Van Finance

We help you choose from a variety of vans on the market and your choice of finance. At Pentagon, we take the hard work out of finding the best van finance for your next purchase. Our Specialist Automotive Finance approved team members are available to guide you through the process. So, you get great value for money and monthly payments to suit your business.

Our panel of accredited lenders offers:

• Fixed rates – Your monthly costs and interest rates are fixed. So there’s no worry of surprise charges. 
• Low or no deposit – Choose the right van for your business – all for a small deposit of £99. Plus, some agreements don’t require a deposit at all. 
• Easy application – Say goodbye to form filling. All we need is a few details and proof of your driver’s license before you collect your van.

We offer four main types of van finance for business:

Personal Contract Purchase (PCP) – Van finance with low monthly payments and an optional balloon payment at the end to purchase the vehicle. 

Hire Purchase (HP) – Like a traditional loan, this covers the total price of the van plus interest and is split evenly over the agreement term. The van is yours after the final payment. 

Business Contract Hire (BCH) – This type of lease agreement covers a specific period. After the final payment, the van is returned to the van leasing company.

Finance lease – This type of finance gives the option of terms similar to PCP or HP but is only available to business customers. 

Discover more information on what type of van finance is best for you below. 

PCP or Personal Contract Purchase is a flexible business van finance option. It works like a traditional loan. But, the payments are generally lower with an optional balloon payment at the end. The final price is based on the car’s anticipated value. So, when this is calculated, you can choose to keep the vehicle or return it to the finance company. 

Benefits of PCP

• Low monthly costs – Payments are fixed and typically lower, which is ideal for all budgets. You can also spread them over a longer term or use a bigger deposit to reduce this even more. 
• Flexible terms – Everything from the loan term, deposit, and mileage are flexible to suit your needs. 
• End of lease options – Pay the balloon payment at the end of the lease for ownership of the van or hand it back – it’s up to you. 
• Regularly upgrade your van – If you need the latest van models for your business, this finance option allows you to trade in and get an upgrade every few years. 
  
• Protected from inflation and depreciation – There’s no need to worry about fluctuations in interest rates or depreciation, as your monthly costs are fixed and protected throughout the duration of your agreement.
  
  

Explore Personal Contract Purchase (PCP) Finance Here

If you’re considering owning a business van for longer than the loan agreement, hire purchase (HP) is a popular choice. This works like a traditional loan. First, the deposit you pay is deducted from the cash value. The remaining value plus interest is then split over the loan term. You can typically choose the term length, which varies from two to five years. After the final payment, you own the van. 

Benefits of HP

• Low monthly costs – Splitting the costs of the van equally offers an affordable and low-cost business finance solution. 
• Flexible terms – Select the deposit and agreement term to fit your needs. 
• No balloon payment – Pay a nominal fee at the end of the agreement, and the van is yours. No need to worry about a big balloon payment! 
• Low credit score friendly – HP is secured against the van. So, if you have a low credit score, it shouldn’t affect your chances of purchasing a new van. 
• No mileage cap – This finance covers the car’s total value, which means no mileage cap. 
• Protected from depreciation and inflation – Van monthly payments are a fixed amount. So, external market inflation or depreciation changes won’t spring any surprise charges on you. 

Explore HIRE Purchase (HP) Finance Here

BCH or Business Contract Hire is a type of finance that works like a lease agreement. There are fixed monthly costs, plus a mileage allowance over an agreed term. You return the van at the end of the contract, and there’s no option to purchase it. This is ideal for businesses looking to upgrade every few years. 

Benefits of BCH

• Drive the latest models – Lease the latest vans for a few years, then hand them back and upgrade to your business.
• Low monthly costs – BCH finance deals typically have lower monthly costs compared to other finance options, and they’re ideal for any budget. 
• Maintenance included – Take the hassle out of servicing and maintenance with finance deals that cover all this in the monthly cost. 
• Fixed costs – Monthly costs are fixed and protected against inflation and depreciation. 
• No reselling hassles – A BCP lease takes the stress away from reselling your van. Just hand it back and upgrade with ease. 

A finance lease enables you to choose a new van for your business without making a capital investment. This type of van finance offers companies the choice of low monthly payments with a balloon payment at the end. Or instalments based on the entire cost of the vehicle, plus interest over an agreed term. However, these options are only available to business customers. 

Benefits of finance lease for vans 

• Fixed payments – Payment stays the same throughout the agreement, so no surprises. 
• Low initial costs and instant access – At the beginning of the finance lease, a small charge gives you immediate access to a van. 
• Claim back up to 100% VAT back – Reclaim between 50% and 100% of the VAT back on a commercial vehicle (for VAT-registered businesses). 
• Flexible payment terms – A flexible repayment option gives you scope to budget according to your cash flow. 
• Fixed or variable interest rates – Choose between fixed or variable interest rates to suit your business. 
• No mileage limit – Finance lease has no mileage limits, so there is no need to worry about mileage excess charges. 
• Receive 98% of the sale proceeds – You don’t own the van in this agreement, but if it’s sold to a third party at the end of the lease, you get 98% of the proceeds. 

Van finance companies utilise data to determine your eligibility and credit score. This information may also establish your interest rate and loan amount.

To find out more about credit ratings and the factors that affect them, visit our credit rating page.