Van finance is a way to pay for a van in monthly installments instead of the full amount upfront. You may put down a deposit at the start of the agreement, then make monthly payments over your chosen loan term, plus interest. The amount you pay each month will depend on a range of factors, such as the price of the van, the length of the agreement and the size of your deposit.
Spreading the cost could help make owning a van easier for people in all kinds of circumstances, including business owners, tradespeople and self-employed workers. It’s also possible to get van finance with bad credit, subject to status and affordability checks.
Some of the main benefits of van finance may include:
We understand the need for a reliable van, whether it’s for work or personal use. That’s why we work with trusted lenders who could provide van finance to a wide range of applicants. This includes various employment types and credit backgrounds.
While a good credit score might improve your chance of approval, it’s not a necessity. Some of our lenders specialise in helping people in difficult financial circumstances find finance. So whether you have bad credit, irregular employment or can’t afford an upfront deposit, there may still be van finance available to you, subject to status.
We consider applications from the following:
We use a soft search to give you a quote, which has no impact on your credit score. If you proceed, a hard search will be conducted which may impact your credit score.
There are a few van finance options to choose from, and each has its own pros and cons. At Car Finance 247, we work with lenders who could offer Hire Purchase (HP) and Personal Contract Purchase (PCP).
Here’s how business van finance works with these two options:
Hire Purchase (HP): With HP, you may pay a deposit upfront, then make fixed monthly payments until the end of the contract, plus interest. Once the final payment is made, you own the van. As you’re paying off the full cost of the van over time, HP is generally more expensive monthly, but you don’t have any mileage limits or damage fees to worry about at the end.
Personal Contract Purchase (PCP): With PCP, you may also pay a deposit and monthly payments, plus interest. But when the agreement ends, you’ll have three choices: hand the van back, pay a final lump sum (known as the balloon payment) to own it, or trade it in for another one. PCP is usually cheaper monthly but you’ll have to pay a large fee if you want to keep the van, and you could incur fees at the end if there’s any damage to the van or you go over the mileage limits.
Here’s a side by side comparison of HP, PCP and leasing:
|
Feature |
HP |
PCP |
Lease |
|
Ownership at end |
Yes (after final payment) |
Optional |
No |
|
Monthly payments |
Higher |
Lower |
Lower |
|
Mileage limits |
No |
Yes |
Yes |
|
Deposit required |
Usually |
Usually |
Usually |
|
Flexibility at end |
Limited |
High |
None |
Ultimately, your payments can depend on the deposit you put down, the interest rate, and the length of your agreement. It’s important to think about your long and short term budget when making your decision.
If you’re self-employed and looking for van finance, we could help! Thanks to our panel of lenders, we can help people with a variety of different employment circumstances find the best deal for them. This includes temporary, part-time, and agency workers too.
For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.
There are many reasons why you might want to use a finance company for your new van, rather than paying for it outright. Of course, this is something that will depend largely on your current circumstances.
However, the most common reasons for taking out a finance deal over purchasing your van include:
Find out more in our Choosing car finance vs buying a car outright blog article.
If financing a van is preferable to paying for it outright, you can see how much you could pay by getting a quote.
Getting van finance with Car Finance 247 can be simple and straightforward. We’ve streamlined our process to make it as quick and easy as possible. Here’s how it works: