit and loss accounting as a legitimate business expense.

Finance Lease

In terms of the assessment of your application, the same basic approaches will typically be adopted as those outlined above. A finance lease though is very different to an operating lease.

The funds provider will purchase a vehicle, then typically divide the entire cost over the period of the lease they agree with you. This means that your monthly costs might typically be a little higher than is the case with an operating lease.

In this situation, the item can be added to your asset register and balance sheet.

At the end of the finance lease you have three options:

  • enter into a peppercorn rental and continue using the goods. Generally this is one months rental payable annually;
  • sell the goods to a third party and retain typically 95% of the Net Sales Proceeds;
  • return the vehicles.

Hire Purchase

This method of HGV finance should need no introduction!

The provider of funds will purchase the vehicle and make it available for your use on the basis of you being the “registered keeper”. You will then pay them a monthly amount over an agreed period of time, until the total purchase price plus interest is paid off.

This means that, with a few exceptions, you will be able to use the HGV as your own. One of those exceptions is particularly important though and it means you cannot sell or dispose of the vehicle concerned without the owner’s prior permission.

Once you make your final monthly repayment, the legal ownership of the vehicle will move to you and you will be able to dispose of it or otherwise, as you think fit.

Once again, you may need to meet many of the approval criteria touched on under the leasing options. You will also typically need to find an agreed percentage of the total price by way of a “deposit” from your own finances.

Asset Re-finance

In some cases, it may be possible to free up equity that you have in an existing asset such as property or perhaps another vehicle.

That can then be used to purchase your new vehicle.


There is no one-size-fits-all solution to HGV finance. A lot will depend upon your requirements and your exact business position.

We would be grateful for the opportunity to discuss your individual position with you in more detail.