PCP Van Finance
Our PCP (Personal Contract Purchase) van finance solutions are designed to be flexible, affordable, and perfectly suited to your needs.
With PCP, you finance the van over a term—typically 3 to 4 years—with a set annual mileage expectation.
Are you someone who enjoys switching up your van regularly?
If you love driving the latest models and prefer manageable monthly payments that fit your budget, PCP might be the ideal choice for you. While Hire Purchase (HP) is popular, PCP offers an attractive alternative by keeping your monthly costs lower and giving you several options at the end of the contract. With PCP, you can drive the model you’ve been eyeing, rather than settling for a less ideal option.
Why PCP is a Great Choice:
PCP allows you to enjoy your dream van while maintaining financial confidence. At the end of the loan term, you can opt to upgrade to the latest model or simply return your current van.
With our wide range of van finance solutions, you won’t need to compromise on style or quality to find a van that fits your finances. Plus, with our soft search service, you can have peace of mind knowing that your credit score will be protected during the application process.
Finding a van that aligns with your budget, needs, and preferences is a tall order! Luckily, you’re in the right place. We have an impressive selection of makes and models available to finance, with something to satisfy every type of driver.
What we can offer:
- Friendly Team: Our experts are here to help and guide you
- Credit Score Protection: Our soft search ensures your credit score remains unaffected
- Tailored Plans: We customise payments plans to fit your needs
- Approved Dealers: All our dealers are FCA-authorised and approved
- Comprehensive Support: We cater to all financial situations
- Wide Selection: Choose from new and used vans
- Transparency: We provide clarity throughout the process
- No Initial Deposit: Start your journey without a deposit
Experience a new van and switch things up when you’re ready! Apply today.
PCP van finance: Switch things up without breaking the bank
Feeling tied down to one vehicle? As our driving needs evolve, we often find ourselves wanting something different. Whether you need a spacious van for work or a sleek model with the latest tech, buying a new van outright can be costly, especially for higher-end models.
The issue? Buying a new van can be expensive, especially if you’re wanting to purchase a higher-end model.
The solution? Personal Contract Purchase (PCP).
PCP allows you to enjoy the benefits of a new van without a long-term commitment. With our straightforward PCP finance service, you can get behind the wheel of a new or higher-end van without paying for it all upfront.
Simply fill out our quick online application and we’ll take care of the rest.
What is Personal Contract Purchase (PCP) van finance?
Short for Personal Contract Purchase, PCP is a type of van finance that enables you to drive a newer or more expensive vehicle without having to pay for it upfront. Instead, you are required to make monthly payments over a fixed time period.
With a few extra terms and conditions involved, PCP can be tricky to get your head around.
Our process is super simple:
1. Apply online
2. Choose your van
3. Sign the agreement
4. Drive away in your new van!
What happens at the end of the agreement?
Once you have successfully completed your agreement term, you will have 3 options:
1. Return the van to the finance company
2. Become the legal owner of the van by paying a final lump sum
3. Part-exchange your van for a different one!
Important Considerations:
- Mileage Limit: Adhere to the agreed mileage limit to avoid extra charges.
- Condition: Ensure the van is in good condition with minimal wear and tear if you plan to return it.
PCP can be straightforward with the right support. If you have any questions or need clarification, feel free to contact us or consult with your lender.
The specific requirements can vary from lender to lender. If you have any questions or queries, it’s always a good idea to consult with your lender ahead of the agreement or feel free to reach out to a member of our team.
Personal Contract Purchase (PCP)
Use our handy PCP Calculator to estimate your monthly PCP payments & hit Apply to get the best soft search quote from our huge panel of lenders.
What are the advantages to using PCP?
1. Lower Monthly Payments
One of the main benefits of Personal Contract Purchase (PCP) is the lower monthly payments compared to other finance options. By including a final “balloon payment” at the end of the contract, PCP allows you to reduce your monthly costs, making it more affordable to drive a newer or more expensive van.
