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Should I Buy A Van On Finance?

Should I Buy A Van On Finance - Van Sales UK
October 11th, 2023

If you’re on the hunt for your next vehicle, you may be thinking ‘Should I Buy A Van On Finance?’ While this is a question that depends mostly on your own preferences, needs and requirements, we’ve created a guide to help you get to grips with the basics. From leasing to buying your van outright, we’re here to help you make your decision. To find out more, keep on reading!

Buying A Van On Finance: Explained

Buying a van on finance is a common process which individuals and businesses can benefit from. It is usually the best option if an upfront full payment is too costly. When a van is leased, or bought on finance, regular payments are made to cover the cost of the van. Keep reading to find out more about leasing options.

Leasing Options

These are some of the most common types of leasing when it comes to buying a van on finance.

  • Hire Purchase – Hire purchase involves a deposit payment, and the remaining money is paid in instalments. You will own the vehicle at the end of the lease so you can either sell or keep the vehicle. Hire purchase is good if you want to be the owner of the vehicle at the end of the contract, and you are not financially responsible for damages during the contract.
  • Personal Contract Purchase – PCP purchase means that you pay a similar deposit to HP, and then monthly instalments until an agreed date. You can then either pay a balloon payment to own the van outright or give it back to the lender. The balloon payment will be calculated by the van’s market value at the end of the term, which could help you save money.
  • Personal Contract Hire – PCH is a long term rental, where you pay instalments however you will not own the van at the end or have the choice to purchase it. This is a good way to get the cheapest finance van and is good for fleet finance too as you can keep up with the latest vehicles.

Buying A Van Outright

If you don’t think leasing is the right option, you may decide to buy your van outright. This is a good choice if you are able to make the full purchase upfront. You also have full ownership of your van with no monthly  or end of contract payments to think about.

While these are strong advantages, buying your van outright can have risks. All vehicles depreciate in value and this can end up costing you later on down the road. You may not be able to make a profit on your van if you decide to sell it and you will be financially responsible for any damages that occur.

Is Financing A Van Right For You?

Every individual and every business is different, so knowing whether financing a van is the right choice will completely depend on an individual. You may be struggling with your choice and if you want to find out more about van financing options or talk to a professional, you can contact us today to speak to our team here at Vanaways.


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