4 Most Favorable Van Finance Methods for VW Transporter

4 Most Favorable Van Finance Methods for VW Transporter

Vans are an integral part of the logistics chain of any business. Not only do they guarantee prompt merchandise delivery, but they also ensure that goods reach their owners in one piece. With the current online purchase surge, a company requires an efficient mode of transport that guarantees rapid deliveries compared to competitors. 

In addition, you should consider proper van size and how to pay for it. One of the most preferred company vans is the luxurious VW Transporter, famous for its comfort and spacious cargo space. Find out more about some of the most convenient financial options suitable for commercial or personal vehicles. 

1. Hire Purchase

Hire purchase remains one of the least complicated ways to own a car. You only need to choose your preferred vehicle, pay a minimal discount, and sign an agreement on how to clear the balance. Most hire purchase companies requests payments every month for a certain period. 

Depending on the type of VW Transporter, you can pay within 1-5 years. After clearing your monthly installments, you can either keep, trade-in, or sell the vehicle. The beauty about hire purchase is that clients get to own the car in the long run.

Moreover, there are no mileage limitations because the selling company does not restrict how much you drive. With the convenience of paying monthly, the client is more at ease and can concentrate on other critical tasks. Above all, a hire purchase allows one to choose a flexible payment plan to suit their needs.

2. Contract Hire

While some companies invest in fleets of vehicles, others prefer hiring instead. Contact hires allow companies to drive VW commercial vehicles at monthly rental fees. The plan is ideal for customers not ready to feel a depreciating asset’s pinch and prefer making monthly payments. In short, clients only use the vehicles for a stipulated time before handing them over. Compared to hire purchase, you need to consider mileage covered because it determines your monthly installments.

Another thing you need to consider on the monthly rentals is the maintenance and servicing costs. You can hand over the car after paying all the outstanding monthly rental charges subject to excess mileage costs and any breakages. 

The brighter side about the contract servicing agreement is that you can choose various servicing levels depending on your preferences. Also, it is possible to claim back tax charged on contact agreements. Note that you are using the vehicle on a leasing deal. Therefore, you do not have to incur charges even if the vehicle depreciates. Instead, all you need to do is update your choice to the latest and most comfortable model.

3. Lease-Purchase

Lease purchase is best suited for clients on the lookout for long-term vehicle ownership compared to contract hire. The advantage of this arrangement is that you get to reduce your monthly repayment. A reliable lease purchase company calculates monthly installments and then gives a compiled cost. 

Before anything else, consider how much you are willing to spend on the initial deposit. Then mull over how long you want to keep the contract and the miles your company makes annually. Remember that when the contract comes to an end, you are expected to pay the accumulated amount to continue using the car. Another option is to trade in with a better and newer model.

4. Finance Lease

There are two different kinds of finance leases: full payout and balloon plan. The full payout arrangement gives a client a chance to share sales gains at the end of the contract.  After the end of the agreement, you can either renew another annual rental period or sell out the car on behalf of Volkswagen. As a result, you can take some commission home from the sales. On the other hand, the balloon plan forwards a specific chunk of money to the end of the agreement. 

Bear in mind that the amount has to be paid even if the proceeds from the car sale cover it. After the agreement expiry, you can also trade the vehicle on behalf of the lease company to selected third parties. From the proceeds, you can then settle the final payment and receive a sales surplus. Another option is to get into another annual rental and retain the car. 


Examining various funding options for a business vehicle is vital in minimizing losses. We can agree that each of the plans mentioned above has its pros and cons. However, your final decision depends on the goals you hope to achieve. For instance, do you want to enjoy overall control over a car or prefer making monthly repayments? Furthermore, would you prefer sharing the sales proceeds or taking the car home when the contract expires? The bottom line is to ensure that the plan helps your brand meet the set objective without incurring losses or failing to meet your client’s expectations.

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