Your Van Financing Questions
Get your answers to all your finance questions with our detailed FAQs on van finance. We ensure you're fully informed for a smoother finance journey!
See More Common QuestionsCommon Questions About Finance
Discover the answers to all your van finance questions by diving into our comprehensive Van Finance FAQs. We've compiled a list of the most common inquiries to ensure you have all the information you need. Here's a taste of what you'll find:
How can I get approved for finance, and what documents do I need?
You can simply follow the steps on our website, or we are here to offer our assistance in completing a finance application form over the phone, making the process as easy as possible for you. Rest assured that your information will be treated with utmost confidentiality and will only be shared with our trusted network of finance institutions, who will perform a credit check on you/your company.
In the event that your van purchase is approved for finance, we kindly request a £250 deposit. At Hampshire Vans, we are regulated by the FCA and will be personally available to discuss the details, aiming to keep things simple and hassle-free.
When you come to collect your van, we kindly ask that you bring the following forms of identification for verification purposes:
- Your driving license
- A valid passport
- Two utility bills (dated within the past three months), such as gas, water, or electricity bills, or even bank/credit card statements showing recent transactions
Please keep in mind that telephone bills cannot be accepted as proof of address. You may choose to send us legible copies of these identification documents via email, WhatsApp, text, or postal mail.
To ensure your complete satisfaction and understanding, we will be available to talk through any questions you might have regarding the finance documentation before you sign on the dotted line.
I'm self-employed, will I get accepted for finance?
Great news! The process of applying for van finance as a self-employed individual is actually quite straightforward and very similar to applying for a bank loan or credit card. So, you'll be in familiar territory!
Assuming you have a decent credit history, the lender will just need to make sure that you can comfortably handle the monthly payments for the duration of the finance agreement.
Once all the necessary checks are done and everything looks good, your finance application will be approved, and you'll be well on your way to getting your van!
Now, if your credit score isn't as stellar as you'd like it to be, don't panic! There are still options available for bad credit van finance, and we can provide you with more information and guidance on that front.
Remember, we're here to help you every step of the way, so if you have any questions or need assistance with your van finance application, just give us a shout.
Our top priority is making sure you find the perfect financing solution for your needs.ere are some key points about financing options for self-employed individuals looking to finance a van:
1. Business registration: Make sure your business is registered with a company number.
2. Trading duration: Most lenders prefer a minimum trading period of two years, but we work with lenders who may consider individuals with a shorter trading duration.
3. Net profit evidence: Lenders will usually ask for evidence of your net profit to assess your financial position.
4. Usage declaration: Specify whether the van will be used strictly for business or for personal use as well.
This information can impact available financing options.If you're self-employed and have a poor or bad credit rating, getting van finance may be more difficult, but it is still possible. There are lenders who specialise in offering loans specifically for individuals with bad credit.
These lenders understand that everyone's financial situation is different and are willing to work with self-employed individuals who have faced credit challenges. They take into account factors beyond just credit score to assess loan applications.
So, even if your credit isn't great, there are options available to help you get the van finance you need. We can provide you with more information and guidance on securing bad credit van finance. Just let us know how we can help!
Do I pay VAT on van finance?
Typically, when financing a commercial vehicle, there is usually a minimum deposit required that is equivalent to the full VAT amount of the van's purchase price.
This VAT can be claimed back if your company is VAT registered.
How long does it typically take to process finance approval?
After we submit your information to the finance company, they will conduct a credit and affordability check, which typically takes a maximum of 24 hours. Once you're approved, we can release your van and arrange for collection or delivery at a day and time that is convenient for you.
How much is the deposit amount?
When deciding on a financing option for a van, it's important to consider the initial deposit requirement. Different financing options may have varying deposit requirements.
Typically, a larger deposit will result in lower monthly payments, as the total amount financed is reduced. On the other hand, a smaller deposit may lead to higher monthly payments, as the total amount financed is higher.
When determining the deposit amount, it's crucial to consider your budget and cash flow. Assess your financial stability and ability to make a larger upfront payment without impacting your day-to-day business operations. Depending on your circumstances, a larger deposit may be a financially feasible option, as it can potentially lower your monthly payments and overall financial burden.
However, if you prefer to have more liquidity and maintain a lower upfront payment, a smaller deposit may be more suitable. This allows you to allocate your cash flow for other business expenses and maintain more flexibility in your finances.
Carefully evaluate your budget, cash flow, and financial goals to determine the most appropriate deposit amount for your financing option. This will help ensure that you can comfortably make your payments while also managing your day-to-day business operations.
More FAQs
Financing a van means getting a loan to buy it. Instead of paying the full amount upfront, you can make regular payments over time, usually with interest added.
Financing makes it easier to afford and manage the cost of the van, allowing you to spread out the payments.
The terms and conditions for financing will vary depending on the lender you choose to work with. We tend to use mostly Close Brothers and Moto Novo.
A van loan can be a great option for people who want to buy a van but can't afford to pay the entire amount right away. However, it's important to meet certain requirements in order to qualify for van financing. By taking advantage of this opportunity, you can own a van while keeping your finances in check.
Your monthly payments would begin once your van has been collected or delivered to you.
Monthly payments would be paid to the finance company, as they are funding your vehicle.
If you need to update your bank details for monthly payments, please contact the finance company that is funding your van.
