Vans are essential in maintaining the smooth operation of many businesses. However, not all business owners have the luxury to spend money on brand-new vans. It’s a good thing that used vans that are equally utilizable and efficient are ever available in the market. Used vans are highly ideal purchases for business owners because apart from the fact that they do not come at the price of brand new units, they can also be availed of through easy financing options. This post will discuss things to look out for in case you’d be buying a used van on finance. All you need to do is keep everything in mind to ensure that you make the most out of your money through your used van purchase on finance.
You need to look out for the things that we would enlist because you wouldn’t want to:
It is important that you look out for factors that we would enlist to avoid experiencing the following:
1. Waste your time
Failing to take note of important points that we would enlist can cause delays and unwanted changes in your business schedule. Vans are purchased for business efficiency so it would simply be the highest form of injustice and inconvenience if purchasing one would end up stalling your daily business operation.
2. Waste your money
It is safe to assume that one of the main reasons why you’d opt for a used van – on finance at that – is you’re after saving and wisely utilizing your budget. Such will not be the case if you’d fail to take note of important factors to look for. the same can also be said for van insurance. Make sure you’re getting the best insurance by comparing what’s already on the market. Use The Van Insurer to quickly get a number of van insurance quotes. Failing to take note of important matters will end up requiring your business to shell out more money than expected. No one wants that as it is the exact opposite of what you’re after.
3. Get into legal drama
It is important to take note of the essential points that we will enlist because you would want to make sure that you don’t get into any kind of legal drama. Financed used vans, however more affordable, involve big amounts of money. As money is involved, legal suits can be easily filed by any involved party in case any form of damage is incurred due to breach of contract or failure of any party to deliver what is duly required. You can also be penalized for failing to pay a proper tax. To avoid such instances, just make it a point to take note of all the important factors that we will enlist.
5 Things to Look Out for When Buying a Used Van on Finance
1. Options for financing
Van financing options will give you numerous ways to own a van if you can’t purchase with full cash payment. Many 0 deposit van finance plans can be even availed of. To get the most out of such plans, you need to be aware of your different options and the difference among them:
- Hire purchase – the most popular option that requires an initial deposit. Van ownership is transferred automatically to the buyer once payment is complete
- Personal contract purchase – also requires payment of initial deposit but with more affordable monthly installments. You will however need to make a big final payment come the end of your loan period. In this set-up, you’d have the option to trade in your van for another vehicle if it incurred no significant damage.
- Lease purchase – requires low monthly payments. You can choose to buy the vehicle or use your paid-in equity as a deposit for another vehicle. This package allows buyers to buy more expensive vans.
The good thing with used van financing is you’d even have an option to avail of a van without the need to secure a loan or use a credit card. You need to take note though that such a finance structure will require higher interest charges. If you want to pay for lower interest, you should opt for a hire purchase.
To secure that you don’t get into any legal conflict or drama, you need to secure the following documents:
- Logbook or V5C registration certificate – most important document that grants actual ownership and holds valuable information regarding the vehicle
- MOT Test Document – this secures that a used van is safe for road use
PRO TIP: You should confirm your logbook against official records.
Your tax liability will depend on the kind of financing that you’d opt for. Take note of the following points:
- Your purchase can be applied to your income tax bill if you would buy your van in cash
- You can utilize VAT provisions if you are VAT registered and the used van is VAT qualifying
- You can reclaim VAT if you’d be on a lease-purchase payment planning
- You can lower your business’ tax bill if your van purchase would qualify for an annual investment allowance, this is regardless if you are VAT registered or not
- It’s best to work with an accountant to fully utilize all the tax benefits that would be available for you if you’d avail of a used van on finance.
4. Test drive and inspection
It’s important that you thoroughly check the van of your choice before actual purchase. Secure the following:
- Do an inspection during daylight
- Do a separate nighttime inspection to check the lights
- Have a comprehensive inspection checklist
- Take the used van on a test drive on different kinds of roads
- Conduct a car history check – on your own or through online service providers
Lastly, you still need to be cautious to prevent being scammed. The common scams experienced by people that buy used vans are as follows:
- cloning – fraudulent changing of the van’s number plate to hide criminal history
- clocking – tampering with a car’s mileage to inflate its value
To avoid such, choose to work with a reputable trader with a good reputation that is affiliated with trade associations. A reputable trader always carries out vehicle inspections with the help of an independent motoring organization.