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Finance for vans: three key questions every dealer should ask their customers

In today’s uncertain economy, the old adage ‘time is money’ is really hitting home for many SMEs. Your customers are under increased pressure to stay competitive in a fast-moving market.

It’s in your best interests to help them finance the vehicles they need, helping them to grow their businesses – which in turn will help you grow yours. Securing finance for vans doesn’t have to be a challenge. To give your customers the best deal possible, you need to ask the following three questions.

  1. What’s more important to your customer: access or ownership?

Before offering your customers the right deal, you have to establish their priorities. You need to know what their business needs are and what finance is best suited to meet them.

If vehicle ownership is your customer’s preferred option, then discuss the benefits of hire purchase with them. This form of finance for vans allows your customer to pay for the asset in question over a pre-defined period of time. Deposit, repayments and repayment frequency are flexible. Your customers are also protected from any increase in interest rates because all terms are agreed upon upfront.

Or, your customers may want to avoid the hassle of ownership and have the option of upgrading their vehicle in three to four years. In this instance, it’s best to consider a finance lease. This option gives your customers access to the latest equipment for a low upfront cost as, unlike with hire purchase, the VAT can be spread across the length of the contract.

  1. How much use will the vehicle get?

This will play an important role in determining the best deal for your customer. Businesses whose mileage is likely to be under a certain threshold at the end of the contract term will benefit from a finance lease. The customer will have several options at the end of the contract, including putting the residual value towards a new van.

For businesses such as couriers that will be racking up a lot of miles, hire purchase is recommended as there is no cap on the vehicle’s mileage.

  1. What is your customer’s budget?

At the end of the day, budget considerations are critical – especially for small businesses with limited capital. Before making any decision, your customer will want to know exactly what their monthly repayments are – and the total cost of the contract. As a balloon payment further reduces monthly repayments, the customer could be able to afford a higher spec vehicle that will better serve their business. At the end of the lease your customer can either continue using the vehicle by paying nominal annual rentals, or sell it at a profit and receive part of the sale proceeds.

The right finance can overcome cost objections and help you build better, longer lasting relationships with customers who will return to you at the end of the contract, unlike with an upfront purchase. In turn, you can make sure they can afford the best possible van for their budget.

Our OptiVan Lease finance for vans is designed for SMEs, offering low upfront costs, no return condition recharges and flexible end of term options. Contact our team of experts to find out more.

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Suhale Vorajee
Head of Marketing and Communications
BNP Paribas Leasing Solutions UK

T: 01179 100 895
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