Three ways to finance your new van
At Car & Van Finance Direct we specialise in finding the best vehicle and vehicle finance package for your requirements, our latest blog focuses on the three ways to finance your new van!
At Car & Van Finance Direct we offer three different van finance options across an unbeatable selection of brand new vans, so there’s something to meet the most bespoke van finance requirements and something for everyone’s needs.
Find out more about our flexible van finance options below:
Van Finance Lease
Finance Lease tends to be the cheapest of our van finance options, although this is not always the case. You are required to pay an initial deposit, of which the minimum amount is three monthly payments followed by fixed monthly payments. A finance lease package can be taken out over periods ranging from 24 months to 60 months, at the completion of this term you are required to sell the van on to a third party to cover a final payment. This final payment is also sometimes called a balloon payment.
Annual mileage is estimated at the start of the contract, however there aren’t any penalties as such for exceeding this figure. Exceeding the mileage will affect how much your van is worth at the end of the contract and hence you may be left out of pocket when selling the van as you can recuperate enough money to cover the final payment.
With a finance lease package it is not possible to own the van at the end of the contact. The package includes a year’s breakdown cover and free delivery to UK mainland.
You can find out more about finance lease here.
Van Contract Hire
Contract hire is all about convenience, just like the finance lease package you are required to pay an initial deposit of three monthly rentals or more followed by fixed monthly payments over a term between 24 months and 60 months.
Mileage restrictions are more stringent than for finance lease agreements, you are required to stick to mileage agreed at the start of the agreement. Failing to do this will see you liable for further charges which are calculated by every mile you travel over the agreed figure. At the end of the term you are required to simply hand back the van to the van finance company and if there are no damages to the van which exceed fair wear and tear for the duration of the agreement, then there will be no additional charges.
With a contract hire package it is not possible to own the van at the end of the contact. The package includes a year’s breakdown cover and free delivery to UK mainland. You are also able to specify a maintained contract where all servicing, brakes, tyres and warranty repairs are covered in your agreement.
You can find out more about contract hire here.
Van Hire Purchase
Hire Purchase is potentially the easiest of our van finance options to understand and is the only of the van finance options which allows you to take ownership of the van at the end of the contract.
As a general rule of thumb, however there are exceptions, we will be looking for a minimum deposit which is equal to the full VAT of the van for hire purchase agreements. The benefit of doing this means that monthly payments are not subject to VAT providing you paid the VAT upfront.
If the finance company approves you can pay a lower deposit, you can also opt to include a balloon payment if you wish to pay a lower monthly payment, however by doing so you will be liable to pay this at the end of the agreement. At the end of the payment, you have completed the finance and the van is yours to own.
The package includes a year’s breakdown cover and free delivery to UK mainland.
You can find out more about hire purchase here.
Cheap van finance
At Car & Van Finance Direct we help you find the best vehicle and vehicle finance package for your requirements, with a team of industry experts here to meet all your needs. Interested? Simply fill in a contact form or call us on 02920789234 for a friendly no obligation chat about all you vehicle finance needs.