VEHICLE SPECIALISTS
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Manufacturers’ finance schemes have two advantages over other forms of finance. First, they specialise only in vehicles and it is in their interest to do a deal wherever possible. Second, by using manufacturer-led finance, you leave open the possibility of having separate credit extended by your bank or another lender for non-vehicle projects. However, they will still only finance deals if your credit score is sufficiently strong.
Paccar Financial, funded by Paccar, finances DAFs. It boasts that its credit rating is equal to LloydsTSB. Iveco Capital is a joint venture between Barclays and Iveco.
MAN Financial Services, Scania Financial Services, Volvo and Mercedes-Benz Charterway are all wholly owned by their respective parent group, while Renault Financial Services is part of the AB Volvo Group.
There are multiple asset-finance/vehicle providers each with their own strengths and focus. Close Asset Finance and Commercial Vehicle Solutions (CVS) are both (largely) owned by Close Brothers, one of Europe’s oldest merchant banks. Martin Collins, MD of CVS, says one of the advantages of specialist finance is its flexibility. “Some of our clients want to buy a mix of old and new vehicles, and then hire the remainder of the fleet,” he says. “We build a package for the customer based on what they need and want.” Hire companies were hit hard by the recession, with customers tying up fleets in long-term, hard-negotiated contracts. Spot hire pretty much died due to the lack of vehicles, and many boards froze cap-ex so rental fleets weren’t renewed. Rental vehicles have to be good for multiple commercial applications – and vanilla will always be cheapest and easiest to come by. It is worth looking at rental when you want the flexibility of a marginal vehicle without risk.
BRS specialises in contract hire without driver. It’s an autonomous company, but, as part of the Volvo Group, it has a special relationship with Renault. Ryder offers a wide range of rental and contract hire products, and is funded by its US parent company so continued to invest in its fleet throughout 2010.
Prohire is a contract hire specialist that says it offers transport expertise, no marque bias and, like other big fleet providers, its pricing can reflect economies of scale.
For trailers, it is worth checking out firms like Hireco and TIP Trailers Services.