HGV training on finance: what it really costs
"From £1 deposit" and "spread the cost" offers are common in HGV training. Here's what the monthly payments add up to, what a representative APR means, and the protection you get if the course goes wrong.
Short answer
Most HGV training finance we've seen is arranged through retail lenders at a representative 29.9% APR. At that rate, borrowing £3,000 over 4 years costs about £102 a month and £4,892 in total: £1,892 more than paying up front. Over 1 year, the extra cost is £447.
What you'd repay at 29.9% APR
Monthly payment, and the total you'd pay back, for the amount you borrow.
| Borrow | 12 months | 24 months | 36 months | 48 months |
|---|---|---|---|---|
| £1,000 | £96 a month£1,149 in total | £54 a month£1,298 in total | £41 a month£1,459 in total | £34 a month£1,631 in total |
| £2,000 | £191 a month£2,298 in total | £108 a month£2,597 in total | £81 a month£2,918 in total | £68 a month£3,261 in total |
| £3,000 | £287 a month£3,447 in total | £162 a month£3,895 in total | £122 a month£4,377 in total | £102 a month£4,892 in total |
What "representative APR" means
A representative APR is the rate at least half the people accepted get. Up to half can be offered a higher rate, depending on their credit history. Ask for the APR you'll actually pay, the monthly payment and the total amount payable, in writing, before you sign.
Where you'll see finance offered
- National HGV training companies and brokers often lead with finance. One advertises "only a £1 deposit upfront", with Snap Finance at 29.9% APR over up to 48 months, while publishing no course prices.
- Some Kent schools offer finance as an option alongside a published price, which lets you work out the real cost before you apply.
A low deposit says nothing about the price of the course. Compare the full price and the cab hours first. Kent prices, like for like.
If the course goes wrong
When a training company arranges the loan through its lender, the lender can be jointly liable under Section 75 of the Consumer Credit Act for a misrepresentation or breach of contract by the training company, in the same way as a credit card. That covers credit agreements made under arrangements between the lender and the seller, for purchases over £100 and up to £30,000. If the lender refuses your claim, you can take it to the Financial Ombudsman Service. Your refund rights.
Before you sign a finance agreement
- Get the course price, the cab hours and what's included in writing first, separately from the finance.
- Ask for the APR you'll pay, the monthly payment, the term and the total amount payable.
- Ask what happens to the loan if you can't get your medical or provisional licence, or the course is cancelled.
- Check whether you can pay the loan off early, and what that costs.
- Work out whether a shorter term, a bigger deposit, or saving for a few months would cost less.
- Ask employers whether they fund training. Some do, and that's the cheapest finance there is. Funded training in Kent.
Common questions
Can I get HGV training on finance?
Yes. Many training companies offer finance through retail lenders, often at a representative 29.9% APR over up to 4 years. Approval depends on your credit history.
How much does HGV training cost on finance?
At 29.9% APR, borrowing £3,000 over 48 months costs about £101.91 a month and £4,892 in total, about £1,892 more than paying up front.
What does a £1 deposit HGV course mean?
Only that the first payment is small. The rest is a loan, with interest. Check the full course price, the APR you'll be offered and the total amount payable before you sign.
Am I protected if I pay for HGV training with finance?
If the training company arranged the loan through its lender, Section 75 of the Consumer Credit Act can make the lender jointly liable if the company breaks the contract, for purchases over £100 and up to £30,000.