Whether you need a new van out of necessity or have found your perfect vehicle, affording it isn’t always realistic. Often, the costs of a van aren’t included when we predict our outgoings, making finance the only viable option for many people. The idea of finance can scare people, but with van finance, there are several benefits that could make it the better choice for your next purchase.
However, choosing the right provider can be a little tricky. There can be catches and lines to read between, so how do you know which one is the right one to choose? Throughout this article, we are going to explain what finance companies are looking for when applying for van finance, different types of van finance, ways to improve your chances of receiving van finance, and the benefits of taking the finance route when purchasing your next van.
What are finance companies looking for when you apply for van finance?
Traditionally, finance companies are looking at your credit score, which can be a little daunting for some. However, van finance can be a bit different. Van finance companies aren’t always about the perfect score due to the reasons people might need a new van. Vans are often for business use, so ascertaining credit might not be as tricky as you think if you have a viable business. If poor credit is putting you off applying for van finance, there really is no need to worry. Even if you’re self-employed and have been turned away elsewhere. Some companies understand how life can be, so don’t give up just yet.
Benefits of purchasing a van through finance
As mentioned above, a great benefit can be how ascertainable van finance is for people with lower credit scores, self-employed people, or people who have been denied finance elsewhere. Van finance can be a valuable tool for someone starting a new business as it means more money can be put towards other business essentials or branding the van itself. If you are starting a new business but have limited funds, it is a brilliant way to give your business the professional look that it needs to get off the ground. In addition, once you have the van you need, you can start using the van to make the finance payments. So, as well as a means to an end, using van finance can be incredibly beneficial.
What to look for in a van finance company
Of course, there are hundreds of finance providers to choose from, so how do you know which one is right for you? It can be easy to spend far too long browsing the internet looking for the best deal to suit your needs. Unfortunately, some finance companies are better to go with than others but identifying them isn’t always easy. So here are a few tips for knowing that you are choosing the right finance provider for your next van.
Check out their fleet – If a finance provider has a large fleet of vans, they are more likely a reputable business that you can trust. However, if this is not mentioned on their website, or the choices seem very limited, it might be best to look into a different finance provider.
Testimonials – Reading testimonials are a great way to check that a company is one you can trust. Don’t simply look at their rating but read things people might have struggled with before you make up your mind.
Is it too good to be true? – If an option is too good to be true, it probably is. Finance providers who promise you the world will probably want much more back than many others.
Give them a call – If a finance provider has communicative and knowledgeable staff who can answer any of your questions, then they are probably a good finance provider to go with. This also shows that you will have no trouble in the future should you need to contact them.
Do they offer cover? – Some van finance providers offer no cover once you have the van. This can be a significant warning sign. Try to find someone who can offer you at least one to three years of coverage from the moment you take the van away. In addition, if the van isn’t ready to drive when you view it, walk away.
What can you do to improve your credit score for van finance?
Pay everything on time – It goes without saying that paying everything on time is one of the best ways to maximise your chance of having a good credit score. Of course, things sometimes get in the way, but maintaining good communication can help reduce the impact of late payments.
Keep old accounts open – Even if you don’t use your old credit accounts, keep them open. The longer accounts are open, the better your score will be.
Stay below 30% – As a general rule, you should only use around 30% of any given credit limit. If this is too low, it is a good idea to ask your provider for an increase so you don’t go over.
Don’t apply too often – Applying for credit too often can leave your credit score extremely low.
Are you in need a van?
If you are looking to purchase a van, then get in touch with Used Van Finance Deals today. As a leading provider, you won’t find better used van finance deals in the UK. We have an incredible selection and deals that are far more affordable than anywhere else. Contact our team of experts to discuss the choice for you.