Van Finance Guide

Everything you need to know about financing a van or commercial vehicle.

Van finance – There are thousands of jobs, both one-off and full time, that need a van. If you are someone who uses heavy tools and equipment or needs to move big things from A to B, without a van it’s a lot more difficult.

If you run a construction company, utility business or even a high street shop, you might want to get a van to make work life easier for you and your employees or expand your existing fleet. However, buying a van is a big investment.

Don’t worry, there’s another way to get what you need.

 

Van Financing

Similar to financing a car, you can split the cost of a van into regular monthly payments. As long as you keep the vehicle in good condition, this is the perfect way to get what you need at a much lower price.

To see what vans are available right now, simply enter a few details into our finance calculator and we’ll match you with thousands of eligible dealers. The best part? It has 0 impact on your credit score.

If you’re looking for a more cost-effective way to purchase a van or commercial vehicle, but don’t know what is best for you, here are the main finance options explained:

 

Business Contract Hire (BCH)

Also known as Business Leasing, this is the most convenient way to add a new vehicle to your fleet. A BCH is flexible, you can adjust your mileage requirements and even add servicing and maintenance options into your monthly payments.

The process is quick and easy. You choose your vehicle and how long you need it for (between 24 and 60 months is most common) then pay an upfront fee. Then all you have to do is keep up your regular monthly payments and return the van at the end of your contract.

Vans obtained through a Business Contract Hire are eligible for a 100% offset in VAT, saving you even more! If you have a large fleet, this could save a business thousands of pounds, giving you better ways to spend your budget.

 

Disadvantages of Business Contract Hire

BCHs are great, but there are a few things you should consider before committing.

If you go over your set mileage limits, you will receive fines at the end of your lease. Plan your mileage carefully and make your all your drivers know the limits.

You also need to keep your vans in good condition to avoid further fines. The conditions of your BCH may include a regular service requirement, be sure not to miss these.

 

Business Hire Purchase (BHP)

Getting a BHP is the most popular finance option for vans. This is an ideal choice if you need a van for a long time but can’t afford to buy one at the moment.

Unlike with a BCH, you don’t have to pay an upfront fee at the start of your agreement but if you have a deposit then this can help to reduce your monthly repayments. This flexibility can help keep costs low without having to change your agreement.

 

Disadvantages of a BHP

Because you are financing the price of the vehicle outright your monthly repayments will usually be higher than a BCH.

Any depreciation that occurred during your agreement won’t be taken into account in the finance calculation. Therefore you run the risk of borrowing monies for a van that will be worth less at the end of the agreement.

 

 

Should I Finance a Van?

Yes! You have multiple options when it comes to leasing a van, all with their own pros and cons. The agreements are flexible so you can find the perfect lease for your own van, or a new addition to your fleet.

Once you know which agreement you’d like, use our FREE finance calculator to be matched with thousands of lenders offering all sizes and models of van. Whatever you need, you can find it with Match Me!