Buying a new van? Key finance questions to ask before you commit

Are you thinking about buying a new van? Whether you're upgrading your work vehicle or need something reliable for personal use, it can be a big decision - especially when it comes to arranging your finances. At First Response Finance, we specialise in helping people with bad or thin credit get the vehicle they need through Hire Purchase (HP) finance. But before you sign on the dotted line, here are some key finance questions to consider in advance.

1. What can I afford?

Before you start browsing for vans, make sure to take a close look at your budget. It’s not just about the monthly finance payments—you also need to consider the other costs associated with owning a vehicle, like insurance, fuel, servicing, and repairs. A good rule of thumb is to make sure your van finance fits comfortably within your monthly expenses without leaving you short. If we are under any impression that providing you with finance may put you under excessive financial strain, we will not proceed with the agreement.

2. What’s the total cost of the finance?

The price of the van is one thing, but how much will it cost you overall? Hire Purchase finance means you’ll be spreading the cost over an agreed period, with interest added. Make sure you understand the full amount you'll pay over the term, including interest rates.

3. How long should I spread the payments?

With Hire Purchase finance, you’ll agree to a repayment period—typically between 12 and 60 months. A longer term means lower monthly payments, but you’ll pay more interest overall. A shorter term means higher payments, but you’ll own the van sooner and pay less in interest. Finding the right balance for you is key.

4. Do I own the van at the end of the agreement?

With Hire Purchase, yes! Once you’ve made your final payment, the van is yours. Unlike other finance options like leasing or Personal Contract Purchase (PCP), there’s no large final payment or decision to make at the end—you just keep the vehicle.

5. Can I pay off my finance early?

Life can change, and you might find yourself in a position to clear your finance early. You can get in touch with our team to find out what your early settlement figure will be and whether you’ll save on interest by settling up sooner.

6. What happens if I miss a payment?

We understand that sometimes life isn’t straight forward and that financial difficulties can happen. If you ever think you might struggle to make a payment, it’s important to talk to us as soon as possible. Missing payments could affect your credit score and may lead to additional fees.

7. Do I need a deposit?

Many (but not all) Hire Purchase agreements require a deposit, but the amount varies. A larger deposit can reduce your monthly payments and the overall cost of finance, so it’s worth considering how much you can put down upfront.

8. Am I eligible for finance?

Even if you have bad credit history or a thin credit file, you may still be eligible for finance. At First Response Finance, we specialise in helping people with a less-than-perfect credit history. We look at your full financial situation, not just your credit score, to see if we can help you get the van you need.

Buying a van is an important investment, so taking the time to understand your finance options is essential. By asking the right questions and working with a lender who understands your circumstances, you can find a finance plan that works for you.

At First Response Finance, we’re here to help you on your journey to van ownership. If you have any questions or want to find out more about your finance options, get in touch with our friendly team today!

Ready to find your next van? Let's get you on the road.