If you are having difficulty reaching them, please contact us and we can assist you in connecting with your finance company.
The contact information for your finance company can be found within your finance agreement.
If your finance application is approved, you are not obligated to purchase the vehicle. The approval simply provides you with the option to proceed with the financing if you choose to do so.
It's important to carefully consider your decision and make sure it aligns with your needs and financial situation. Feel free to ask any further questions you may have.
When deciding on a financing option for a van, it's important to consider the duration of the finance contract and how long you need the van for. Leasing contracts typically range from 12 months to 60 months or even longer. The length of the contract will have an impact on the monthly payments and the overall cost of financing the van.
If you only need the van for a short period of time, a shorter contract duration may be more suitable. This allows you to have lower monthly payments and the flexibility to return or upgrade the van at the end of the contract.
On the other hand, if you intend to use the van for a longer period of time, a longer contract duration can provide stability and possibly lower monthly payments. However, it's important to consider potential changes in your business needs or technology advancements that might make you want to upgrade the van earlier than anticipated.
Ultimately, carefully evaluate your business requirements, financial situation, and future plans to determine the most suitable contract duration for financing the van.
Yes, you can absolutely arrange your own financing for the purchase of our vans!
While we can assist you with financing options through our network of lenders, you are welcome to explore other financing alternatives independently.
Just let us know your preference, and we will work with you to facilitate the process. If you have any specific questions or need guidance regarding arranging your own financing, feel free to ask.
As a director, you might have the opportunity to support your company's finance approval by signing a DPG (Director's Personal Guarantee). This means that in the event your business is unable to make the finance payments, you will personally take responsibility for covering them.
If your circumstances have changed and you're struggling to afford your monthly van leasing payments, it's important to reach out to your finance company as soon as possible. They'll be happy to assist you and walk you through the next steps, tailored to the financing option you have chosen.
When selecting a finance option for a van, it's essential to consider the mileage limits that are typically associated with the agreement. Going over the agreed-upon mileage limit can result in additional charges or fees. Therefore, it's crucial to evaluate your anticipated annual mileage and choose a finance option that aligns with your business needs.
If you anticipate high mileage usage due to frequent travel or delivery requirements, it may be more suitable to opt for a finance agreement that offers a higher mileage limit. This will help ensure that you don't exceed the limit and incur any additional charges.
Conversely, if you expect to have lower mileage usage, a finance option with a lower mileage limit may be more cost-effective for your business.
By carefully considering and selecting a finance option that accommodates your anticipated annual mileage, you can avoid any unexpected charges and keep your expenses in line with your budget.
Van leasing, also known as contract hire, is a fantastic option for businesses looking to use a van without the hassle of owning it outright.
With this arrangement, businesses can enjoy all the benefits of a van without the long-term commitment or hefty upfront costs. Instead, they make regular monthly payments to the leasing company for the agreed-upon lease term.
At the end of the contract, businesses can return the van and easily upgrade to a newer model or explore other financing options. Van leasing is a flexible and budget-friendly solution that allows businesses to focus on their operations while leaving the maintenance and servicing to the leasing company. It's a win-win situation!
Hire purchase is a great financing option for businesses that want to eventually own a van. With hire purchase, you can make regular monthly payments that include interest, spread out over a set period of time.
By paying an initial deposit and fixed payments, you'll gradually become the proud owner of the van. Once you make all the payments, the van is all yours to keep, sell, or trade in for a newer model. It's a flexible and convenient way to own a van while managing your budget.
Having a good credit score is definitely a positive when it comes to getting approved for a finance agreement. It can increase your chances of being approved and may even lead to better interest rates. So, if you've been responsible with your finances and have a solid credit history, that's great news!
However, finance providers also take into account other factors when assessing your application. They want to ensure that you have a stable and reliable business. Things like your business's financial stability and trading history are considered as well.
So, while having a good credit score is important, it's not the only thing that matters. Showing that you have been handling your finances well and that your business is on solid ground can also strengthen your chances of approval.
Remember, finance providers want to see that you're capable of making timely payments and managing your financial obligations. So, keep up the good work with your credit score and focus on maintaining a stable and consistent business. With these factors in your favour, you'll be in a great position to secure favourable financing terms.
It's important to keep in mind that making changes to the terms of a finance agreement during the contract period is ultimately up to the finance provider.
They may have specific guidelines or limitations in place regarding modifications to the agreement. To explore the possibility of modifying the terms, it's best to review your contract and reach out to your finance provider directly.
They will be able to provide you with more information, discuss any potential changes, and explain any associated costs or fees. It's important to fully understand the implications of modifying your finance agreement before proceeding.
Monthly payments for business van finance may be deducted as a business expense, which could potentially reduce your company's taxable income and lower your overall tax liability.
It is recommended that you consult with a tax professional for personalised advice based on your specific situation. They can provide guidance on the specific tax implications and deductions available to you, making the process more manageable and helping you maximise your potential tax savings while adhering to the relevant tax laws and regulations.
We understand that many people have faced credit challenges due to the recession, and it's a common concern among our customers. If you're considering financing, we want to assure you that we are here to help.
We have extensive experience working with customers who have had credit issues in the past, and we have partnered with specialist finance companies who specialise in assisting individuals with these challenges.
So, if you have any concerns or questions regarding financing, please don't hesitate to reach out to us. We are always happy to provide guidance and find solutions tailored to your specific needs.