December 05, 2016
Its natural to have questions when looking for new van finance, at Vanman we offer a wide range of finance options, not aimed at confusing you, but finding a perfect deal for your requirements. So how do you know which of our finance options is best suited to your requirements? Vanman has examined the most frequently asked questions and provided answers, so your confusion is a thing of the past!
Here are your most frequently asked van finance questions answered!
Vanman offers you: van leasing, contract hire and hire purchase deals, you are required to pay a deposit with each of these van finance options, hire purchase is the only option where you own the van at the end of the agreement, after monthly payments following the deposit.
Contract Hire you again pay a deposit, followed by monthly payments and at the end of the term you hand the van back, just like a long term rental. Contract Hire deals come with the option of paying more for full maintenance, including: repairs, servicing and tyres.
With van leasing, following your deposit you pay monthly payments and at the end of the term you are legally required to sell your van on to a third party to cover a final ‘balloon payment.’
The balloon payment is essentially a final payment at the end of your van leasing deal, the balloon payment is calculated at the start of the contract, using projected mileage and van age figures. To cover this payment you are legally required to sell the van on to a third party.
Mileage restrictions depend completely on the van finance option that you select. With hire purchase there are no restrictions whatsoever, as the van is essentially yours, with contract hire you specify your mileage at the start of the contract and your monthly price is based upon this, with the requirement to pay a fee if you exceed the specified mileage. With van leasing agreements, your projected mileage is used to determine your final balloon payment, so if you exceed the mileage you may not be able to reach the valuation of the balloon payment when selling your van on at the end of the contract.
The deposit figure is again dependent on the van finance option that you select, Hire purchase deposit is usually the full VAT of the van, however you can pay more to bring monthly payments down. For van leasing and contract hire, you are usually required to pay a deposit between six and nine monthly rentals for the prices that we advertise, however the bare minimum deposit that we will accept is £500 or 3 monthly rentals.
All of our finance options are the same in terms of length, we offer terms between 24 and 60 months in length. We do not offer short term hire.
We can do business with persons based in Northern Ireland, we deliver to the ferry port and you can then pick the van up from the ferry port on your side in Northern Ireland. Unfortunately we cannot sell vans to the Republic of Ireland, or contact anyone with an international dialing code.
At Vanman we do not accept vans/cars/any vehicles in part-exchange, we recommend you to sell your van via a trusted source elsewhere then use the money to purchase a new van with Vanman.
At Vanman we do not sell used or second hand vans, as you can see from our site, we offer a huge range of new vans at fantastically competitive prices.
Lead times on our new vans will vary, if the van that you have decided to buy is in stock, we can deliver that van to you in as little as 5 working days. If the van is a factory order, you may have to wait longer, our dedicated advisors will keep you informed either way as to the whereabouts and time scale for your new van.
The answer to this question is yes, we have a number of vans in stock that can be purchased outright, also consider it may be cheaper for you to purchase via a finance agreement. Feel free to discuss your exact requirements with our dedicated experts and they’ll be happy to talk you through all of your options.
We get a number of questions which start with this pre-fix so we’re going to look at them all for you.
Bad credit – All of our finance options are subject to a full credit check, finance companies will look at: 3 year address history, one successfully managed credit item in the past 3 years, Full UK driver’s licence, proof of income, no current CCJ’s or mortgage arrears. Going through your business? You’ll require proof of positive trading and a director’s signature as a guarantor.
Sole traders and new businesses are regularly asking if they’re eligible for finance, being either of these doesn’t mean you are ineligible for van finance, finance companies will still be looking for the things specified above, if you have those, then you should be fine!
Finally, another one is not being VAT registered. This again doesn’t make you ineligible, you just won’t get the tax benefits associated with being VAT registered.