Golf buggy finance: funding a new or used buggy fleet

Buggy hire can be a useful source of income for a golf club, and many golfers expect buggies to be available. A fleet is a large outlay, though, and buggies wear out and need replacing on a cycle. Financing the fleet spreads the cost over the years the buggies earn their keep, keeps reserves free for the course and clubhouse, and lets a club replace buggies in batches rather than all at once.

Buggy hire income is strongest in the summer. Some asset finance lenders can set payments around a seasonal pattern, with lower payments in the winter months, which can suit a club whose income dips sharply. Ask about this before you sign, not after. If you are trading in an old fleet, the part-exchange value can act as a deposit, reducing the amount to finance.

Electric buggies are quieter and cheaper to run, but batteries have a limited life and replacement packs are a significant cost; lithium batteries usually cost more up front than lead-acid but last longer and charge faster. Petrol buggies cope with long or hilly courses without recharging. The choice affects running costs, resale value and how lenders see the fleet at the end of the term, so compare the whole cost over the finance period rather than the purchase price alone.

Used and refurbished buggies can cut the cost of a fleet, and many lenders will fund them if they come from a recognised manufacturer, have a known service history and are bought from an established dealer. Batteries on used electric buggies may need replacing sooner. Our page on used equipment finance explains how lenders approach second-hand assets.

Finance payments carry on through a wet winter when buggies sit in the store, so check the payments against a cautious year. If the buggies are worth less than the balance at the end of a lease, or if you need to end an agreement early, there may be a shortfall to pay. Make sure the term fits how long you expect to keep the fleet, and read the end-of-term terms on any lease before signing.