You need a new van, but can’t afford it. That’s where van financing comes in. Here’s a quick breakdown of the options to help you get the best deal.
How do I get van financing?
If you’re buying used vans for sale Oxford, seek out a reputable dealer such as cotswoldvancentre.co.uk/buy/used-vans-for-sale/oxford</a>. They’ll be able to talk you through your financing options when you purchase your van.
According to money expert Martin Lewis, vehicle financing mis-selling could be the new PPI , so make sure you’re well informed to avoid any hassle later.
Hire Purchase or Personal Contract Purchase?
Hire purchase (HP) allows you to make a deposit and then pay off the balance in monthly instalments over a pre-arranged period of time. The payments can be on the high side, but you can reduce them by paying a bigger deposit.
Personal contract purchase, otherwise known as PCP, is similar to HP in that it lets you put down a deposit and repay through monthly instalments. The difference is that you generally make smaller payments every month before paying a lump sum at the end of the agreement to buy your van. Otherwise, you may be able to return the vehicle if there’s no damage and you’re within your mileage limit. Moreover, you could exchange the van for another model, using your current vehicle as a down payment.
Could Personal Contract Hire work for you?
Another option is PCH. Technically, you hire rather than own the vehicle, although you’ll still need a deposit and make regular monthly payments. The advantage of PCH is that the repayments are low, but you’ll need to keep the van in good condition to return it at the end of the lease.
What’s the best financing option for your van?
When reviewing your financing options, consider factors such as mileage restrictions, deposit amounts, and whether you want to keep the van at the end of the financing agreement. Hire purchase is the right choice if you need unlimited mileage, but PCH could work best if you’re on a tight budget.