What are the Volkswagen Van Finance Options?
Whether it’s the Volkswagen Caddy Life for your personal business needs or a fleet of VW Transporters for your team of contractors, VW the German manufacturer is responsible for some of the best vans on the market. But while finding the perfect vehicle is a crucial starting point, it’s equally vital that you get it at the right price.
Here at Sinclair Volkswagen Vans, we offer a range of finance options on new and used Volkswagen plans. Here’s all you need to know.
Volkswagen Finance Options for Personal Use
When buying a VW van for personal use, there are two main options at your disposal.
Perhaps the easiest finance agreement to understand. The first step is to pay a deposit, which can be as little as the equivalent cost of one monthly repayment but is often set to 10% as a buyer preference. This is followed by equal monthly payments set over a period of 1-5 years.
At the end of the agreement, you will be offered an ‘option to purchase’ fee. If you take this, the car will be fully under your ownership.
Personal Contract Plan
PCP is a flexible repayment plan that starts with a deposit, which can be as little as one month’s repayment. Following this, monthly payments will be arranged for a period of 18-49 months while a percentage of the van’s value is deferred until the end of the agreement.
When this time comes, you can either buy the car, return it, or trade it in for another mode.
Volkswagen Finance Options for Business
Given that business clients are likely to have greater needs, including the need for several vehicles, means that there are a greater number of options. For starters, business clients can use the hire purchase agreement. However, there are several alternatives. They are:
The rental agreement is one in which you’ll never own the car but will simply pay a set rental price for a period of 1-5 years. The only other charge is a one month’s deposit at the start of the agreement.
This is great for businesses that will want to update their fleet every few years.
Finance leasing is a rental agreement that works in a similar way to contract hire. However, at the end of the agreement, you’ll have the option to renew the rental agreement or sell the vehicle through Volkswagen Commercial Vehicle Financial Services to receive a cut.
Alternatively, you can choose a plan that uses a balloon payment at the end. Again, this provides the option of renewing the rental or gaining some of the sale price.
A lease purchase works in a similar fashion to the contract hire agreement. However, after settling the balloon payment at the end of the agreement, you’ll own the vehicle and be able to sell it. Using a balloon payment does reduce monthly repayments.
The rental agreement can be set for 1-4 years while the initial rental deposit can be as low as one month’s payment.
Which Is Right for You?
In truth, there is no single right answer, which is why you need an expert to help find the perfect solution for your specific needs.
Whether you need help finding the right vehicle or the best repayment plan, Sinclair’s Vans are here to help. We are the premier VW van service in Wales, so give us a call today.