Van Finance at Vanbase

Van Finance at Vanbase

We all know life can throw us curve balls and whether that comes in the form of a new arrival to the family or your old vehicle going to the great scrapheap in the sky, or even if you just fancy a change, we have a range of vans to suit your needs, and yes that includes your financial needs. Buying a van is a big outlay and we understand you may need some options when it comes to paying.

As a family-run, customer-focused business, we put trust, transparency and fairness at the heart of all our finance deals.

HP, PCP & Lease Finance Deals Available

Hire Purchase (HP)

What is a hire purchase?

A hire purchase agreement is a method of financial support that allows you to buy a vehicle in monthly instalments over a pre-agreed term. The term is typically calculated in multiples of 12 months - however, at Vanbase, you can select any number of months between 1 year and 5 years, whatever suits your needs.

Pros of hire purchase

·       Flexible repayment terms to suit your needs and budget

·       Gives you access to the vehicle straight away

·       Fixed interest rates that stay the same for the duration of the agreement

·       No restrictions on the number of miles you can drive

·       There is no large payment at the end of the term

·       You can reduce monthly payments by paying a larger deposit and electing for a shorter repayment term (you can only do this before agreeing to the terms)

·       If you don't have a high credit score, it can be easier to get a hire purchase agreement than an unsecured loan - because the car acts as collateral

Cons of hire purchase

·       Although you have access to the car, it isn't officially yours until you make the final payment

·       Until you've paid a third of the total amount payable, the lender can repossess the car without a court order if payments are missed.

Personal Contract Purchase (PCP)

What is personal contract payment?

A personal contract purchase, also known as a personal contract purchase or simply PCP, is another way to finance a vehicle. It's more like a long-term rental than an instalment plan and, at the end of the contract, you can either return the van, keep it by paying off the rest of the vehicle's value, or use the resale value towards buying a new vehicle.

A vehicle bought on PCP may be returned at the end of the agreement and a van with lower mileage will generally be in better condition than one with a lot of miles under its belt - because of this, a lower maximum mileage will garner lower monthly payments. If you are planning to buy the van at the end of the term (by making what's known as a "balloon payment"), you don't need to worry about maximum mileage.

Pros of personal contract payment

·       At the end of the contract, you can choose to return the van, buy the van, or use the resale value towards buying a new vehicle

·       You can lower the monthly payments by paying a larger deposit at the start of the contract and electing for a lower mileage limit

·       Flexible repayment terms to suit your needs and budget

·       Gives you access to the vehicle straight away

·       Fixed interest rates that stay the same for the duration of the agreement

Cons of personal contract payment

·       The "balloon payment" at the end of the term, if you choose to keep the van, can be quite large - often a few thousand pounds

·       There are restrictions applied to the number of miles you can do in the vehicle

Lease Purchase (LP)

What is Lease Purachse?

A lease purchase is a type of finance which is used to buy a van over a set period with monthly payments and a final payment at the end. It's known as one of the most affordable ways to pay for a van as the monthly payments can be lower than other finance options, and the length of the lease purchase agreement can often be negotiated to suit the needs of the buyer.

Pros of Lease Purchase

·       Due to lower monthly payments, you could increase your budget to get a better van than you first expected, i.e. newer, bigger or with less mileage. Always talk to the finance provider to understand your options and what is affordable for you.

·       You will own your van outright at the end of the lease purchase agreement once you've paid the final balloon payment. Once your final balance is paid, you own the vehicle. You can also either sell it back to us, or part-exchange it for money off your next vehicle.

·       No VAT is payable on monthly instalments.

·       In the beginning, the lease agreement is flexible and will allow you to adjust the deposit, monthly payments and final payment to suit your needs.

·      You can pay off the purchase agreement before the fixed term is over and own the vehicle outright earlier than expected. It's worth noting that this may come with early settlement penalties, so it's advised you check your lease purchase agreement documentation.

·      As you will own the van, in the end, there are no damage or mileage penalties.

Cons of personal contract payment

·       You must have sufficient funds to pay off the final payment. To note, it may be possible to get another financial agreement to cover the end payment if you cannot, but this is not guaranteed.

·      Depending on market conditions, the value of the final payment may be higher than the actual market value of the van.

Van Finance Calculator

Here at Vanbase, you can use our simple Van Finance Calculator to find out what a finance agreement will look like for you.

Simply enter the price of the vehicle you are looking to buy and the repayment term to see how much you'd pay each month, as well as the total repayment value, all laid out very clearly.

By clicking the More Options button, you can add a deposit amount into the calculation and also a maximum annual mileage (the latter is for PCP only), both of which will reduce your monthly and total repayments.

However you'd like to pay for your next used van, whether it's through hire purchase, personal contract purchase, or by buying it outright, we're here to help you find the right van (and payment plan) for you. Get in touch with our friendly team today.

Sub-prime finance is not guaranteed and may cost more than finance provided by a prime lender. We will try to obtain finance for you but there is no guarantee. It may be from a sub-prime lender, and if so, the cost of finance may likely be at a higher rate than prime lenders offer.