Investing in a van represents a significant purchase, whether buying for business or as an individual motorist. If, like many, you are not in a position to buy such a vehicle outright, there are options available, most notably buying on finance. But is financing a van the best option for you?
There are currently a number of financing options available, meaning identifying the perfect purchase plan can seem confusing. These range from hire purchase to leasing agreements, and enable you to take ownership of a brand new - or secondhand - vehicle for regular and affordable monthly payments.
With the price of new vehicles continually rising, being able to purchase a van outright is seldom an affordable option. However, through affordable financing agreements you are able to drive a new or used model from the forecourt after simply paying an initial deposit followed by regular monthly payments.
What’s more, many of these finance agreements provide the opportunity to purchase the vehicle outright at the end of the contracted period. Contracts usually run from 12 to 48 months, and feature a balloon payment at the end of the term which you will need to pay to take over full ownership.
It is worth noting that such a payment is optional which, since these often run into the thousands, means you are under no obligation to hand over the money. Instead, you can simply hand the keys back to the dealership you bought from, leaving you free to invest in another vehicle. In such a scenario, you have the assurance of being able to drive a different vehicle every few years, meaning you benefit from performance upgrades and the latest driver technology.
Further benefits of buying via hire purchase, contract hire, or lease purchase relate to the servicing and warranty of the van in which you’re investing. Maintenance costs can cause a headache for all motorists, but those operating a commercial vehicle face even greater need for ensuring performance. Many financial agreements provide the option of taking out servicing packages to cover any potential repairs and breakdown costs. These packages represent an affordable way to preserve the well-being of your vehicle, and protect you from incurring expensive costs for repair work and replacement parts.
In addition to the affordability of buying a van on finance, you have the reassurance that comes from knowing you’re purchasing from a reputable dealer. At Vanwise, our finance options are fully regulated by the Financial Conduct Authority (FCA), and we are able to give you a decision on finance applications almost instantly. Unlike buying from a private seller - where cash purchases are the norm - establishing such a relationship with a dealer will benefit you and provide great peace of mind.
For more information on financing the purchase of a used van, contact the friendly teams at Harlow and Maidstone. We can offer full details of the business contract hire options currently available, and help you find the ideal vehicle for your needs. Get in touch today for more information.