Van Buying Guide

Thinking about buying a van? You will have specific reasons for doing so – perhaps you own a business and need to transport goods quickly and easily; perhaps you are a private owner who simply wants more space to accommodate a large family. Whatever the reason, the process of buying a used van, new van or rental van is unique itself with many different methods and approaches when compared to buying a car. That’s why we have compiled a van buying guide – for motorists who want to get behind the steering wheel knowing they have secured a good deal. THE PROCESS OF BUYING A NEW VAN - IS BUYING A NEW VAN RIGHT FOR YOU? Before beginning your search for the best deals on a new van, think about whether buying a new van is right for you. Examine your financial situation and consider if you can afford to make monthly repayments. Do your driving needs make a van necessary? Generally speaking, cars will work out as cheaper options than vans both in terms of fuel economy and tag price. There are other charges to think about too – road tax is higher for the majority of vans than most cars, and congestion charges could be heavy. It’s important to consider all of these expenses into the equation before making your decision. However, if you decide that a van is for you, consider how you will finance your vehicle. If you want a new van, then leasing could be the best option. This will allow you to make smaller monthly repayments based on the residual value of the van. At the end of the term you can simply return the van to the leasing company and walk away, or you could opt to take out another new van on a fresh leasing agreement. Alternatively, you could secure a personal contract purchase agreement on your new van. This will give you the option to buy the van outright at the end of the term. THE PROCESS OF BUYING A NEW VAN – HOW TO SECURE THE BEST DEAL The key to securing a good deal on a new van is to prepare before you begin the buying process. Here is a checklist that you should follow: • Do your research – Make sure you know what you want before you approach a dealer. Think about the type of van you want – do you want a micro van, a 4x4, a pickup van or a large van? To decide, think about the purpose of buying the van – are you looking to haul goods, or perhaps drive around the family? Do you need a van that is fitted out with ply lining or refrigeration? • Specification – Before deciding on the right new van, research the options available in your price range and their specifications. Some of the factors to consider are: o Size – Remember that full-size vans are more difficult to manoeuvre. How big is your family or the goods you are likely to carry? o Fuel economy – Most vans have V6 engines, but there are smaller models available with four-cylinder capacity if you are looking for fuel economy. Generally speaking, the larger the van, the larger the engine (some are V8 and V10) and the higher the running costs. o Family-friendly – Does the new van include an entertainment system? Storage containers? Air conditioning? o Safety – Some minivans are among the safest vehicles on the road. However, you should research the crash test rating of any new van you are interested in. o Interior space – How many seats does your van have? o Cargo space – Bigger families should consider larger vehicles to ensure there is sufficient luggage space. Large vans are best for drivers with a lot of cargo to haul. o Operating costs – Micro vans will offer better fuel economy but larger vans can often be easier to maintain if repairs are necessary. o Van finance – Consider all of the methods of van finance – including loans and leasing. Van leasing will be best suited to those who like the idea of driving a new van every few years and who want lower monthly payments. Loans are the best choice for people who want to own the van outright and drivers that travel flexible distances. Bear in mind that leasing companies will impose a mileage restriction which they use to work out the depreciated cost of the vehicle – that is, what it will be worth at the end of the leasing term. If you exceed this mileage limit you will be hit with charges. Do not wait until you contact a dealer to establish your van finance. Shop around for the best deals online. There are many van leasing deals available online from website such as 1000vans.com. The LDV website also includes a large directory of brand new vans for sale. o Prepare yourself – Don’t just research the vehicle you want to buy – make sure you are armed with all of the relevant details about yourself too so you can’t be surprised by anything the van dealer tells you. In particular, you should find out whether or not you have good credit as every rejected van finance application will leave a footprint on your credit profile. Request your credit profile from an agency such as Experian or Equifax and if you have impaired credit, do all you can to build your credit rating before you apply for a loan. This can be done in a number of ways – by maintaining a fixed home address; being in steady employment by the same company for six months or more; paying bills on time under your own name. If you have bad credit you might also wish to consider a co-signer, although bear in mind that if you fail to make repayments you will hurt the co-signer’s credit as well as your own. Also think about if you can offer a trade-in or can make a down-payment on the new van. • Search online – Above all else, you should scout around for the cheapest prices for the new van of your choice and the quickest way to do this, is online. Rather than travel from dealer to dealer, you can search for quotes on the exact vehicles and specifications you want in minutes using the Internet. Websites such as whatvan? are an excellent starting place to find out what vans are recommended and which ones to stay clear of. Parkers is also an excellent website providing 5 star scale ratings on all vans and trusted prices to compare against. • Buy at the right time – Think about the best times to buy a new van. If you are buying from a dealer, this is usually the month before new registrations are introduced when many dealerships need to move excess stock to make way for new fleets. The Christmas period is also a good time to shop around as business is slow and dealers are eager to hit end of year targets. Much like the used car buying process, there are many pitfalls that await you unless you are savvy about buying a used van. This section of the van buying guide, will examine the things you should look out for and help you find not only a cheap used van, but the right used van for you. TIPS FOR BUYING USED VANS As with buying a new van, if you are in the market for a used van the first point to consider should be your budget. Remember to think about all running costs and your