Van Finance To Suit You

Rates from 10.9% APR. Representative APR 19.9%

Van Finance

Van Finance.

If you’re looking to buy a van and keep your initial outlay to the minimum we can help. There have never been so many different ways of funding a purchase. Van finance is available in many different forms and while not every kind will suit every person we’re certain we can help find the right one for you.

Let’s make it clear from the start. We will never try to persuade you of the merits of one option or one lender over another. That’s not our business. Our job is to help you compare van finance and find the choice that works for you.

We’ll explain how it all works and try to make you aware of the advantages and disadvantages. We’ll take the mystery out of van finance and put you in the driving seat.

Van Finance Hire Purchase.

This is probably the simplest form of van finance available. And not surprisingly it is the oldest.

As the name suggests, it’s a combination of hiring and buying. When you enter an HP agreement with a seller, the ‘hire’ part begins. This means you take possession of the van (as you would if you were hiring) but you do not obtain ownership (the purchase) until you have fulfilled the agreement.

In exchange for possession, you agree to pay for the van in instalments, which will include interest. The payments are spaced over an agreed period – one, two, three years or even longer. But there will often be in-built opportunities for you to pay off the outstanding amount early. At that point, the agreement is concluded and the van becomes yours.

However, don’t forget that the loan is secured against the van. That means if you fail to keep up with the repayments, the seller has the right to take back the van.

But let’s consider the key benefits

  • It’s easy to qualify.
  • There is no mileage limit.
  • Budgeting is easy with set sums and fixed interest.
  • You end up with full ownership.

Van Finance Personal Contract Purchase.

This has received a lot of coverage in consumer programs. It’s quite a new idea and has quickly become hugely popular, mainly because of the variety of options it gives you – which we’ll get to in a moment.

The idea is to keep your monthly repayments as low as possible. It does this by deferring the final settlement, known as the option to purchase payment, based on the minimum guaranteed future value (MGFV) which you agree at the start. As you’ll see in a moment, you can choose whether or not to make this final payment.

One of the most attractive features of PCP is that may include optional extras like a maintenance and service package.

And here’s the really interesting part. Once the contract ends you can:

  • Make the option to purchase payment and take full possession of the van.
  • Use the van as part exchange to fund the purchase of a new one under a new contract.
  • Return the van to the seller and walk away.

To summarise the benefits:

  • Choice of deposit and length of the contract
  • Maintenance costs may be included
  • The low payments make it relatively cheap
  • Flexible options at the end of the contract
Van Finance

Personal Contract Hire Van Finance.

In a way, this is the odd deal out. But when you compare van finance it’s important to include this method. The word ‘hire’ makes it clear that although this is a finance option it never results in ownership. If that suits you, and you are more interested in possession and use than in actually owning the van, then PCH is well worth considering.

You agree to keep within a specified mileage limit for the life of the agreement and, this restriction aside, you have unfettered use of the van. Maintenance and service are included in the price. The difference is that at the end of the contract you will not own the van – instead, you will have to return it to the seller.

The monthly payments may be higher than under PCP but the inclusion of maintenance costs is a significant benefit: no unexpected repair bills to worry about. And the advantage of not owning the van is that you’re not affected by any depreciation in value.

Personal Loan Van Finance.

This is not specifically a form of van finance. It’s the type of loan you might take out with any lender to fund a major purchase. But within the motor trade, there are many lenders who specialise in loans for vehicle finance.

Unlike the other options, with a personal loan, ownership passes to the buyer as soon as the contract is signed. The loan is not secured on the van and exists independently of it. It does mean the seller has a legal right to enforce payment. Be aware that this can have an adverse effect on your credit rating. But that aside, it’s a very simple form of finance, providing certainty and stability.

So now you know your finance options. Bright Motor Finance can help you take the next step. Using smart technology we’ll find the best quotes for you in seconds, 24/7. We don’t favour or recommend any lender over any other. We simply gather the facts, provide the figures and leave the rest to you. It’s the ideal way to compare van finance.

Van Finance
Payment History
Amount You Owe
Length of Credit History
New Credit Opened
Type of Credit

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

Try Our Car Finance Calculator?

Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply



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Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

Is there anything to consider?


  • You will not own the car until you make the final payment.

  • You are also not permitted to sell or modify the vehicle in any manner without receiving permission first.

  • Third, monthly repayments are typically higher when compared to PCP and other car leasing plans.

  • Finally, it can be expensive if you only need a short-term arrangement

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?
Assessing my credit record?

You can also see your credit report by contacting a company such as Experian or Equifax before you make an application online. It costs about £2. You can see your credit report online and determine whether it is accurate and correct. If you spot any errors, you can request that a note is added to your report for lenders to see. If you are struggling to obtain even bad credit loans then it makes sense to check your credit report before you make any more applications.

It may be that there is an error that needs to be corrected first. Remember that every credit arrangement you apply for will record a search against your file, and too many of these may put lenders off as it suggests you could be over-extending yourself with finance. So before you apply for your benefits car loan, pause on any other finance applications for a period of time and focus on repaying every other credit arrangement that you have fully on time – including utilities, mobile phones, credit cards and so forth. This will put you in the best possible position for your application.

Why compare car finance on benefits?

When you compare motor finance on benefits, you can instantly see which lenders are likely to be prepared to lend to you. Use our website to compare motor finance on benefits and it makes the entire process quick and easy. Simply enter your basic information and we will instantly scour the market to see which lenders may be prepared to offer to you and on which terms. When you see the car dealership which is best for you, you can then apply for your loan quickly and without delay, by clicking through to the lender via our website.

What Information Do Lenders Ask For?

When you apply for your car loan, the lender will ask to see evidence of your benefits income. This could include jobseekers allowance, disability allowance, Universal Credit or another form of benefits income. If you also have another source of income such as a job or pension, the lender will also ask to see this information. They will then carry out a credit check as part of the application process.