Best Van Hire Purchase Deals

In today’s competitive business landscape, small enterprises are constantly seeking ways to optimize their operations and reduce costs. One area where significant savings can be made is in vehicle acquisition, particularly when it comes to vans. The best van hire purchase deals offer small businesses an opportunity to acquire essential vehicles without straining their financial resources. These arrangements have a significant impact on cash flow management and operational efficiency, making them a crucial consideration for entrepreneurs looking to expand their fleet. Source

For small businesses exploring van finance options, understanding the variety of deals available is key to making informed decisions. This article delves into the top 10 best van hire purchase deals for small businesses in 2023, examining factors to consider when choosing a van and exploring financing alternatives. Additionally, it provides valuable tips to negotiate the most favorable van hire purchase deals, ensuring that businesses can secure reliable transportation while maintaining financial stability. Whether a company is looking for cheap van finance or the best van finance deals in the UK, this comprehensive guide aims to assist in navigating the complex world of business van finance.

Understanding Best Van Hire Purchase Deals

What is Hire Purchase?

Hire purchase is a finance solution that allows businesses to acquire vans without paying the entire purchase price upfront. It’s an agreement between a customer and a finance company, secured against the vehicle. The finance company hires the van to the customer for an agreed period at a set monthly sum. This arrangement gives small businesses the opportunity to own essential vehicles without straining their financial resources.

Under a hire purchase agreement, the customer has the option to gain ownership of the van at some point during or after the agreement by paying an additional sum called the Option to Purchase Fee. It’s important to note that the customer is not the legal owner of the vehicle until they have made the last payment.

How Best Van Hire Purchase Deals Works

The process of van hire purchase typically follows these steps:

1. Initial Deposit: At the beginning of the contract, the customer pays a deposit, usually around 20% of the van’s value. This deposit can often be offset against the next VAT return for VAT-registered businesses.
2. Agreement Term: The customer chooses the term of the agreement, typically ranging from two to five years.
3. Monthly Payments: During the contract period, the customer makes fixed monthly installments. These payments are spread equally over the chosen term, helping to match the customer’s budget.
4. Option to Purchase: At the end of the agreement, once all contracted payments have been made, the customer can pay the Option to Purchase fee to take legal ownership of the van.

It’s worth noting that a hire purchase agreement can be settled at any time by paying the outstanding finance balance and the Option to Purchase fee to the lender. In some cases, the lender may offer a rebate on the interest if the balance is settled before the agreement end date.

Benefits of  Best Van Hire Purchase Deals

Van hire purchase offers several advantages for small businesses:

1. Path to Ownership: Unlike van leasing, van hire purchase leads to ownership of the van, making it a suitable long-term investment for businesses looking to build their fleet.
2. Cash Flow Management: Fixed monthly installments allow for better cash flow management and easier budgeting.
3. Tax Benefits: As the van is considered a business asset, companies may be eligible for tax deductions on the interest paid and depreciation of the vehicle. It’s advisable to consult with an accountant to maximize potential tax benefits.
4. Flexibility: Hire purchase agreements can be customized to suit specific business needs, including deposit amount, repayment term, and final payment amount.
5. No Mileage Restrictions: Unlike some leasing agreements, hire purchase doesn’t impose mileage restrictions, giving businesses the freedom to use the van as needed.
6. Early Termination Options: Customers have the option of voluntary termination, also known as the Half Rule. This allows them to end the agreement and return the vehicle to the lender after paying half of the total amount repayable.
7. Straightforward Process: Van Hire purchase is a simple way to acquire a new or used van without a large financial outlay upfront, making it an attractive option for many small businesses.

By understanding the intricacies of van hire purchase, small businesses can make informed decisions about their vehicle acquisition strategies, potentially leading to improved operational efficiency and financial management.

Top 5 Best Van Hire Purchase Deals

Ford Transit Custom

The Ford Transit Custom stands out as a top choice for businesses seeking a medium-sized van. It offers a range of options to suit various needs, including a cutting-edge hybrid, diesel-powered workhorse, and fully-electric powerhouse. The van comes in different configurations:

1. Van: Features a full-size bulkhead, two or three seats in the cabin, and a choice of single or twin side-sliding doors.
2. Double Cab-In-Van: Offers two or three front seats, an additional fixed row of three seats behind the driver, and a fixed bulkhead.

