The best ways to finance buying a van
Whether you have poor or bad credit, don’t have the funds right now, or simply want to stretch out the payment of your vehicle, financing can be a great way to get access to a prime vehicle. As you may already know, there are many ways to finance a van, all with their set of pros and cons. Let’s take a closer look at each method and see which one would be best for you.
The first step is looking at van history just to make sure you’re not buying light commercial that’s a salvage repair. There are tonnes of places to get a report for cars, motorcycles and light commercial vehicles like CarVeto hpi check, Total Car Check and the RAC. Check online before you go and inspect the vehicle.
Dealer financing can be tricky. Many will advise against it, citing that you can get a better deal by dealing directly with a banking institution. But this is not always the case and bank financing isn’t the best option for everyone.
For one, some dealers have access to special deals because they have special relationships with lending institutions. And they can deal with multiple lenders at once and get the best deal. But one of the main advantages of dealer financing is that they will usually be more lenient when it comes to bad credit and can also offer financing on vehicles bought from another dealer.
This van finance specialist website from Swiss Vans will allow you to get financing on vehicles on their fleet, even with poor credit. However, you’ll have to pay an admin fee plus a 20% down payment. They also offer credit on used vans no older than five-years-old, but the vehicle will have to pass inspection first.
The second option is a personal loan. If your credit is in good shape, then you could get a loan from your current bank, finance provider, or building society. You can stretch it out for a period of up to seven years in most cases. However, make sure that the loan isn’t secured against your house, or else your propriety might be in jeopardy if you can’t pay.
However, as we said earlier, do not expect to get the best deal through a personal loan and know that your ability to get additional financing during your loan period might be affected.
Hire Purchase Financing
Hire purchase or HP financing is another very common way to finance a van. But this one can get tricky as well. When you finance the vehicle that way, the loan is actually secured against the van. This means that you never truly own the van until you have paid it off completely. You’ll also be required to put a deposit down.
This can be an option if you have less than stellar credit but is not the best deal and you’ll often have to pay more monthly than other options. You also have to consider the fact that your van could be repossessed at any time if you can’t make payments.
There are tons of different ways to finance a van, and it’s up to you to navigate the options and see which one would benefit you the most based on your needs, situation, and access to credit.