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.