2. Flexibility in Vehicle Choice
PCP gives you the opportunity to drive a higher-end vehicle or a newer model without committing to a long-term ownership. This flexibility can be particularly advantageous if you prefer to drive the latest models or want a vehicle that suits your evolving needs.
3. Option to Upgrade
At the end of the PCP term, you have the option to either return the van, make a final balloon payment to own it outright, or part-exchange it for a new model. This means you can enjoy the benefits of driving a new van regularly without being tied to one vehicle.
What are the minimum and maximum payment periods for PCP?
PCP agreements typically range between 24 and 48 months. This flexibility allows you to choose a term that best fits your budget and financial plans.
What happens if I go over my mileage limit?
When you start a PCP contract, you’ll agree on a mileage limit that affects both your monthly payments and the final balloon payment. If you exceed this limit, you’ll incur excess mileage charges.
Different lenders have varying terms:
- Some contracts allow a small amount of additional mileage without extra fees.
- Others charge for every mile over the limit.
If you frequently drive long distances or use your van for multiple purposes, carefully consider your estimated mileage to avoid unexpected charges. Regularly monitoring your mileage and possibly purchasing additional mileage upfront can help manage costs.
What is a "balloon payment"?
A balloon payment—also known as a Guaranteed Minimum Future Value (GMV)—is a lump sum paid at the end of the PCP contract. It’s termed a “balloon” payment because it is a larger amount than your regular monthly instalments.
Key Points About Balloon Payments:
- The amount is determined at the start of the agreement, based on the van’s anticipated depreciation.
- While it makes monthly payments lower, you’ll need to plan for this final sum if you want to keep the van.
- You can also choose to refinance the balloon payment or return the van in good condition with no extra fees.
Budgeting is crucial when entering into any van finance agreement. Plan for the balloon payment by setting aside savings or use our online handy calculator to better understand your financial commitments.
If you prefer not to make the balloon payment, you can return the van (provided it meets the fair wear and tear standards and stays within the mileage allowance) and potentially upgrade to a new vehicle.
Can I get a PCP deal?
Your eligibility for a Personal Contract Purchase (PCP) deal largely depends on your credit score. PCP finance companies are generally more cautious compared to Hire Purchase (HP) providers because they need to balance offering a good APR rate with the residual value of the van if you decide to return it. However, at We Finance Any Van, we work with a large panel of PCP lenders. This means that if you have an excellent or good credit rating, we can help you secure a PCP deal.
What's the difference between PCP and HP van finance?
Ownership
With PCP, you don’t own the van until you make the final payment at the end of the contract. This allows for greater flexibility, as you can tailor your loan to fit your financial situation and lifestyle. PCP typically offers lower monthly payments because you’re only paying for a portion of the van’s value during the term.
Flexibility
In contrast, with Hire Purchase (HP) van finance (HP), you own the van once all payments are made. HP can be more straightforward if you prefer to own your vehicle outright, but PCP provides options to return, purchase, or part-exchange the van at the end of the term.
Am I eligible for a PCP van finance deal?
General Requirements
To apply for PCP finance, you generally need to be at least 18 years old and provide proof of residency. A healthy credit rating and stable income are also essential, as these demonstrate your ability to manage monthly payments and fulfil the agreement.
Credit and Income Considerations
PCP lenders tend to be more conservative due to the risk involved, which can make it harder to secure a deal with a lower credit score. However, We Finance Any Van works with a range of specialist lenders who consider all applications, regardless of credit history, to help you find a suitable deal.
For Specific Situations:
- Bad Credit: If your credit score has been negatively impacted by missed payments, debt, or bankruptcy, you might face more challenges. We offer a bad credit finance service to help those struggling with their credit score find PCP options.
- Low Income: If you’re concerned about your ability to secure a PCP deal due to low income, we can help you find a deal that fits your budget. Note that a lower income may reduce the amount you can borrow and the type of van available to you.
