Debunking van finance myths: what you need to know

At First Response Finance, we specialise in helping people with bad credit get the vehicle they need through Hire Purchase (HP) finance. That’s why we’re here to set the record straight and debunk some of the most common van finance myths.

Myth 1: “You need a perfect credit score to get van finance”

While having a good credit score can help you to secure finance more easily, it’s not the only factor lenders consider. At First Response Finance, we assess your overall financial situation, not just your credit score, and we’ll take the time to understand your personal circumstances. If you have a stable income and can afford the repayments, you may still be eligible for van finance—even with a bad credit history.

Myth 2: “Van finance is too expensive”

Some people assume that financing a van is always more expensive than buying outright. While you will pay interest on your loan, financing allows you to spread the cost over time, making it more manageable. Plus, with Hire Purchase finance, you’ll own the van outright at the end of the agreement so it’s a long-term investment.

Myth 3: “A deposit is always required”

Not all van finance agreements require a large deposit. While a deposit can help lower your monthly payments, some lenders offer options with little to no upfront payment. It’s worth checking what’s available based on your financial circumstances. At First Response Finance, a deposit isn’t always required – however, this will depend on your credit limit and the cost of the vehicle.

Myth 4: “You won’t own the van”

With Hire Purchase finance, you will own the van once you’ve made all your payments. Unlike leasing or Personal Contract Purchase (PCP), where you may need to pay a large final sum or return the vehicle, Hire Purchase finance means the van is yours at the end of the term. 

Myth 5: “Finance applications hurt your credit score”

While applying for finance may result in both hard and soft credit checks being made against your details, this doesn’t necessarily mean your credit score will take a big hit. If you make multiple applications in a short period, it could have a temporary impact, but responsible borrowing and on-time payments can improve your credit score over time.

Myth 6: “You can’t pay off finance early”

Many people believe that once they commit to a finance agreement, they’re locked in for the full term. However, most lenders, including First Response Finance, allow you to settle your finance early. At First Response Finance, there are no early settlement charges, but it’s always good to check if there are any early repayment fees with your lender. Regardless, paying off your agreement ahead of schedule can sometimes save you money on interest.

Don’t let myths and misinformation hold you back from getting the van you need. By understanding how van finance really works, you can make an informed decision that suits your budget and circumstances.

At First Response Finance, we believe in making van finance simple and accessible. If you have questions or want to explore your options, our friendly team is here to help.

Ready to finance your next van? Let’s get you on the road.