The Transit Custom boasts impressive specifications:

• Max loadspaces ranging from 5.8 to 9 cubic meters
• Maximum payload of 1327kg
• All-Electric version offering up to 236 miles of range
• Plug-In Hybrid with 35 miles of electric-only driving
• EcoBlue Diesel engines with various power outputs

Ford provides flexible finance plans, including hire purchase options, making it easier for businesses to acquire this versatile van.

Volkswagen Transporter Best Van Hire Purchase Deals

Volkswagen Commercial Vehicles offers a straightforward Hire Purchase option for their vans, including the popular Transporter model. This finance solution allows customers to spread the cost over one to five years, with deposits starting from as little as one monthly payment.

Key features of Volkswagen’s Hire Purchase deal:

• Flexible agreement terms (1-5 years)
• Low deposit options
• No mileage restrictions
• Ownership at the end of the agreement
• Available for both personal and business customers
• Suitable for taxi usage (maximum 36-month term)

The Hire Purchase agreement leads to ownership, making it ideal for customers planning to keep their vehicle long-term.

Mercedes-Benz Sprinter

Mercedes-Benz offers attractive Hire Purchase deals on their Sprinter van range. While specific details are limited, the company provides:

• Low deposit options
• Flexible terms
• Competitive pricing (available on application)

Businesses interested in acquiring a Mercedes Sprinter van through Hire Purchase are encouraged to contact dealers directly for personalized offers and detailed information.

Vauxhall Vivaro Best Van Hire Purchase Deals

The Vauxhall Vivaro presents an excellent option for businesses looking for a reliable workhorse with ample storage space. While specific Hire Purchase details are not provided, Vauxhall offers Finance Lease options, which may be suitable for businesses seeking flexibility:

• Choose your deposit (as little as 1 month in advance)
• Select primary period length (24 to 60 months)
• Option to lower monthly payments with a balloon payment

The Vivaro starts from £27,555.00 (excluding VAT) and offers:

• Two wheelbase options and two roof heights
• Load space ranging from 5.2m3 to 8.6m3
• Maximum load length of 2,537 mm
• Innovative features for storing long items

Vauxhall also provides attractive offers such as 4 Years’ 0% APR, 4 Years’ Free Servicing, 4 Years’ Warranty, and 4 Years’ Roadside Assistance with their 4x4x4x4 promotion on the Vivaro.

Renault Trafic

Renault offers Hire Purchase options for both new and used Renault vehicles, including the Trafic van. This financing solution is designed for Renault company and commercial vehicles, providing businesses with a path to ownership.

Key features of Renault’s Van Hire Purchase deal:

• Fixed repayments and fixed interest rates
• Option to defer a proportion of the vehicle’s cost to a final balloon payment
• Potential for lower monthly payments compared to standard Hire Purchase
• Improved cash flow management
• Available for new and used Renault models

While specific model details are limited, Renault provides examples of monthly payments for their van range:

• SL30 Blue dCi 130 Advance: From £430.27 per month, 7.9% APR Representative
• SL30 E-Tech Advance RC Panel Van MY24: From £548.80 per month, 7.9% APR Representative

These top 5 van Hire Purchase deals offer businesses a range of options to acquire essential vehicles while managing their finances effectively. Each deal provides unique features and benefits, allowing companies to choose the best solution for their specific needs and budget constraints.

Factors to Consider When Choosing a Van

When selecting a van for a small business, several key factors come into play. These considerations have a significant impact on the van’s suitability for specific business needs and overall operational efficiency.

Size and Capacity

The size and capacity of a van are crucial factors to consider. Businesses need to assess their daily needs to determine the ideal van size. This involves evaluating the typical load in terms of size, weight, and volume.

Payload capacity is a critical consideration. It refers to the maximum weight a van can safely carry as specified by the manufacturer. For instance, a bag of dry sand weighs about 1330kg per cubic meter, while a Euro pallet measures 1200mm x 800mm. It’s essential to choose a van with a payload capacity that comfortably accommodates business requirements, allowing for potential future growth.

Load space, measured in liters or square meters, is another vital aspect. For transporting small tools or parts, a medium or small van might suffice. However, if multiple Euro pallets need transportation, a larger vehicle may be necessary.

Wheelbase length also affects a van’s capacity and maneuverability. Options include short, medium, and long wheelbases. Additionally, van manufacturers offer three different roof heights: low, medium, and high. These factors determine the van’s storage capacity and affect its maneuverability.

Fuel Efficiency Best Van Hire Purchase Deals

Fuel efficiency has a substantial impact on a business’s finances. Smaller vans often offer better fuel economy compared to larger ones. For businesses involving frequent long-distance travel or deliveries, choosing a van with good fuel efficiency can help reduce expenses and increase profitability in the long run.