- First-Time Buyers: If you’ve just passed your driving test and are looking for your first van, a lack of credit history might be a barrier. Demonstrating a stable income can improve your chances. Additionally, considering a guarantor—someone with a strong credit score—can strengthen your application and expand your vehicle options.
- Self-Employed: If you’re self-employed and need a van, having a good credit history and proof of income stability is crucial. PCP is often a good choice for self-employed individuals due to its flexible payment terms and the ability to drive a reliable and stylish van.
If you’re unsure whether you fit the eligibility requirements, get in touch with our team today.
Is PCP right for me?
I’m struggling with a bad credit score and have been rejected by other lenders:
Whether you’ve missed a payment for a previous loan, have dealt with excessive debt, or even experienced bankruptcy, there are several factors that can negatively impact your credit score. This can act as a barrier for future finance applications, presenting you as a potentially high-risk candidate.
At We Finance Any Van, we offer a bad credit van finance service for anyone who is being held back by their credit score.
I’m a low-income earner and am worried about my chances of securing a PCP deal:
When you apply for van finance, the lender will review your debt-to-income ratio. This is effectively the amount of your income that will go towards paying back the loan. Any concerns around your ability to comfortably cover your financial obligations can hinder your chances of approval.
Don’t panic! We will work with you to find a suitable deal for your situation, whether that’s PCP or an alternative finance option.
One thing to bare in mind is that having a lower income is likely to reduce the amount you can borrow and therefore the type of van you are eligible for. This is to help you better manage your budget and prevent you from falling into financial strain.
I’ve just passed my driving test and looking for my first van:
If you’re a young driver, this will likely be your first time applying for van finance. Without having an established credit history, or being able to show a track record of responsible borrowing, you may face a few more hurdles.
Demonstrating a reliable source of income can help to improve your chances of success, although you may be subject to higher interest rates. If you have the funds in place, PCP finance could still be the option for you.
Plus, this type of agreement often comes with maintenance coverage, reducing the financial burden of having to fork out unexpected repair costs.
Have you considered using a guarantor?
This is someone who is willing to take on the responsibility of your loan if you fail to meet the repayments. They will need to have a strong credit score and stable employment. For many first-time buyers, a guarantor can be a great way to strengthen your PCP application and give you access to a broader range of vehicles, helping you to secure a higher quality or more expensive van.
This works in the same way as any other PCP agreement, with the guarantor’s obligations ending once the contract has been fulfilled.
I’m self-employed and in desperate need of a mode of transport:
As long as you have a good credit history and can provide documents that verify your income stability, you shouldn’t face too many setbacks with your PCP application. Lenders often prefer you to have been self-employed for a certain period of time, usually around 2 to 3 years, although this isn’t always the case.
With fixed budgeting and flexibility at the end of the agreement, PCP is often the perfect option for self-employed drivers. Plus, having the opportunity to purchase a newer, more reliable, and stylish model can help to enhance your professional image, especially if you are running your own business.
As always, we will be on hand to help you navigate any bumps in the road.
I want to purchase a used van - can I still get a PCP deal?
Yes! Although PCP finance is ideal for those looking to buy a new van with all the latest gadgets, it can also be used to purchase a pre-loved vehicle.
Eligibility for Used Vans
While PCP is often associated with new vehicles, many lenders are open to financing used vans, provided they meet certain criteria. Generally, vans that are under 5 years old and have reasonable mileage are more likely to qualify for PCP. Some lenders may be cautious with older or higher-mileage vans due to their residual value being less predictable, but there are still plenty of options available.
Factors to Consider When Choosing Between New and Used Vans:
- Budget: Consider not just the purchase price, but also running and maintenance costs.
- Usage: The requirements for a van used for daily commuting might differ from one needed for long trips.
- Depreciation: New vans typically depreciate faster than used ones, especially in the initial years.
- Features: While new vans come with the latest tech and safety features, many recent used models also offer advanced features.
