Credit Capital

Looking For A Great Van Finance Deal?

We help everyday Australians find, compare and secure car loans in record time.

Find Your Perfect Future Home

Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.

[contact-form-7 404 "Not Found"]

Find Your Perfect Future Home

Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.

[contact-form-7 404 "Not Found"]

The Ultimate Guide To Van Loans

car logo

Chapter 1

What Is a Van Loan

Chapter 2

How to Compare Van Loans

Chapter 3

Ways to Get Lower Interest

Chapter 4

Van Financing for Small Businesses: Important Factors to Consider

Chapter 5

Van Financing on Bad Credit

Chapter 6

Does Applying for Van Financing Affect One's Credit Score

Chapter 7

Is Van Finance Available for Self-Employed Individuals With Poor Credit Score

chapter 1

What Is a Van Loan

Most lenders, like banks and finance companies, favoured vans as a popular type of asset. Normally, vans are classified as a good risk because they are easy to value. Borrowers are being conscientious in repaying their vans because these are important to them. As a result, many competitive lenders are engaged in this sector.

 

Financing is available for a new or used van. There are more competitive rates offered by lenders to buyers wanting to purchase a new van. This is because a new van is considered to be lower risk and interest rates are lower. It keeps its value all throughout the loan term.

 

On the other hand, if you wish to get a used van for financing, the lender can still use your van as collateral. This is when you decide to get a secured loan. Only, you need to be aware of the possible restrictions on the age of the van you can use. Typical lenders may require for a two to five-year old-van at the time of application. Other lenders may state that at the end of the loan term, the van cannot be more than ten years old.

chapter 2

How to Compare Van Loans

When you apply for a van loan, it is important to take into consideration the following:

 

Loan term. Decide if you will go for a short-term or long-term loan. When you choose a short-term loan, it can lessen the amount of interest you pay on your loan and at the same time get your debts paid off quicker but your monthly payment increases. Moreover, if you decide for a long term loan, you can have lower repayments but the amount of interest you pay overall gets higher. Choose a suitable loan term for you.

 

Interest rate. Know the interest rate being offered to you. The interest rate of your loan affects the amount of your repayments. Make a comparison of different loans and get the best deal for you.

 

Minimum repayments. Before you apply, find out your minimum repayment amounts and ask yourself if your income and budget can shoulder the repayments.

Insurance requirements. Your vehicle may be used as collateral by the lender. Thus, it is well-insured all the time until you finish paying the loan in full.

chapter 3

Ways to Get Lower Interest

Have a good credit history

There is a possibility for you to get a great deal and low-priced car loan with a good credit history.

Be in stable employment

The lender is expected to see you as a financially stable customer if you don’t change employers regularly (i.e. you stay in your job for many years).

Offer a deposit

You may create equity in your asset by giving a deposit either from your savings or in the form of trade-in. By doing this, you’ll be able to lessen your repayments because you only borrow a smaller amount of money from the lender.

Negotiate

You may ask the lender for a discount on your interest rate or request them if fees can be waived. Some lenders may work out a cheaper van with you.

Shop around

You don’t have to say yes right away to the first low-interest loan offer to you. Consider other loan options and prepare yourself to ask about loan terms, fixed /variable rates and the like. Surely, you’ll get the best deal.

chapter 4

Van Financing for Small Businesses: Important Factors to Consider

Choosing to get/buy a new commercial van for your business (SME) can be a rather tricky endeavour. For one, you will need to put the cost of the van, insurance, and tax, among other factors, into consideration before going ahead with the idea. Another option would be to lease one. If you, however, are torn between buying and leasing, here are a few key considerations before making the final decision. Factors such as why you need the van and insurance should also be considered as well.

1. Know the Reason for Financing a Van

The reason for having the van, and how (where) it will be used should be considered when deciding between leasing and buying. An excellent example of this is if the van will be used at a construction site or a potentially ‘dangerous’ environment. The risk of it being bashed or dented is rather high, which could also mean extra expenses and fines from the leasing company. You would also be required to be upfront with the leasing company each time you wish to use the van for a different mission. Most companies will also restrict use and mileage on their vans until fully paid for too.

 

Buying the van, on the other hand, means you can use it however/whenever/wherever you wish without seeking anyone’s approval. Only the insurer should know how the van will be used. This makes ownership a better option if, for example, looking to use the van in construction sites.

 

Take into consideration how the van will be used, and the risk factors when choosing between leasing and buying. Most SMEs will, in most instances, prefer leasing, and especially if looking to maintain an image.

