This is a form of 'on balance sheet' funding. Interest rates are fixed for the term. Repayment periods usually range from 2-5 years. A deposit is sometimes required at the start of an agreement. Benefits Spreads the cost of buying as the vehicle's earnings pay for its acquisition.
Vehicle is shown as an asset on the balance sheet.
Operator can claim depreciation allowances. Interest element of repayments can be offset against taxable profits. If the mechanical componentry of your truck fails, it could damage more than just your fleet - your customers may be let down and your cashflow could also be hit. With your vehicles off the road your business will suffer. Fixed price repair and maintenance packages.