Reliability Best Van Hire Purchase Deals

Reliability is paramount when selecting a van for business use. A dependable van serves not just as a mode of transportation but also as a mobile office and storage space. It forms the backbone of daily operations for many businesses.

Several van models have earned reputations for reliability. The Ford Transit, a stalwart of the British business landscape, offers a range of engines and drive options. Its EcoBlue diesel engines provide commendable fuel economy and are designed to lower emissions and reduce service costs.

The Mercedes-Benz Sprinter, manufactured to German engineering standards, is built for longevity. Its powertrains are designed for optimal performance and minimal maintenance. Similarly, the Mercedes-Benz Vito offers hard-wearing build quality and efficient engines with extended maintenance intervals.

The British-made Vauxhall Vivaro provides a blend of functionality and value for money. Its range of engines balances power and fuel efficiency, and it comes with various warranty options for swift issue resolution.

Safety Features

Safety is a critical factor when choosing a van. Advanced Driver Assist Systems (ADAS) have become increasingly common in modern vans, enhancing driver safety and reducing accidents.

Key safety features to consider include:

1. Lane departure warning or corrections
2. Automatic emergency braking
3. Blind spot detection
4. Driver monitoring systems / driver drowsiness detection

These systems use sensors and cameras to alert drivers to potential dangers and, in some cases, take corrective action. However, it’s worth noting that ADAS fitment on commercial vans across Europe is generally poor compared to passenger cars. When available, these features are mostly optional, with Ford, Volkswagen, and Mercedes-Benz leading in terms of availability.

By carefully considering these factors – size and capacity, fuel efficiency, reliability, and safety features – businesses can make informed decisions when choosing a van that best suits their operational needs and contributes to their overall success.

Financing Options for Small Businesses

Small businesses have several financing options available when it comes to acquiring vans for their operations. These options provide flexibility and can be tailored to suit different financial situations and business needs.

Deposit Requirements Best Van Hire Purchase Deals

Most financing agreements require an initial deposit. For hire purchase deals, this is typically 20% of the van’s value, which is equal to the VAT. If the business is VAT registered, this deposit can be reclaimed against the next VAT return, providing a cash flow advantage. Lease and contract hire agreements often require a deposit equivalent to six monthly payments to secure advertised prices. However, some providers accept a lower deposit of three monthly payments, though this may affect the monthly price.

Interest Rates

Interest rates play a crucial role in determining the overall cost of financing. These rates are usually fixed for the duration of the agreement, providing stability and predictability for businesses. The annual percentage rate (APR) can vary depending on the vehicle and the applicant’s credit score. Maintaining a good credit score is essential, as it can significantly impact the interest rate offered. Some providers conduct credit checks on all applicants to determine eligibility and set appropriate rates.

Repayment Terms

Financing agreements offer various repayment terms to suit different business needs:

1. Duration: Terms typically range from 2 to 5 years, with pricing often based on specific durations for different types of agreements.
2. Monthly Payments: These are usually fixed for the duration of the agreement, helping businesses budget effectively.
3. Balloon Payments: Some agreements, like finance leases, include a balloon payment at the end. This is used to reduce monthly costs and is equal to the predicted residual value of the van.

Early Repayment Options

Many financing agreements offer the flexibility of early repayment, which can be beneficial for businesses experiencing improved cash flow:

1. Hire Purchase: These agreements can often be settled early by paying the outstanding finance balance and the Option to Purchase fee. Some lenders may offer an interest rebate if the balance is settled before the agreement end date.
2. Personal Contract Purchase (PCP): Early termination of PCP agreements is possible but can be more complex. It typically requires payment of 50% of the total loan amount, including the deposit, monthly installments, and the balloon payment.
3. Small Business Loans: Some providers offer loans specifically for small businesses, ranging from £1,000 to £25,000, with repayment terms between 12 months and 10 years. These loans often allow additional repayments without charges and may offer interest rebates for early settlement.

When considering early repayment, businesses should factor in potential fees or penalties. It’s crucial to review the agreement terms carefully and consult with the finance provider to understand the implications of early repayment.

By understanding these financing options and their various components, small businesses can make informed decisions when acquiring vans, balancing their immediate needs with long-term financial planning.

Tips for Negotiating the Best Hire Purchase Deal

Negotiating a hire purchase deal for a van requires careful consideration and strategic planning. By following these tips, small businesses can secure favorable terms and maximize the benefits of their van finance agreement.