2. Weigh Your Options (Leasing vs. Buying)

Buy: This simply means purchasing the van outright. Although this will take up a large chunk of money from your bank accounts, it is a one-off investment. The other good thing about buying the vans is that you have the freedom to sell them off as soon as their work is done. As a rule of thumb, any vehicle will start depreciating as soon as it hits the road (from the dealer). Owning the van, however, means you don’t have to deal with leasing companies and their restrictive contracts.

Lease: A typical lease lasts around three or four years. You, however, have two options should you choose to go this route: financial lease and hire purchase.

Hire purchase: You will be required to put a down payment, then pay a set amount of money each month for a said period. You also have an option to purchase the van (at a small fee) at the end of the contract.

Financial lease: With this option, the dealer remains the owner of the van during the life of the contract. You, however, have a leeway into how you pay for it. You could choose to pay the total cost of the van, plus interest, within an agreed time. You could also choose to pay lower ‘monthly rental’ fees with a final balloon payment (estimated resale of the van at the end of the lease).

Leasing enables you to pay a deposit each time you wish to upgrade, which again means you can get a new and more efficient van each time. It also eliminates the risk of depreciation, or the need to get rid of the older van. In other words, leasing is a better option if looking for a cheaper way to have/use a van without necessarily owning it. Buying is, however, a preferred option for those looking for limitless mileage and long-term ownership plus use.

3. Think About How You Want to Modify the Van

Do you wish to add modifications to the van? Some of the typical changes, such as decals, racks, dash cams, etc., are considered small and reversible, hence could be allowed by the leasing company. Any irreversible modifications should only be done if looking to buy the van at the end of the lease period. There are lots of ready-to-work options available for smaller fleets, something a small business can take advantage of.

4. Window-shop for the Best Van Your Business Needs to Have

Many car manufacturers and major firms will have specific business centres where fleet buyers can walk in and take advantage of various offers. Take time to visit different vendors and dealers to see what they have to offer. If looking for more than one van, you can then look for companies that specialise in business fleet leasing for a more convenient solution. You could get several vans at a bargain and a cost-effective contract too.

 

Shopping around also increases the chances of getting yourself the latest vans, as well as larger vans ideal for various uses. Larger vans are particularly ideal for specialised ranges in trade (e.g., electrician ranges), as well as transporting goods. It is also by window-shopping that you can identify potential dealers you would go to in the future. For those dealing with hundreds of vans per year, contacting the manufacturer directly can not only get you a good deal but also have the vehicles custom-designed to your requirements and specifications.

5. Consider Trade-In or Part Exchange

Some dealers may let customers to part exchange or trade-in with a new van. One of the best ways to do this would be through a specialist car-buying website, a dealership, or even a broker.

6. Read and Understand Lease Contract Limits

You are more likely to face mileage restrictions and limitations on what you can and cannot do with the van during its lease period. Although these may come standard, it would be best if you looked a little more closely in their terms and conditions, and particularly the manufacturer’s inclusions and breakdown cover. You’ll also be required to sign to a binding 3- or 4-year contract with the company. Choosing to end the agreement early will only result in penalties on your business as well. That said. You might want to weigh between leasing and buying the van. Take vehicle costs, tax, and insurance into consideration if looking to buy the van. Leasing the van may, however, mean not paying for insurance, as the dealer will have taken care of that.

chapter 5

How to Compare Car Loans?

finance

Don't focus on rate

We hear it all the time. When people shop around for finance, they call up a range of brokers and finance companies and ask, “What is your rate?”

 

Although interest rates are an important factor when it comes to comparing loans, it is only one of many factors.

 

The lowest interest rate isn’t always the best deal. There are many dealerships that offer 0% finance options that prey on people who only focus on rate.

 

These 0% finance offers usually have very restrictive terms, but most importantly, they will usually charge you more for the car than they would if you weren’t taking the 0% finance.

 

The important thing when comparing is to look at the overall package. All lenders have different set up and on-going fees and different early exit fees as well.

 

The main thing to focus on is your bottom line. Your monthly repayment, inclusive of all fees, is the best indicator when comparing.

We compare more so you save more

At Credit Capital, with access to more than 25 of Australia’s major automotive finance lenders, we compare more so you save more.

 

We are independent and privately owned, so give unbiased advice when it comes to getting you the best deal.

 

We work for a flat service fee which is included within the set up costs of your loan, and the fee doesn’t change if we attain a higher or lower interest rate for you.

 

This makes it very easy for you to compare our repayment with others to see which deal is best for you.

 

You don’t pay anything up front, and the fee is only applied if you get a loan through us, meaning if we don’t earn your business, we don’t get paid. This makes it in our best interest to get you the best deal, every time, so we can earn your business for life.

industry
chapter 6

How to Lower Interest Rates?

Rate for risk

It’s a saying you’ve probably heard so many times by now that it’s almost lost all meaning.

