Due to the pandemic, more people are opting for a staycation rather than travel abroad, resulting in a huge demand for campervans and motorhomes.
Arranging finance directly with the dealer is often seen as more convenient and hassle-free but there are other options available to help finance next year’s fleet.
We’ve put together some helpful pointers to consider when selecting the best finance option for your business requirements.
1. Hire Purchase v’s Leasing
Consider the end game first. How long will you keep the asset and do you plan to sell it? This will help determine the right type of agreement for your business model.
2. Seasonal payment options, deposit & payment terms
The size of deposit, VAT deferrals as a cash flow tool, supplier payment terms and aligning your payments towards your high season are all elements to discuss in advance.
3. Implications of ending a finance agreement early
Make informed decisions by ensuring you’re aware of the costs of terminating a finance facility early.
4. Permission to sub-hire
Make sure that your Finance Agreement includes a permission to sub-hire, ensuring it’s fit for purpose and satisfies insurance requirements.
5. Arranging finance independent from the dealer
Keeping control of your own payments and a settlement figure puts you in a stronger position to negotiate when it comes to trade-in time. The dealer has no knowledge of your financial position to leverage a deal in their favour.
Some helpful dos and don’ts:
Do
- Ask for independent advice on the above
- Interrogate proposed Payment Structures
- Make sure you understand Sub-Hire Clauses
Don’t
- Accept the first option presented as your only option
- Become tied to one funder
- Commit to an agreement that won’t work in the long run
Breadalbane has a strong track record of delivering tailored, flexible funding solutions to over 30 UK based campervan and motorhome businesses who have grown their fleet as a result of securing Asset Finance funding.
Contact us today to start a discussion and find out how we can help.
