Van Hire Purchase Finance Explained

Considering using van finance to pay for your next used van? Here are the main things you need to know about hire purchase (HP) agreements…

What is Hire Purchase Finance?

Hire purchase is a type of van finance that involves paying for a vehicle in instalments over the course of a set number of months, rather than all at once in a large lump sum. Spreading out the cost this way can make your purchase easier to manage, which is why it is becoming an increasingly popular option.

How Does Hire Purchase Van Finance Work?

In a hire purchase agreement, the total cost of the van is broken down into instalments which you will pay on a monthly basis. You will put down an initial deposit, and the amount left to pay will be divided by the number of months in your contract to give you the cost of each instalment.

At Cheshire Vehicle Supplies, our van finance agreements are tailored to you, so you will be able to choose a deposit amount and contract term length that suits you, and we will provide quotes that match your requirements. We also offer no deposit van finance, which allows you to pay solely in instalments if you prefer.

What Will Happen at the End of a Hire Purchase Agreement?

When your HP agreement comes to an end and all of your instalments have been made, you will need to make one final payment called an option to purchase fee. This transfers ownership from the finance provider to you, so that the van will legally be yours.

How Do I Apply for Van Hire Purchase Finance?

To apply for van finance, click here! Complete and submit the application form and we will be in touch shortly to help with your van finance enquiry. Alternatively, browse our latest range of used cars on our website and click on the finance quote below to get started.