 

But when it comes to finance, the interest rate the lender applies varies based on the risk of the application.

 

The higher risk the application, the more likely you are to default, or the less likely the lender will be able to recover their loss if they have to repossess the car, the more the lender has to charge to offset their risk.

 

Lowering your risk

To lower your interest rate you need to lower your risk. There are many factors that lenders look at when calculating the risk of your application.

 

How long have you been in your job? Are you full time employed? Part time? or casual?

 

Residential history is important as well. Whether you’re renting, boarding, have a mortgage, or own your property outright, are all taken into account by the lender to calculate your risk.

 

Some factors you won’t have much control over, there are some things though that you can control.



How to lower risk

  1. Type of car – Lenders see new cars as lower risk compared with used cars. This is due to the fact that a brand new car will hold more value, therefore the lender will have a greater chance of recovering their loss if they have to repossess the car. Also new cars generally have lower running costs, so the fact you will less likely receive unnexpected maintenance bills during the life of the loan means it is more likely you will be able to keep up with the repayments on your loan.

 

  1. LVR (Loan to Value Ratio) – The loan to value ratio is calculated based upon the amount of money you are borrowing vs. what the lenders believe the car is worth. LVR is calculated as a percentage e.g. if LVR is 110%, that means you are borrowing 110% of what the lenders believe the car is worth. The lower the LVR, the lower risk the application is for the lender, as they will have a much greater chance of recovering their loss if they repossess the car. Factory accessories are usually taken into account when calculating LVR, however aftermarket accessories are not. If you have your heart set on a car that has been heavily customised by the previous owner, be prepared you may have to pay a higher rate as the LVR will probably be higher.

 

  1. Deposit – By providing a deposit towards the car you can significantly lower the risk of the application. By doing this, you’re not only reducing LVR, but you’re also showing some commitment from your end. If you commit some of your own hard earned savings to the car, rather than just spending all of the banks money, you’re demonstrating your devotion to paying for the car.
chapter 7

Ways to Reduce Your Monthly Repayments

Borrow less

It may sound simple, but the less you borrow, the lower your repayments will be. If you save money on the purchase of your car, or if you put deposit towards the loan, you will be reducing your repayments from day1.

Extend the loan term

Many lenders these days will allow you to finance the car up to 7 years. The longer period you extend the finance for, the lower your repayments will be. This can be a great option if you don’t want the repayment to have as much of an impact on your budget, however a longer term can also mean you will pay more in interest. Speak to one of our professional consultants today to get free general advice on what might work best for you.

Residual/Balloon payment

By having a residual or balloon payment at the end of the loan, you will be making payments on a smaller amount over the life of the loan. Just make sure you plan ahead and you have certainty around how the balloon will be paid at the end of the loan.

Refinance your car

We’ve all been there before. Buying a car is an emotional purchase, and in the heat of the moment it can be easy to be talked into signing up and paying more than you should for something that you just need to have right now. Maybe you previously had credit issues, and now you’ve got things back on track you want to get out of your bad credit loan and into a good credit loan. We make refinancing easy. Talk to one of our consultants today to see how much less you could be paying on your current loan.

chapter 8

How to apply for a car loan

1. Find out your budget

Before approaching any lenders or searching for cars, the most important thing for you to know is how much you can afford each month for your car. This includes not just the repayment for the loan, but also your insurance and running costs for the car as well.

2. Choose what do you want

Whether you have a specific asset in mind, or just a set of requirements you needs to fulfil, everyone has different wants and needs when it comes to taking out finance. The more you can let us know about what you want or what you need, the better we are able to fulfil your dream.

3. Prepare Documentation

When it comes to taking out finance, there is no such thing as too much documentation. We will always strive to make the process as smooth as possible with the minimum amount of documentation, however, the more prepared you are, the quicker we can make the process for you. Be prepared with IDs, residential and employment histories, payslips, or tax returns and profit and loss statements if you’re self-employed. The more prepared you are the more efficient we are.

4. Speak to a Professional and apply

Once you know the above, enquire online or call us directly and we can help you with the rest. If there’s anything above you need assistance with, not to worry, our devoted team can answer all your questions and find the deal that best suits your requirements. We can guide you along the way no matter how early, or late, in the process you are. We put your mind at ease and make finding the best deal easy from start to finish.

The Best Partner to Find
New House.

Nam libero tempore, cum soluta nobis est eligendi optio cumque
nihil impedit quo minus id quod maxime placeat facere possimus.

The Best Partner to Find New House.

Nam libero tempore, cum soluta nobis est eligendi optio cumque
nihil impedit quo minus id quod maxime placeat facere possimus.