PCP finance allows you to enjoy lower monthly payments, which can be appealing if you’re aiming for a newer van but are concerned about costs. As the age of the van increases, the cost of PCP may decrease slightly, but it remains a viable option if you’re keen on managing your payments.
If you’re set on buying a used vehicle, we have access to a variety of lenders who specialise in used van PCP deals. We can help you find the best possible financing options for your chosen van.
Can I get PCP with any van dealer?
Yes, Most Likely!
At We Finance Any Van, we strive to make your van purchasing experience as smooth and enjoyable as possible. Our simple, 3-step system quickly connects you with the right vehicle without the hassle. As long as the van dealer is FCA authorised, we will do our utmost to work with them!
PCP is a widely accepted financing option, so most van dealerships offer it. We work with a broad network of FCA-authorised dealers, ensuring you have access to a variety of new and used vans through PCP. In our van search portal, we have thousands of new and used vehicles to explore.
What if I want to sell the van to someone else - can they take over the loan payments?
In a PCP contract, you cannot directly transfer the loan to a new owner.
During the term of a Personal Contract Purchase (PCP) agreement, you do not legally own the van until you make the optional final payment. As the van is technically owned by the lender, you cannot sell it or transfer ownership without their consent.
If you need to part ways with the van early:
- With Lender’s Approval: You may be able to sell the van, but the payment should typically be sent directly to the lender. Any damage to the vehicle should be disclosed, as failure to do so might reduce the payout amount. When selling privately, any remaining finance balance must be settled before the sale.
- Part-Exchange Option: Another alternative is to part-exchange the van for another model. The value of your current van can be used as a deposit towards the new one. This is known as ‘equity,’ which is the difference between the van’s value and the remaining finance balance. Be aware that in the early stages of the contract, the van’s value may be significantly lower than the remaining finance balance.
Information overload? Don’t worry – our dedicated team is here to guide you through the entire process, whatever you decide to do.
What are the minimum and maximum payment periods for PCP?
PCP payment periods typically range from 24 to 48 months.
This refers to the length of time you’ll make regular monthly payments, which is agreed upon at the start of your contract. Your ideal payment period depends on your individual circumstances, including budget and financial goals.
Here are some key considerations:
- Longer Periods: Lower monthly repayments but may result in higher total interest over time. The van is likely to experience less wear and tear.
- Shorter Periods: Higher monthly repayments but quicker repayment and potentially less interest. Popular among those who wish to pay off the loan faster.
Payment periods may vary by lender, so it’s essential to review your options and consult with us to determine the best plan for you based on your financial situation and preferences.
Am I able to pay off my PCP van finance agreement early?
Yes, you can pay off your PCP van finance agreement early. Whether you want to own the van outright or simply eliminate your financial commitments, paying off your PCP agreement early can be a viable option if you have the necessary funds.
Here’s how it works:
- Obtain the Settlement Figure: This is the total amount required to pay off your agreement early. It includes the remaining balance on the van, adjusted for the amount you’ve already paid and any applicable early termination fees.
- Choose Your Option:
- Become the Legal Owner: After paying the settlement figure, the van is officially yours.
- Return the Van: Alternatively, you can return the van to the lender, though this might include additional charges for excess mileage or any damage beyond normal wear and tear.
Important Considerations:
- Early Termination Fees: Check for any fees associated with early repayment. These fees may vary depending on your lender and the specifics of your agreement.
- Condition of the Van: Ensure the van is in good condition to avoid additional charges for damages.
Before proceeding, contact your lender to get the most current settlement figure and discuss any potential fees or conditions associated with early termination. This ensures you are fully informed about your options and any financial implications.
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About Us
If you are looking for van finance, you are in the right place!
We have years of experience in van finance, a very extensive lending panel & a team set up to get you the van you want at the best finance rate possible. If you have already found a van and just need the finance – great! If you need help finding a van then we are there for you as well – in fact, we have access to over 100,000 vans.
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