Financing a Second-Hand HGV
Buying a used HGV on finance is a cost-effective way to build a fleet without the premium of new. Many operators buy 2–5-year-old tractor units and rigids that have depreciated significantly from their new price but still have many years of working life remaining. Lenders understand used commercial vehicle markets and have specific criteria for aged stock.
Age Limits on Used HGV Finance
| Lender Type | Maximum Vehicle Age at End of Term | Notes |
|---|---|---|
| Mainstream (Lombard, Aldermore) | 10 years | Standard criterion |
| Close Brothers | 12–15 years | Case by case, higher deposit |
| United Trust Bank | 15+ years | Specialist, case by case |
| Specialist niche lenders | No fixed limit | Asset value and condition-based |
Rates on Used HGV Finance
Used HGV finance is typically priced 1–3% higher than new vehicle finance for the same profile, reflecting the higher residual value uncertainty and the slightly greater maintenance risk. An established business with clean credit financing a 3–5 year old tractor unit might pay 8–10% APR on HP, compared to 6.5–8.5% for a new equivalent.
Buying at Auction vs From a Dealer
Lenders treat vehicles from HGV dealers and auction houses differently. Dealer-sourced vehicles come with a degree of warranty protection and inspection. Auction purchases may require a higher deposit and more thorough lender inspection. Some lenders will not advance against vehicles bought at auction. Always clarify the source of the vehicle with your broker before proceeding.
Pre-Purchase Inspection
For used HGVs, a pre-purchase inspection by an independent engineer (cost typically £200–£500) is strongly recommended. Lenders may also commission their own valuation. A vehicle with hidden maintenance issues will cost far more in repairs than you saved on the purchase price. Inspect the service history, tachograph calibration records and MOT history carefully.