One of the most common complications in refrigerated vehicle finance is how lenders treat a vehicle where the cab/chassis and the refrigerated body are built by different manufacturers and potentially have different values and useful lives. This guide explains the two main approaches and how to navigate them.
The Body-on-Chassis Challenge
A typical refrigerated rigid HGV consists of three separate elements: the cab-and-chassis (e.g., a Mercedes-Benz Atego), the refrigerated body (built by a specialist body builder such as Gray & Adams, Montracon, or Lawrence David), and the refrigeration unit (typically Thermo King or Carrier). These may be purchased at different times, from different suppliers, at different prices.
Standard asset finance lenders often struggle with this because their valuation tools (CAP, Glass's) cover the chassis but not the body or refrigeration unit. Specialist lenders take a different approach.
Approach 1: Whole-Vehicle Combined Finance
The cleanest approach is to finance the entire built vehicle - chassis, body, and refrigeration unit - as a single asset under one facility. Several specialist lenders including Close Brothers and Shawbrook will do this. The key requirement is a single invoice or a build specification that covers all elements, usually issued by the body builder or vehicle dealer completing the build.
Advantages of combined whole-vehicle finance
- One application, one set of documentation, one monthly payment
- Finance amount reflects the full asset value including body and refrigeration unit
- Avoids complexity of separate facilities with different terms
- Typically results in lower overall cost than split funding
Approach 2: Split Finance - Chassis and Body Separately
Some buyers, particularly those purchasing from a dealer who sources the chassis and a separate body builder who fits the refrigeration body, end up with two invoices at different times. In this case, the chassis can be financed with one lender and the body and refrigeration unit with a second facility from a specialist asset finance lender.
This adds complexity but is sometimes the only option when the chassis is purchased before the body is completed and invoiced.
Financing the Refrigeration Unit Separately
Thermo King and Carrier refrigeration units range in price from approximately £8,000 for a basic van unit to over £25,000 for a top-spec trailer unit. Some lenders will finance the refrigeration unit as a standalone piece of equipment. This is useful when an existing vehicle needs a new or replacement unit, or when the unit is being upgraded independently of the vehicle.
Lender Appetite by Approach
| Lender | Combined Whole-Vehicle | Split Chassis+Body | Refrigeration Unit Only |
|---|---|---|---|
| Close Brothers | Yes | Yes (case by case) | Yes (£5k+) |
| Shawbrook | Yes | Yes | Yes |
| Aldermore | Yes | Limited | Case by case |
| Haydock | Yes | Limited | Limited |
| Lombard | Yes (min £25k) | Yes (min £25k) | Yes (min £25k) |