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Why Get A Van On Finance: The Things You Should Know

June 7th, 2023

If you are looking for your next vehicle, a van could be something you’re considering purchasing. Vans are incredibly valuable for a range of reasons and they are handy for transporting goods or specific trades. A van can be an expensive purchase if you decide to buy outright, so leasing or getting a van on finance might be a great option for you. And, if the van of your dreams is drastically out of your price range, leasing a van can help you afford it over a longer time period. Keep reading our short guide to  find out more about financing a van and which options are best for you!

What Does Van Finance Mean?

Buying a van on finance is much like getting any vehicle on finance. It means that you are spreading the cost of your van over a longer period of time, allowing you to make smaller repayments across a longer period. This way, you can pay monthly instalments until you have repaid the full amount. After your final repayment,  you will then legally own the van.

Typically, you will pay a deposit, and sign a contract to agree on the repayment amount, and how long this will go on for. Then, at the end of your contract, you will be the owner of the van without having to pay any extra fees.

What Are My Van Purchase Options?

There are a few options when it comes to making your van purchase.

Contract Hire Vans

This is a common type of lease with a van. The basic premise is that you pay a set monthly fee which is covered up to a specific mileage allowance, tax and maintenance on the van.

This means you are not making any other commitments outside of your monthly payments on the van. Because this is a type of lease, you will not own the van at the end of your contract, your monthly payments will simply cease.

Hire Purchase Vans

This is a traditional and great way of buying vans on finance. You typically pay a deposit, however, you may be able to find some deals where there is no deposit to pay. Then you will be paying a standard monthly fee that you work out with your lender. Usually a deposit can reduce your monthly payments.

After your remaining balance and interest is paid, the van will belong to you, so you will own it outright, and can do as you please with it.

Finance Lease

Finance Lease is a versatile leasing option that offers flexibility without mileage restrictions or penalties for damages. Ideal for registered companies seeking control over their vehicle administration, Finance Lease presents numerous benefits, including the inclusion of the asset on your company’s balance sheet.

Moreover, Finance Lease offers VAT advantages. You have the choice to pay the entire cost of the van over the agreed lease period, along with interest charges. Alternatively, you can opt for lower monthly rentals throughout the lease term, with a final balloon payment added at the end. This balloon payment is determined based on your projected resale value for the van.

While Finance Lease boasts several advantages, it also has its share of drawbacks. To learn more about this leasing option and explore its full range of benefits, please visit the link provided below. Our team is readily available to assist you with any queries or concerns. Feel free to get in touch to discuss your specific requirements and discover the latest affordable van finance deals we have to offer.

Buying Vans Outright

This is the least complicated type of purchase for a van. You pay the full amount of money upfront and you don’t have to worry about any other upcoming expenses . This is an ideal option if you want immediate full ownership of your van and want to avoid contracts.

Van Finance Benefits

There are definitely benefits to getting your van on finance, and they can apply to different situations:

  • If you are trying to avoid a big payment upfront, then a van on finance is the perfect solution. With fixed monthly payments, there are no secret fees or big spends you need to make, and this will all be put into a contract.
  • With rising vehicle prices, it might be easier in the long run for you to opt for a finance plan to manage your funds better.
  • You are getting a brand new van of your choice, which may have been out of your price range to begin with, but with affordable monthly instalments, it makes it easier for you to afford the van you desire!
  • Getting your van on finance is a really simple process that you will be guided through. It is hassle free and straightforward.
  • Maintenance and road tax are often included too, giving you even less to worry about with your new vehicle.

Choosing The Best Option For You

When it comes to choosing the best option for you, it’s important to do your research and find the choices that suit you and your company. You might find that leasing a van or a van on finance will work best for your organisation. If you’re looking for a reliable way to purchase the van of our dreams, without forking out a large amount of money up front, then a van on finance could be the choice for you.

If you are still struggling to make a decision, speak to a professional for advice! Don’t be afraid to do your own research to make the most informed decision.

What Do I Need To Finance A Van?

When it comes to actually financing your van, it helps to be prepared. There are a few things  you will need to have on you. You will need documents to prove your identity, home address and a proof of income.

A credit check will typically be carried out so that your affordability can be reviewed, and the risk to the lender can be calculated. If your credit score is higher, you may be more liable for better interest rates, as you pose less risk to the lender of not meeting your monthly payments.

Bank statements and a P60 will help you to prove your home address and that you have a stable income. If you can’t provide any of these documents, it is important that you discuss this with a professional to work out your options moving forward.

The Process

Applying for your van finance is usually a straightforward and simple process. And a professional will help you through this anyway.

Initially, you will get a quote for your van finance, and you can decide whether that price suits you, or is affordable for your monthly instalments, or upfront payment.

You will then provide all your documentation to prove your address, identity and source of consistent income.

After this, you will hear back from the finance company with their decision, usually within 24 hours, to see whether they have approved your application.

Van Sales UK

From transit vans to pick up truck leasing, we want you to be able to drive the van of your dreams without worrying about your finances. Financing or leasing a van could be a great choice for you and your business.

Here at Van Sales UK, for our selection of vans, we offer:

  • Contract Hire
  • Outright Purchase
  • Finance Lease
  • Hire purchase

We want to ensure that you are getting the best deal possible while meeting your requirements. Our team is dedicated to helping you find the right financial decision for your van or fleet.

If you are interested in purchasing a van on finance, or any of our other options, feel free to get in touch with us for more information. Or if you’d like to explore any of our other services and products, you can head to our website for more. Our team will be happy to answer your questions and give you our best advice.


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