Vans can be one of the most valuable vehicles for several different reasons. You can use them to transport goods, move, and several other business purposes. However, buying a van outright is not cheap. The good news is that there are alternative ways to get your hands on a van without paying for it outright. Leasing is a great way to get the van you want while making payments manageable over a set period. Keep reading to find out how to finance a van.
"Think about financing a van over buying outright."
The process of van financing is similar to standard commercial vehicle finance. But, there are more perks if the van is for work-related purposes. When choosing a van for your company, it's essential to find one economical, large enough for your products/goods, and in good condition. Once you've found the perfect van for your company, it's time to find a way to pay for it over a set period. This is where van financing comes in.
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"Consider your options when it comes to van financing."
Taking out a personal loan is one way to finance a van. One pro of taking out a personal loan is you get a wide choice of various lenders. The bad news is that you could potentially jeopardise your company should you fail to meet your repayment schedule.
Personal loans are relatively simple. You pay a deposit and then pay a set amount every month until you have paid off the vehicle. With personal loans, remember to consider the potential interest when calculating affordability.
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"A personal business loan can help you finance a van."
Once you have finished your contract, you often will have the option to purchase the van outright. This is an attractive choice for people who have a bit of cash they can play with initially but would like their monthly payments to be small. Leasing a van is always an option for companies looking to secure a van ASAP without paying for it outright. If you decide to go down the route of lease purchase, you will typically pay a deposit and then repay over a set period.
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"Lease purchase allows you to buy a van on finance."
Contract hire is helpful for many companies; something that sets it apart from other options is that you won't own the van at the end of your agreement. The point of contract hire is getting access to quality vehicles at a lower cost. Most contract hire agreements provide customers with a new van every year if their payment schedule has been honoured. The pain points of contract hire are that the initial payments can be pretty high, and you won't own the van. Maintenance is included in contract hire, so you don't have to worry about getting the van fixed yourself.
Some van finance companies even offer 24-hour breakdown assistance, which is a perk for any business that travels cross country.
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"Financing a van through contract hire can provide maintenance."
Choosing to finance a van through a personal loan, lease agreement, or contract hire has many positives and negatives. Stretching payments out allows companies and individuals to get a van of their choosing without paying a large sum upfront.
This can be a convenient option for companies struggling with cash flow but need a vehicle as soon as possible. Other perks are available, like ongoing maintenance and roadside assistance, should your driver ever find themselves in a sticky situation. The bad news is that you won't own the van outright, but you can work to purchase it over a while, making it a win for everyone.
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"Leasing a van can allow your business to grow."
If you're in the market for a new van, make sure you research all of the options available to you and your company. You may find that leasing is the most suitable choice for your needs. Van finance is a great way to get the van of your dreams without spending an arm and a leg up front.
Read our blog here to weigh up whether leasing or buying is better for you.
Visit Love Finance to find out the best way to finance a van for your business. We offer rates as low as 2.9% from a wide variety of lenders.
