Van Finance

Looking For A Great Van Finance Deal?

We help everyday Australians find, compare and secure van loans in record time.

The Ultimate Guide To Van Loans

What Is a Van Loan

Most lenders, like banks and finance companies, favoured vans as a popular type of asset. Normally, vans are classified as a good risk because they are easy to value. Borrowers are being conscientious in repaying their vans because these are important to them. As a result, many competitive lenders are engaged in this sector.

 

Financing is available for a new or used van. There are more competitive rates offered by lenders to buyers wanting to purchase a new van. This is because a new van is considered to be lower risk and interest rates are lower. It keeps its value all throughout the loan term.

 

On the other hand, if you wish to get a used van for financing, the lender can still use your van as collateral. This is when you decide to get a secured loan. Only, you need to be aware of the possible restrictions on the age of the van you can use. Typical lenders may require for a two to five-year old-van at the time of application. Other lenders may state that at the end of the loan term, the van cannot be more than ten years old.

How to Compare Van Loans

When you apply for a van loan, it is important to take into consideration the following:

  • Loan term. Decide if you will go for a short-term or long-term loan. When you choose a short-term loan, it can lessen the amount of interest you pay on your loan and at the same time get your debts paid off quicker but your monthly payment increases. Moreover, if you decide for a long term loan, you can have lower repayments but the amount of interest you pay overall gets higher. Choose a suitable loan term for you.

 

  • Interest rate. Know the interest rate being offered to you. The interest rate of your loan affects the amount of your repayments. Make a comparison of different loans and get the best deal for you.

 

  • Minimum repayments. Before you apply, find out your minimum repayment amounts and ask yourself if your income and budget can shoulder the repayments.
    Insurance requirements. Your vehicle may be used as collateral by the lender. Thus, it is well-insured all the time until you finish paying the loan in full.

Ways to Get Lower Interest

Have a good credit history

There is a possibility for you to get a great deal and low-priced car loan with a good credit history.

Be in stable employment

The lender is expected to see you as a financially stable customer if you don’t change employers regularly (i.e. you stay in your job for many years).

Offer a deposit

You may create equity in your asset by giving a deposit either from your savings or in the form of trade-in. By doing this, you’ll be able to lessen your repayments because you only borrow a smaller amount of money from the lender.

Negotiate

You may ask the lender for a discount on your interest rate or request them if fees can be waived. Some lenders may work out a cheaper van with you.

Shop around

You don’t have to say yes right away to the first low-interest loan offer to you. Consider other loan options and prepare yourself to ask about loan terms, fixed /variable rates and the like. Surely, you’ll get the best deal.

Van Financing for Small Businesses: Important Factors to Consider

Choosing to get/buy a new commercial van for your business (SME) can be a rather tricky endeavour. For one, you will need to put the cost of the van, insurance, and tax, among other factors, into consideration before going ahead with the idea. Another option would be to lease one. If you, however, are torn between buying and leasing, here are a few key considerations before making the final decision. Factors such as why you need the van and insurance should also be considered as well.

 

1. Know the Reason for Financing a Van


The reason for having the van, and how (where) it will be used should be considered when deciding between leasing and buying. An excellent example of this is if the van will be used at a construction site or a potentially ‘dangerous’ environment. The risk of it being bashed or dented is rather high, which could also mean extra expenses and fines from the leasing company. You would also be required to be upfront with the leasing company each time you wish to use the van for a different mission. Most companies will also restrict use and mileage on their vans until fully paid for too.

 

Buying the van, on the other hand, means you can use it however/whenever/wherever you wish without seeking anyone’s approval. Only the insurer should know how the van will be used. This makes ownership a better option if, for example, looking to use the van in construction sites.

 

Take into consideration how the van will be used, and the risk factors when choosing between leasing and buying. Most SMEs will, in most instances, prefer leasing, and especially if looking to maintain an image.

 

2. Weigh Your Options (Leasing vs. Buying)


Buy: This simply means purchasing the van outright. Although this will take up a large chunk of money from your bank accounts, it is a one-off investment. The other good thing about buying the vans is that you have the freedom to sell them off as soon as their work is done. As a rule of thumb, any vehicle will start depreciating as soon as it hits the road (from the dealer). Owning the van, however, means you don’t have to deal with leasing companies and their restrictive contracts.


Lease: A typical lease lasts around three or four years. You, however, have two options should you choose to go this route: financial lease and hire purchase.
Hire purchase: You will be required to put a down payment, then pay a set amount of money each month for a said period. You also have an option to purchase the van (at a small fee) at the end of the contract.


