January 15, 2017 at 11:03 AM
A van is a huge investment, and you need to consider carefully all the options you have available before you decide which model is for you. One of the options available is to finance your vehicle.
Vehicle prices are nearly always on the rise, and it’s becoming more affordable for individuals to finance their vehicle instead.
According to the Finance and Leading Association, the number of cars sold on dealer finance grew 8% year-on-year in 2016, totalling a massive 2,298,850 vehicles.
This increase shows a dramatic shift towards finance, and with the amount of benefits, who can blame drivers for taking this option? But just what are the benefits of financing a van?
Fixed Term Finance
Dependent on your preference, there are packages available ranging from 12 to 48 months, with the total cost of the vehicle (plus interest) spread out over a fixed term.
The term you take out will depend on your own needs, and how much you are going to use the vehicle itself. With any long-term finance package, it’s important that you are able to make each payment, so assess your finances carefully before signing on the dotted line.
Fixed Monthly Costs
For those on a limited budget, the fixed monthly costs of a finance package are ideal. They give you the ability to budget accordingly, and ensure that you’re able to purchase the vehicle you need at an affordable price.
However, you do need to take into account the number of miles that you do each month and year. You’ll generally find that the less miles you do, the less you will pay.
Make sure to check the charge for going over the estimate though, this can effect the value of the vehicle at the end of the term, or the amount you get should you trade it back in.
Warranty and Servicing
For those of you who’ve previously owned a car outright, you’ll know that the upkeep and maintenance of the vehicle rest’s entirely on your shoulders. Should anything go wrong, or should any parts need replacing, you need to foot the cost.
Warranty and servicing packages are available on most finance packages, and they can help cover the cost of any services or repairs that need to be made. For example, at The Trades Van Centre, we offer a complementary three-month warranty on all our vehicles, including wear and tear.
A wider variety is another benefit of financing a van. If you’re purchasing outright you’re restricted by your overall budget, whereas financing offers you a wider choice of makes and models.
As always, you do still need to take into account your own financial situation before choosing the most expensive vehicle. Some dealers will offer to contribute towards the cost of the car, and the larger deposit you put down, the smaller your monthly payments will be.
Easy to apply
Unfortunately in this day and age, it’s becoming harder to secure loans of a higher amount. This makes purchasing outright harder for those who don’t have a large savings pot.
Finance packages can be created to suit your own requirements and situation. Anyone aged from 18+ can apply for finance, as long as you have a valid driving license and a good credit history you should qualify for finance.