How does it work?
There are several different kinds of car or van finance products available in the UK. It’s important you make the right choice for your circumstances, so be sure to do your research before deciding on a finance package.
Oodle offers an unsecured personal loan (UPL) product, but you can compare finance options in the types of van finance section.
If you choose to finance with us, you're free to find your van wherever suits you best. Whether you're after an electric or automatic van, we can help with the finance.
Van finance if you’re self-employed
Types of van finance
Typically, there are a few ways to buy a van. Each option comes with its own advantages and disadvantages. The best choice for your van finance will depend on your circumstances.
Van loan
A van loan, sometimes called an Unsecured Personal Loan (UPL), is a financing option where you borrow a lump sum of money to buy a van and repay it through monthly instalments, but you’ll own the vehicle from the start. While no upfront deposit is required, it’s important to note that the interest rate and monthly payments can be higher than with other van finance options, depending on your credit score.
Hire purchase
Hire purchase (HP) is where you make a regular monthly payment for a van with a fixed interest rate – meaning you know exactly how much you are paying every month. The deposit can be flexible or even not required at all. The van is owned by the lender until you pay the last monthly instalment and the option to purchase fee.
Personal contract purchase
Personal contract purchase (PCP) allows you to buy a van through fixed monthly instalments, like hire purchase. PCP tends to have lower monthly payments as you don't have to pay the van's total value. But should you decide to keep the van at the end of the agreement you will need to pay a substantial ‘balloon payment’ to purchase it outright.
Personal contract hire
Personal Contract Hire (PCH) is a flexible leasing option that lets you hire a van for a fixed term with manageable monthly payments and an upfront rental fee. You get full use of the vehicle during the lease, but keep in mind you'll be responsible for upkeep costs. You then return it at the end - there’s no option to buy, making it ideal if you prefer driving the latest models without long-term ownership.
Whether you’re after your dream van, thinking about switching to electric, or just need a bit more storage space an Oodle Van Loan could help you cover the cost.
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Will I be eligible for a van loan?
If you are 20 or over, live in England, Wales & Scotland and you can afford to make the repayments, then you are in a strong position to be eligible for a van loan. Other factors that affect your eligibility include your credit score, your income, and the specific criteria of the finance provider you choose.
Is it hard to get van finance?
Getting van finance isn’t necessarily harder than getting finance for any other type of vehicle. What matters most is your individual circumstances – things like your income, financial commitments, and credit history all play a part.
At Oodle, we look at the full picture to make sure the finance is affordable for you. So even if you’re not sure where you stand, we’ll do our best to help you understand your options.
Can I get a van on finance if I’m self-employed?
Yes, you can get van finance if you’re self-employed, the process just takes a little longer. This is because you’ll be asked to supply some extra information to confirm your financial stability, which could include recent tax returns, three to six months’ worth of bank statements, and details of your trading accounts (if you are a registered company).
Can I buy a used van on finance?
Absolutely! With an unsecured personal loan from Oodle, you can choose a used or new van from just about anywhere.
What credit score do you need to finance a van?
There’s no such thing as a minimum credit score that will guarantee you a finance deal, but the higher your credit score is, the better rates you can expect to be offered.
Do I need a deposit for van finance?
Depending on your finance agreement you may not have to pay anything upfront for car finance. Many lenders offer no deposit car finance options to make car ownership more accessible to individuals who may not have a significant upfront payment available. It might, of course, impact which vehicles are available for your budget or for the terms of your agreement.
Can I get a van loan if I’ve had bad credit in the past?
You don’t necessarily have to have a good credit score to be approved for car finance – but it helps! Some lenders are willing to help borrowers with a poor credit score, and a few even specialise in poor credit history finance.
So, if your credit score isn’t great, it doesn’t necessarily mean that you won’t be able to finance your car. It just means that you might have to shop around to find the right lender for you. Keep in mind that borrowing with bad credit may come with higher interest rates and monthly payments, so the overall cost of finance could be more.
Be careful though: if you’re struggling to pay off your existing debts it’s always best to get on top of these first before borrowing more. Talk to your lenders to make a plan to get your finances back on track. This will help to improve your credit score.
There are charities and organisations who can offer advice, help and support if you're in difficult circumstances. Find out more here.