Financial lease: With this option, the dealer remains the owner of the van during the life of the contract. You, however, have a leeway into how you pay for it. You could choose to pay the total cost of the van, plus interest, within an agreed time. You could also choose to pay lower ‘monthly rental’ fees with a final balloon payment (estimated resale of the van at the end of the lease).


Leasing enables you to pay a deposit each time you wish to upgrade, which again means you can get a new and more efficient van each time. It also eliminates the risk of depreciation, or the need to get rid of the older van. In other words, leasing is a better option if looking for a cheaper way to have/use a van without necessarily owning it. Buying is, however, a preferred option for those looking for limitless mileage and long-term ownership plus use.

 

3. Think About How You Want to Modify the Van


Do you wish to add modifications to the van? Some of the typical changes, such as decals, racks, dash cams, etc., are considered small and reversible, hence could be allowed by the leasing company. Any irreversible modifications should only be done if looking to buy the van at the end of the lease period. There are lots of ready-to-work options available for smaller fleets, something a small business can take advantage of.

 

4. Window-shop for the Best Van Your Business Needs to Have


Many car manufacturers and major firms will have specific business centres where fleet buyers can walk in and take advantage of various offers. Take time to visit different vendors and dealers to see what they have to offer. If looking for more than one van, you can then look for companies that specialise in business fleet leasing for a more convenient solution. You could get several vans at a bargain and a cost-effective contract too.

 

Shopping around also increases the chances of getting yourself the latest vans, as well as larger vans ideal for various uses. Larger vans are particularly ideal for specialised ranges in trade (e.g., electrician ranges), as well as transporting goods. It is also by window-shopping that you can identify potential dealers you would go to in the future. For those dealing with hundreds of vans per year, contacting the manufacturer directly can not only get you a good deal but also have the vehicles custom-designed to your requirements and specifications.

 

5. Consider Trade-In or Part Exchange


Some dealers may let customers to part exchange or trade-in with a new van. One of the best ways to do this would be through a specialist car-buying website, a dealership, or even a broker.

 

6. Read and Understand Lease Contract Limits


You are more likely to face mileage restrictions and limitations on what you can and cannot do with the van during its lease period. Although these may come standard, it would be best if you looked a little more closely in their terms and conditions, and particularly the manufacturer’s inclusions and breakdown cover. You’ll also be required to sign to a binding 3- or 4-year contract with the company. Choosing to end the agreement early will only result in penalties on your business as well. That said. You might want to weigh between leasing and buying the van. Take vehicle costs, tax, and insurance into consideration if looking to buy the van. Leasing the van may, however, mean not paying for insurance, as the dealer will have taken care of that.

Van Financing on Bad Credit

Bad credit history can make it hard for one to secure vehicle financing. Just because you have a bad credit rating doesn’t, however, mean you cannot access such. Dozens of companies offer custom-designed funding for people with bad credit too. You may also be required to prove that you can afford the van, and in some instances, provide proof of income.

 

Some of these companies may be willing to offer up to £25,0000 in van loan. This, of course, depends on your ability to afford monthly payments and support the loan. The lender will first have to verify your ability to support the loan before approving your loan. You can then start looking for an affordable van within your credit limit once approved.

Does Applying for Van Financing Affect One's Credit Score

Some lenders will do a ‘soft credit search’ when you apply van financing but have bad credit. This enables them to provide a personalised quote based on your rating. The ‘soft’ credit search doesn’t affect your credit report in any way. If happy with the individualised amount (loan) offers, plus the monthly repayments and APR, the lender will then perform a full credit search once the van purchase is completed.

We protect your credit score

At Credit Capital, as we pride ourselves on building lifelong relationships with our clients, we go above and beyond to ensure that your credit score is looked after. We do all the work ourselves up front, before submitting an application to a lender, to ensure that who we apply to is 100% the best lender for your individual circumstances, and the approval is almost guaranteed.

Is Van Finance Available for Self-Employed Individuals With Poor Credit Score

A good number of lenders approve van financing for self-employed persons with bad credit all the time. The lender may ask for 3-month bank statements before processing the loan application. They use this criterion to determine proof of income and the ability to service the loan. Some lenders will even approve the loan request without asking for these.

Book a free consultation with one of our experts today!

Lenders

Free Car Buyers Guide

Get access to Credit Capital's free car buying guide, valued at $97, yours absolutly free.

car buying guide by credit capital

How to choose a car?

Take the stress and guesswork out of buying your next new or used or car. Discover tricks to quickly find the best car for you.

Top 10 Negotiating Tips

Maecenas accumsan, elit id hendrerit convallis, lectus lacus fermentum nisi.

Car Valuation Tips

Learn how to Use free online car valuation tools to accurately find out exactly how much the car is worth today.

Get a quick finance pre-approval