Used Van Finance vs. Buying Outright: Which is Right for You?

Whether you buy a works van with finance or buy outright largely depends on the capital you have available and also at what stage your business or enterprise is at present. For those with an established business in place and a chunk of capital in the bank, it might be better to pay outright and offset the purchase against the yearly tax bill but for those just starting out, looking into a used van finance deal may be a better option. In this short article, we’re going to look at some of the things you need to consider when you ask yourself the question, “Should I apply for van finance or buy outright”?

Buying Outright

As touched upon above, buying a van outright may be the way to go if you have the necessary capital, but it’s also important to note that buying outright is still a sizeable expense. You’ll need to be sure that the capital you are using the buy the van won’t leave you short in other areas. If you are buying a used van, either privately or through a used van dealer, you need to be sure that the vehicle is in perfect working order because if not, you could run into some major problems in the future. 

Many vehicles for sale advertised as ‘sold as seen’ seem almost too good to be true, and that’s because they sometimes are. This said, most people are honest and wouldn’t intentionally sell you a vehicle that isn’t fit for purpose or suffering from major faults. Ultimately, if you do have the capital in place to buy a used van outright and not a fully trained mechanic, it’s best to engage the services of one before you part with any money. They will be able to check the main vitals of the vehicle, including the clutch (if manual), gearbox, suspension, and brakes.  

Using Finance

Paying outright for a new vehicle is a lot of money to part with and this applies to both new and used vehicles. Used van finance deals are in most cases very competitive and you can factor the payments into your monthly outgoings. Finance is also a good option for those who have had difficulty obtaining business/vehicle loans through more traditional lenders such as banks. Contracts for repayments generally run from 12-48 months, allowing buyers to keep on growing their business and save any excess capital for other operational requirements.

One thing to consider is the balloon payment due at the end of the payment schedule, which can be a significant outlay. You are under no obligation to make this payment if you don’t have the necessary funds available, not happy with the van or simply want another one. Your used van finance provider will be able to provide more information. 

One major benefit of buying a van with finance is the optional service packages that will cover you in the event of breakdowns or mechanical faults. The peace of mind gained from taking advantage of a service package is one of the main benefits of buying a vehicle on finance, particularly if the van forms the core of the business. 

If you opt for used van finance deals in the UK, you also have the peace of mind that comes with buying from a reputable dealer, knowing that any faults that come to light after purchase will be rectified quickly and efficiently. This level of service is not common with used van cash purchases as you will have little or no relationship with the seller. 

Your Business your Choice

After reading the above information regarding buying outright vs buying with finance, you should be in a good position to make an informed choice as to which option best suits your needs and operational requirements. If you decide to buy outright, all well and good but we’d encourage you to check the sellers/dealers’ credentials before taking the vehicle and also get a fully trained mechanic to give it a pre-sale check. If you have decided that used van finance is the best fit for your needs, all you need to do is contact your finance provider, talk over the various deals available and find one that’s right for you. 

Ultimately, buying a van outright or buying with van finance is a major financial commitment, so ensure you carry out due diligence before making any deal or purchase. 

If you’d like to find out more about used van finance, how it works and what the right deal for you might look like, contact the experts at Used Van Finance Deals today. One of our friendly team members will be happy to talk you through the process involved in used van finance and answer any questions you may have.