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Van Hire Purchase



Often when it comes to buying a van, the only way to for many is by using van hire purchase, effectively borrowing money to buy their vehicle. However, van hire purchase is however more than that as even though many see it as simply a loan it could be one of the best ways to buy a vehicle because while you may be making monthly payments on the vehicle, you're also left with a great deal more cash in the bank!

Today, many people consider van hire purchase as an extended leasing system and for some people they use it as such. Instead of paying off the vehicle before they buy a new one, they simply find a dealer, take out a hire purchase agreement and then when they feel like upgrading their vehicle, they offset the value of the old vehicle against the new one. While it's a little complicated, many people think it's one of the only ways to own a relatively new vehicle.

While it may be perfect many, it doesn't work for anyone and there are actually many alternatives to van hire purchase. Why struggle with monthly payments and vehicle de-valuation when you could simply take advantage of commercial van leasing. It's often more affordable because while you may have to pay a slightly higher monthly fee than van hire purchase, the vehicle comes with free maintenance insurance and more. When you calculate it all, sometimes you can end up saving a great deal when compared to taxing, insuring and then watching your van de-value.

Ultimately however, van hire purchase is still the popular option for many people because quite simply, they like the feeling of security that 'owning' a vehicle gives them. However, the reality is that every moment you own a hire purchase vehicle; its value depreciates. Before you take the dealer up on a hire purchase agreement, be sure to ask yourself the question 'Would I be better with leasing?'

Indeed, there are many alternatives to van hire purchase and while it's often a better choice than buying an older vehicle, it isn't always the best solution. Even if you need the vehicle on a daily basis, there are many alternatives to hire purchase which may in fact work out cheaper.

Before deciding on what you'd like to do, it's important to take a look at what all the options are. Firstly, work out what the monthly cost of van hire purchase would be, and then add into that insurance costs, tax, maintenance and when you're done remember that you've also got to consider how much the vehicle devalues each month.

Taking it all into account, van hire purchase certainly has its drawbacks. One of its main advantages is however that the vehicle is essentially 'yours'. However, it's important to remember that what they say about how much lose driving a vehicle off the show room floor is true. With van rental, you have none of this to worry about, you just need to pay the lease and buy the petrol.


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