There are many different options available for financing the purchase of a used van. The two most popular ways to finance a used van are through traditional lenders and leasing companies. Most traditional loan companies will not approve someone unless they have a strong credit history or offer collateral for their loan. This can make purchasing an automobile difficult if you do not meet those requirements.
There are also two major advantages to using traditional loans; these include low-interest rates and long repayment periods (usually 30 years). The lengthier repayment period is beneficial because it allows the individual more time to pay off their debts and avoid paying high-interest rates.
However, traditional lenders usually require that you have a stable job and monthly income in order to receive approval for a loan. They also decide how much they will disburse to you based upon your credit history and how much collateral you are willing to put down towards the loan.
Another method of financing a used van is using a leasing company. Leasing companies offer individuals newer models at a fraction of the price by signing a leasing contract. Once the contract period has ended, the individual must return the vehicle or buy it from the company at its fair market value (the price it would be sold for less depreciation).
One advantage of leasing over traditional loans is that regardless of one’s credit history or employment status, a leasing company will approve a contract as long as the individual makes their monthly payments on time.
Take a look at this infographic for more information.
Infographic Created By Your New Van