Having a van is essential for the optimized running of your business. No business will be able to run smoothly without the help of easy transportation that a van can provide. The good thing is, it’s not required for your business to have a brand new one, experts from Used Van Finance Deals know this. A used van can function just as well and cost not as much. If you’re looking for one this year, then let this article guide you. This post would answer all the most frequently asked questions of used van buyers. Buying a van, may it be used or brand new is never cheap. This is why we’d open you to the many van finance options available for you. Read on and take down notes!
What are your options?
Cold cash is not absolutely required if you’d opt for a van for your business. You have numerous used van finance options. Most will even allow you to not have the financial risk of van ownership while you’re paying for your used van. You can easily opt for hire or lease options. There are numerous financial implications so you should be extremely careful in choosing a van finance plan. To do that, ensure that you do the following:
- Do extensive research. (You’re doing it now, so kudos to you!)
- Reach out to experts and ask for advice – they can easily give you better options as they know the market like the back of their hands
- Know your budget – you should be fully aware of what your current business funds can allow. How much can your current budget afford? Having a van should not leave your business in a sensitive financial decision.
For van finance options, you can choose from the following:
- Contract hire
- Finance Lease
- Hire Purchase
- Outright Purchase
What is a contract hire van finance plan?
This option will allow you to have a lease agreement. With this van finance plan, you’d be required to pay a monthly fee that fits your budget. At the end of your contract, you would be required to hand return the van to the contract hire company.
What will the monthly cost include?
Your monthly cost will include your determined mileage allowance. It may also include a breakdown cover.
What about associated risks?
The leasing company will be responsible for associated risks. You won’t have to worry about spending money should anything go wrong with the van.
What are the benefits of a contract hire van finance plan?
You will enjoy the following benefits:
- You’d enjoy corporation tax relief as you’d have lease rental charges
- You won’t have to deal with the stress of van ownership
- You won’t have to worry about extensive car fleet administration
- You can use different kinds of vans
What is a finance lease?
This is another lease option that will give you the time to decide if you still can’t choose between renting a van or purchasing one outright. This does not come with mileage limits or damage recharges. You will also be free to mark the used can as an item on your balance sheet. The ownership though will not be under your company’s name. This is very similar to a contract hire finance plan. The only difference is you would have to be the one to pay in case your van would encounter any damages. You’d also have to answer to excess mileage.
What are the benefits of a finance lease?
You will enjoy the following benefits:
- Tax exemption benefits
- Cost spreading
- You’d be safe from depreciation
What is a hire purchase van finance plan?
This plan is perfect if you want van ownership but you can’t pay in money outright. This van finance plan will simply require you to put down an initial deposit. It would usually be at around 10%. You will then have to pay for monthly installments for 12 months or even up to 60 months. At the end of the contract, you will be given the option to purchase the van.
What are the benefits of a van finance purchase?
You will enjoy the following benefits:
- Repayment terms that are within your budget
- Perfect if you have a low credit score
- Your capital will not be tied up in an asset that depreciates
- Cost spreading
What is an outright purchase?
This finance plan will be available for you if you have enough money to buy a used van outright. This will be a practical option for you if you have enough budget and you don’t want to be tied up to any finance agreement. You should know though that you’re still very free to get a loan from a bank if need be. A loan will allow you to easily budget.
What are the benefits of an outright purchase?
You will enjoy the following benefits:
- The van will be fully available for your customization
- You won’t be needing to return your van
- You can claim the cost on your income tax bill
- You will be very free to sell the used van at any time
What are the main things that I need to consider before choosing a van finance plan?
You should be able to answer the following questions first before choosing a van finance plan:
- How much is your budget?
- Do you want van ownership?
- Do you want monthly repayments?
- Are you open to having mileage terms?
Knowing the answer to the following will allow you to choose just the perfect finance plan for the purchase of your used van.
