Van Hire Purchase Finance Explained

Hire purchase is one of the most popular methods to buy a vehicle in the UK. It allows you to spread the cost of the vehicle into manageable instalments over a number of years. If you’re interested in buying a van from us with a hire purchase agreement, here’s what you should know.

What is Hire Purchase Finance?

If you want to own your vehicle outright but don’t have the capital to purchase it straight away, hire purchase could be for you. There are no mileage limits or service agreements; you simply pay a set monthly fee until you’ve paid for the van in full!

How Does the Agreement Work?

Once you’ve decided on your vehicle, you’ll then have to pay a deposit. The more you put down, the lower your monthly instalments will be. The remaining sum, after the deposit has been deducted, will then be divided by the number of months in your agreement into equal payments. Use our online finance calculator to see how much you could pay for one of our excellent used vans!

What Happens After my Last Payment?

Until you make your final payment, the vehicle legally belongs to your finance provider. However, once the final instalment is paid, ownership will be transferred to you; it’s that simple.

What’re the Pros and Cons of Hire Purchase?

Pros

·         Easy monthly instalments, rather than one large upfront cost

·         You may be able to afford better, high specification vans

·         Fixed monthly repayments

·         You get to keep the van at the end of an HP agreement (with a lease deal, you would have to return it)

Cons

·         The van does not officially belong to you until the end of the contract and can be repossessed if repayments are not made

·         Chances of approval for van finance may be dependent on your credit rating

Visit Auto Capital today to browse our range of used vans and apply for van finance today!