How does it work?
There are a number of van finance products available in the UK. Some of the most popular methods of financing a van include hire purchase (HP), personal contract purchase (PCP) and car loans. The right finance product for you will depend on a number of factors, and it's important to thoroughly understand what each agreement entails before you apply for car finance.
Personal contract purchase
With PCP agreements, you put down an initial deposit and then spread the remaining cost over a prearranged period, just as you would with a hire purchase arrangement. You have full use of the van during the agreement, but it still belongs to the lender. At the end of the PCP term, you have three options: you can either pay a usually significant lump sum – known as a balloon payment – to own the van, or hand it back (there may be charges for excess mileage and excessive wear and tear). Alternatively, you can use the value remaining in the current van to put towards your next vehicle – this is known as part exchange.
Personal contract hire
PCH is a popular way to ‘lease’ a van. With personal contract hire agreements, you normally pay an initial rental upfront – you then lease the van for a set period. Unlike PCP and HP deals you don’t have the option to purchase the vehicle at the end of the agreement; at the end of the agreement you simply return the van.
There may be additional charges for excess mileage and/or unreasonable wear and tear.
We understand that every penny counts. It’s important to find the right van to support your small business needs, for a price that’s best for your budget.
If you’re a sole trader in need of a single vehicle, Oodle could be the answer.
By completing our online car finance application you’ll know in minutes whether we can help support your business in finding and financing your next van. (Representative APR 15.9%.)
Unfortunately, we can’t offer finance to small-to-medium enterprises (SMEs) or larger companies as we don’t provide finance for fleets.
Why choose Oodle?
We’ve helped over 150,000 happy customers find the best vehicle for their budget and we’d love to do the same for you. Our friendly and experienced Oodle experts are on hand to support you every step of the way. Once we’ve pre-approved your finance application you can browse our range of quality vans on the Oodle Marketplace or visit an Oodle-approved dealer near you.