Financial Services

When it’s time to finance your next new DAF truck, you can count on PACCAR Financial to help make it possible. As the in-house finance company of DAF Trucks, PACCAR Finance have been supporting truck owners for years with innovative finance and lease products.

Through PACCAR Finance we can offer you a broad range of options from finance lease to hire purchase, but since we are well known for our tailor-made solutions, we prefer to discuss in detail your individual needs.

Operational Lease

PACCAR Financial will purchase the vehicle of your choice, for your use for the duration of your Operating Lease contract with us. However, because of a Residual Value (RV) figure in the transaction, your monthly payment can be significantly reduced. Each contract is tailor made to the specific requirements of the customer and the operating conditions of the vehicle, with structured payment profiles available to assist your cash flow. The rental payments can normally be offset against taxable profit and with VAT being paid on the rental payments and not the purchase price of the truck it further aids your cash flow. Therefore with the risk in the Residual Value of the vehicle staying with PACCAR Financial you can enjoy the use of the vehicle without the burden of ownership – all for a low initial capital outlay and fixed monthly rentals.

Financial Lease

By choosing a fixed rate Finance Lease contract you can hire a DAF truck for a fixed period of time without the burden of a large up front VAT payment. The fixed monthly rentals give peace of mind and can help to improve your cash flow. Subject to credit approval, we can offer a wide range of flexible payment options including structured or seasonal rental schedules and balloon payments. Opting for a final balloon payment can substantially reduce your monthly rentals.

As Lessor, PACCAR Financial owns the vehicle and when all rentals have been paid you can extend the use of the vehicle on a year by year basis on payment of a nominal, upfront, annual rental. Alternatively the vehicle can be sold with a major part of the net sale proceeds being refunded to you by way of a rebate of your rentals. Finance lease can also be beneficial from a tax point of view, and you should discuss what is best for your individual circumstances with your accountant.

Hire Purchase

Enjoy the balance sheet benefits of economic ownership of the vehicle. You can also choose between a fixed or variable interest rate, whichever suits your business. When all payments have been made, you own the vehicle. Full VAT is payable with the initial deposit payment.

Main characteristics of hire purchase

  • The vehicle is treated as “on balance sheet”
  • PACCAR Financial has legal title to the vehicle until all instalments and final option fee have been paid, after which the customer takes final ownership.
  • Choice of fixed or variable interest rate
  • Fixed monthly payments throughout can include seasonal payment schedules or even a balloon payment at the end of the contract, to lower the monthly costs.

DAF Hireplus

PACCAR Financial offers Operating Lease bundled with a DAF Trucks Repair and Maintenance(R&M) Agreement through its HirePlus product. R&M charges are included within the monthly rental payments, spreading the cost evenly throughout the term. This allows you to remove depreciating assets from your balance sheet and reduces the financial risks of owning and maintaining vehicles.

Main characteristics of DAF HirePlus:

  • Rental agreement with a fixed duration and total kilometres
  • Monthly rental payments including R & M charges and VAT
  • Total monthly payments can be offset against taxable profits
  • Ownership is with PACCAR Financial
  • Vehicle will be written down to a residual value (RV)
  • At the end of the agreement you just give the vehicle back as per certain return conditions or request an extension if you wish to continue to use the vehicle

Contract Hire

All the benefits of Hire Purchase but with lower scheduled payment values and greater flexibility at the end of the contract. The key is a Guaranteed Future Value (FV) provision of the final balloon payment. The choice is yours, to either pay the balloon to take ownership of the truck, or return the vehicle to us and subject to certain return conditions, walk away owing nothing more

Main Characteristics of Contract Purchase

  • The vehicle is treated as “on balance sheet”
  • Guaranteed Future Value (FV) provision in place
  • PACCAR Financial has legal title to the vehicle until all instalments have been paid together with payment of a “balloon” (the FV) at the end of the contract, after which the customer can take final ownership
  • Full VAT amount payable at the outset