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Let’s know about Fleet Vehicle Finance in UAE

Using Element's fleet car finance, you can increase your cash flow while decreasing your costs.

When it comes time to buy or lease work vehicles, you want flexible, cost-effective financing that makes sense for your company. At Element, we use our financial expertise and strength to make fleet leasing and financing options as simple, uncomplicated, and cost-effective as possible.

Features and Benefits of Fleet Vehicle Finance in UAE

The following are the features and benefits of commercial fleet vehicle financing in the UAE-

  • Flexible financing programme for all new car fleet purposes.
  • Finance for automobiles, whether a single vehicle or a whole fleet.
  • Finance for large trucks and machinery is available.
  • Finance limitations of up to AED 2Mio are available.
  • Fees for processing are 1% of the permitted fleet limit.
  • Low processing costs and a competitive financing rate.
  • There is an Islamic Murabaha fleet finance option available.

Eligibility Criteria for Obtaining Fleet Vehicle Finance in UAE

The following are the eligibility requirements for obtaining Fleet Vehicle Finance in the UAE

  • Legally registered business entities in the UAE (sole proprietorships, partnerships, and limited liability corporations) that run car fleets
  • Businesses that have been in operation for at least one year and have an annual sales turnover of AED 1,000,000 or more are eligible. 
  • Applicants must have a minimum of two years in business in the UAE and a successful financial history.
  • All automobiles that are to be financed must be brand new (first registration)
  • All funded automobiles must be covered by comprehensive insurance, with CBD named as the beneficiary.

Types of Fleet Vehicles in UAE

These are the following types of  Fleet Vehicle which is in UAE- 

  • Light Transport Vehicle (LTV)
  • Heavy Transport Vehicle (HTV)
  • Medium Commercial Vehicles (MCV)
  • Heavy Commercial Vehicles (HCV)
  • Light Earth Moving Machinery (LEM)
  • Medium Earth Moving Machinery (MEM)
  • Heavy Earth Moving Machinery (HEM)

What types of Equipment and Vehicle Financing Alternatives are Available in the UAE for SMEs?

Commercial equipment and vehicle finance loans assist small and medium-sized businesses in funding the purchase of industrial equipment, machinery, construction equipment, or commercial vehicles. Hospitals and clinics can also get funding to buy medical equipment. Car rental companies who need to purchase a significant number of vehicles to develop a fleet can also obtain a loan designed specifically for this purpose.

Small and medium-sized businesses (SMEs) can finance the purchase of certain vehicles with specially designed business loans

Commercial Vehicles

Light, medium, and heavy commercial vehicles, such as trucks, buses, trailers, multi-utility vehicles, and pick-up trucks.

Construction vehicles

 Vehicles and equipment that are used on construction sites, such as bulldozers, excavators, and cranes.

Passenger vehicles 

New and used cars and other passenger vehicles, particularly for fleet financing.

Required Documents for applying Fleet Vehicle Finance

The following documents are necessary for applying for Fleet Vehicle Finance

  • All signing authorities and stockholders, if applicable, must have a national ID or a valid passport with a UAE residency visa and an Emirates ID.
  • Valid legal and constitutive papers (e.g., a trade licence, a certificate of commercial registration, a free zone certificate of incorporation, a memorandum of association, and a partnership agreement), as applicable
  • If necessary, obtain a Power of Attorney or a Board Resolution.
  • Proof of Address, Details of Ultimate Beneficial Owners, Bank Reference Letter, and, if appropriate, Company Profile
  • Financial statements must not be audited.
  • Bank statements for the past 12 months
  • For the purchase of a new vehicle, the dealer will provide a pro forma invoice.
  • Applicants' cash flow projections for vehicle purchases that generate revenue

Is it a Good Idea to Invest in a Fleet Vehicle?

Before determining whether or not to purchase a fleet vehicle, consider both fleet purchasing and fleet leasing. Some businesses opt to buy outright, which requires a bigger initial investment but no monthly fees. However, this would necessitate a significant capital outlay, and it should be remembered that vehicles depreciate rapidly. If your company has been in operation for a longer period of time and has a lump sum available, acquiring may be more appealing.

When it comes to fleet leasing, this type of agreement allows you to select the vehicles you need for your fleet and then simply pay a monthly bill. Vehicle maintenance is usually covered, so as a business, you have fewer things to worry about or monitor.

Reasons to Acquire a Fleet Vehicle

The reasons for purchasing a fleet car can differ depending on the type of business you own. Perhaps you need to make deliveries, travel to see clients on a regular basis, or supply business vehicles to management. Employees of higher calibre can be attracted by providing them with a high-spec luxury vehicle. It is relatively simple to lease a fleet of cars or vans. If you buy or lease more than 10 vehicles, you are considered a commercial fleet, and you may be eligible for numerous manufacturer discounts. If this is your first fleet purchase, always check with your vehicle provider to see what kind of service they can offer.

Conclusion

The Fleet Vehicle Financing Program offers businesses flexible and cheap financing for passenger transportation, bus rentals, car and vehicle rentals, tourism operations, and any other commercial operation that involves a revenue-generating fleet of vehicles. Apply for Commercial Fleet Vehicle Finance at Dhanguard to simplify your cash flow statement and avoid decreasing your company's reserve resources.

Frequently Asked Questions

A Fleet Vehicle Management company is basically a company that generally owns a huge fleet of cars and then leases the vehicles back to the customers. These companies regularly aim bigger corporations that generally requires a large fleet that can be 15 to multiple thousands of cars, trucks, or vans for their business activity to flourish.

The time limit set for repayment of the vehicle finance is 48 months.

To apply for Fleet Vehicle Finance, contact our team of experts at Dhanguard for more information.

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