Research Market Rates

Before entering negotiations, it’s crucial to have a solid understanding of current market rates for van hire purchase deals. This knowledge serves as a foundation for evaluating offers and identifying competitive terms. Small businesses should research interest rates, repayment terms, and typical deposit requirements for the specific van models they’re interested in. This information helps in setting realistic expectations and provides leverage during negotiations.

Compare Multiple Offers

To secure the best deal, businesses should obtain quotes from various finance providers. This approach allows for a comprehensive comparison of terms, interest rates, and overall costs. When comparing offers, it’s important to consider factors such as:

1. Annual Percentage Rate (APR)
2. Deposit requirements
3. Monthly payment amounts
4. Contract duration
5. Balloon payment options (if applicable)

By evaluating multiple offers, businesses can identify the most favorable terms and use this information to negotiate with preferred providers.

Negotiate the Purchase Price

The purchase price of the van has a significant impact on the overall cost of the hire purchase agreement. Small businesses should negotiate the van’s price before discussing finance terms. This strategy can help reduce the total amount financed, potentially leading to lower monthly payments or a shorter repayment term. Some tips for negotiating the purchase price include:

1. Research the market value of the desired van model
2. Be prepared to walk away if the price isn’t right
3. Consider timing your purchase during end-of-month or end-of-quarter sales periods
4. Explore fleet discounts if purchasing multiple vans

Read the Fine Print

Before finalizing any hire purchase agreement, it’s essential to carefully review all terms and conditions. Pay close attention to:

1. Early repayment options and potential penalties
2. Maintenance responsibilities
3. Mileage restrictions (if any)
4. End-of-term conditions
5. Insurance requirements

Understanding these details helps avoid unexpected costs and ensures the agreement aligns with the business’s long-term goals.

Additional Negotiation Strategies:

1. Leverage your credit score: A good credit score can help secure more favorable interest rates. If your business has a strong credit history, use this as a negotiating point.
2. Consider the deposit amount: While a larger deposit can reduce monthly payments, it’s important to balance this with the business’s cash flow needs. Negotiate a deposit amount that works for your financial situation.
3. Explore flexible repayment terms: Some providers may offer options to adjust payment schedules to align with your business’s cash flow patterns. This flexibility can be particularly beneficial for seasonal businesses.
4. Discuss add-ons and extras: Some finance providers may offer additional benefits such as free servicing or extended warranties. These can add value to the deal and should be considered during negotiations.
5. Seek professional advice: If you’re unsure about any aspects of the hire purchase agreement, consider consulting with a financial advisor or accountant who specializes in business vehicle finance.

By employing these strategies and thoroughly evaluating all aspects of the hire purchase deal, small businesses can secure favorable terms that align with their financial goals and operational needs.

Conclusion Van Hire Purchase

Choosing the right van hire purchase deal has a significant impact on a small business’s operations and financial health. By carefully considering factors such as size, fuel efficiency, reliability, and safety features, companies can find a vehicle that meets their specific needs. What’s more, understanding the ins and outs of financing options and negotiation strategies enables businesses to secure favorable terms, leading to better cash flow management and long-term savings.

In the end, the best van hire purchase deal is one that aligns with a company’s operational requirements and financial goals. By doing thorough research, comparing multiple offers, and negotiating smartly, small businesses can make a well-informed decision. This approach not only helps to acquire essential transportation but also contributes to the overall success and growth of the business in the competitive landscape of 2023 and beyond.

FAQs Best Van Hire Purchase Deals

Q: Can van leasing expenses be fully deducted from taxes?
A: Yes, leasing a van can be fully tax-deductible because it is considered a rental expense rather than a purchase. This allows you to claim back 100% of the tax as long as you meet the necessary criteria.

Q: What is the typical monthly cost of leasing a van?
A: The cost of leasing a van can vary, but you can find competitive deals ranging from £150 to £250 per month through providers like Vanarama.

Q: Is leasing a van advantageous for self-employed individuals?
A: Definitely. Self-employed individuals can benefit greatly from leasing a van, enjoying perks such as tax advantages, lower monthly payments, coverage under a full manufacturer’s warranty, the option to frequently upgrade to newer models, and predictable costs.

Q: Is it advisable to lease a van?
A: Leasing a van might offer lower monthly payments compared to buying one outright. However, over a long term, leasing could end up costing more. Also, if you need the van beyond the initial lease term, extending the lease or starting a new one might lead to extra charges.