Top FAQs About Van Finance Explained

Top FAQs About Van Finance Explained

If you're considering buying a van in the UK, it's natural to have many questions about van finance. Understanding how van finance works, what options are available, and how to prepare can help you make an informed decision and choose the best route for your needs. This guide answers some of the most common questions about van finance to help you get started.

1. What types of van finance options are available?

There are several ways to finance a van. Common options include:

• Hire Purchase (HP): You pay a deposit followed by fixed monthly payments. Ownership transfers after the final payment.

• Personal Contract Purchase (PCP): Lower monthly payments than HP, with a balloon payment or return option at the end.

• Lease Purchase: Similar to HP but often used by businesses.

• Rent2Buy: Flexible renting without a credit check, with the option to buy after several payments.

Van Finance Company offers access to a large panel of lenders providing different finance types suitable for varied credit profiles.

2. Am I eligible for van finance if I am self-employed?

Yes, self-employed individuals can apply for van finance. The process typically requires providing evidence of your income and financial status, similar to other loan applications. Lenders will assess your ability to afford repayments based on your financial documentation.

3. Can limited companies apply for van finance?

Limited companies that have been trading for at least 12 months may apply. Applications usually need to meet financial and credit criteria, and deposits including VAT are commonly required.

4. What if I have poor or adverse credit?

Van Finance Company works with lenders who specialise in sub-prime lending and can consider applications from people with poor or adverse credit. While this does not guarantee approval, it broadens options for those previously declined elsewhere.

5. How long does the finance approval process take?

Approval times vary, but many decisions are given within about 60 minutes during working hours. Limited companies often receive same-day decisions. Quick approvals depend on the completeness of your application and lender requirements.

6. What documents do I need to prepare?

While requirements vary by lender, typical documents include:

• Proof of identity (passport, driving licence)

• Proof of address (utility bill, bank statement)

• Proof of income (payslips, bank statements, or financial accounts for self-employed)

• Company accounts or VAT returns if applying as a limited company

Preparing these documents in advance can speed up your application.

7. Is a deposit always required?

Most van finance options require a deposit, often including VAT if you're a business. The size of the deposit can affect your monthly payments and the lenders willing to finance you.

8. Are vans covered by any warranty?

Yes, vans purchased through Van Finance Company come with a comprehensive in-house warranty (three months or 3,000 miles) included at no extra cost. Extended warranties are available through third parties such as Autoguard Warranties to provide added protection.

9. Does Van Finance Company deliver vans?

Yes, free UK delivery is offered to your home or workplace for vans purchased through Van Finance Company.

10. What should I consider before applying for van finance?

• Affordability: Ensure you can manage the monthly repayments alongside other outgoings.

• Credit check: Most lenders perform a credit check, which may impact your credit score.

• Vehicle choice: Select a van that meets your needs and budget.

• Comparison: Consider multiple offers to find terms suitable for your circumstances.

Summary

Understanding your options and preparing your documentation can streamline your van finance application. Whether you are self-employed, a limited company, or have credit challenges, there are options available. Van Finance Company connects you with a panel of lenders and provides expert assistance to help you find suitable van finance.

Remember: Each application is subject to lender approval. Terms and conditions vary, so careful consideration and asking questions is important.

View available vans and apply when you are ready to explore your van finance options with Van Finance Company.

Next step

View available vans and apply when you are ready.