If you're buying an articulated tractor unit and trailer at the same time, one of the first questions is whether to finance them as a single bundled facility or as two separate finance arrangements. There is no universally right answer - both approaches have legitimate use cases and the better option depends on your specific circumstances.
Bundled Finance - Single Facility for Tractor and Trailer
A bundled facility finances the tractor unit and trailer under a single agreement at a single rate and term. This simplifies administration and can sometimes achieve a marginally better blended rate than two separate facilities. It works best when both assets are new, from the same or related dealers, and you want the same term on both.
Best for bundled finance
- New tractor and new trailer purchased at the same time
- Both from the same dealer or connected supplier group
- You want a single monthly payment and clean accounts
- Total facility value is large enough to interest prime lenders (£60k+)
Split Finance - Separate Facilities for Tractor and Trailer
Separate facilities allow each asset to be treated individually. This is useful when the tractor and trailer have different ages, conditions, or useful lives. A new tractor might warrant a 5-year term; a 3-year-old trailer might be better financed over 3 years. Split finance also allows you to use different lenders - for example, the manufacturer's finance arm on the tractor (if they offer a promotional rate) and a broker-sourced facility on the trailer.
Lender Appetite by Approach
| Lender | Bundle Appetite | Split Appetite | Min Facility |
|---|---|---|---|
| Close Brothers | Yes | Yes - both elements | £5,000 per asset |
| Lombard | Yes | Yes - separate applications | £25,000 combined |
| Shawbrook | Yes | Yes - both elements | £10,000 per asset |
| Aldermore | Limited | Yes - both elements | £5,000 per asset |
Worked Example: New DAF XF Tractor + New Schmitz S.CS Curtainsider
DAF XF tractor unit: £120,000 Schmitz S.CS curtainsider: £45,000 Total: £165,000
Option A - Bundled (Close Brothers, 5.5% APR, 5 years): approx. £3,170/month single payment
Option B - Split (DAF Financial on tractor at 5%, Close Brothers on trailer at 6%): tractor approx. £2,265/month + trailer approx. £870/month = £3,135/month. Marginally cheaper on blended rate; two payments to manage.