long-term goals with the van – will you still want this van if your current work or family circumstances change? Before you approach any used van dealer, or a private seller, you should establish in your own mind an upper limit as to how much you are willing to pay. Stick to it and don’t be persuaded to pay out more than you can comfortably afford. Here are some more tips for buying used vans: • Type and specification – As with a new van you should have a firm idea of what make and model of used van you want and what specifications you want it to have. Look around online and there are so many online directories that you now have a much wider scope when searching for used vans, so there is no need to settle for something that doesn’t meet your expectations. • Pricing – With used vans, you do not have suggested retail prices to follow. The cost of the van will vary based on its wear and tear, the number of miles it has on the clock, and its vehicle repair history. You should familiarise yourself with what similar models are selling for. If you are going to visit a dealer or a private owner, why not print off a quote for a van of the same make and model and use that to highlight that you could potentially find a cheaper deal elsewhere. • Standard of the vehicle – What features does the used van include? Does it come with air conditioning for example, electric windows or power steering (which is particularly important on large vans)? Do you need all-wheel drive – which is particularly useful if you regularly encounter hazardous driving conditions? What are the van’s safety features and how many miles does it get to the gallon? You should inspect the vehicle thoroughly before you buy. • Test drive the van – Test driving a used van is much more important than test driving a new van. Generally speaking, new vans should all be of a similar standard – but used vans can vary massively depending on how they have been driven in the past. There are many factors to look for on a test drive including: o Mileage – How many miles has the van traveled in the past? You should ask to see a full service history and if you feel that the mileage clock has been tampered with, look at the interior of the van to see if it shows more signs of wear and tear than it should. o Brakes – Test the brakes thoroughly by performing an ‘emergency stop’ on a deserted patch of road. If the brakes grind, it usually means that the brake pads or shoes are worn. If the used van skids or swerves, the problem should be investigated. o Engine – Examine the oil and anti-freeze levels to see how well the van has been maintained. Also drive the van when it is cold – this should indicate if there are any problems with the ignition. o Gearbox – Do the gears move smoothly? Release the clutch pedal to see if there are any signs of a worn bearing. o Tyres – Check that they are at legal levels! If you don’t feel confident performing a check on a used van yourself, then why not take someone along who is? If you’re concentrating on driving and getting used to the van, it is a good idea to take along a friend who can listen out for any unusual noises. • Paperwork – Study the used van’s paperwork extensively before completing a purchase and look out for anything that seems unusual or out of place. Does the vehicle identification number (VIN) match between the vehicle itself and the document? The more paperwork you can find on the van, the better. You should also ask to see its MoT certificates and evidence of its service history. Look for the number of previous owners and if you are with a used car dealer, find out when the dealer took delivery of the van. Chances are that if it has been up for sale for a lengthy period of time, the dealer is more likely to be interested in a quick sale and therefore might accept a lower price. Remember that if you are unhappy with anything you see in the paperwork, you can always contact the AA to find out more about a vehicle’s history. • Shop around online – Don’t assume that because you’re buying a used van, you won’t be catered for online. In fact, there are a host of online directories with used vans for sale from both dealers and private owners. Even if you feel uncomfortable about buying a used van online, you should still use web shopping to your advantage to discover fair prices for the van you are interested in. • Think before you sign – Don’t sign for anything until you are 100% happy with the vehicle and you have examined the contract thoroughly. Also bear in mind that signing for a van ‘as is’ means that you will have no legal right to complain if the vehicle does not meet your expectations. Of course, there is an alternative to buying a new or used van outright, with van rental which we shall examine next. VAN RENTAL For many drivers, there will be no need to buy a new or used van outright because your needs for the van will be much different – perhaps you only need a van for a one-way trip, for a period of weeks or months. In that case, you should examine ldv.com van rental – and this next section of this van buying guide will explain how it works. What is van rental and how does it work? Van rental works in a similar manner to car hire in that you get all the benefits of van ownership without making a long term commitment as you would do with van leasing or van contract hire. You simply approach a van rental company, whether it be online or in person, about a vehicle in its range. Then you can establish an agreement to pay a minimal payment to take out the van for a specified period. How long can you take out a van rental for? The length of time that you take out the van rental for is the biggest determining factor in the price you have to pay. There are several types of agreement available: • Van rental by the day – This is a method preferred by people who are moving house, or businesses that have a sudden increase in workload or are waiting on new vehicles to arrive. It is low cost and most van rental companies should supply you with a vehicle within 24hrs of request. • Van rental by the month – This rental option is usually taken by companies who experience an unexpected busy period or perhaps take on temporary staff. There is no long term commitment and most van rental companies should deliver directly to you. • Van rental over a long-term – Depending on the van rental dealer you contact, the longest term you can hire a van for can range from three- to 12months. This often works out as the most economical method of van rental – renting for shorter periods will have comparatively high prices. A long-term van rental is generally employed by businesses looking to address problems in their fleet management. What other options are available? If you’re going to take out a van rental, you should look beyond the cheapest price and consider what additional services the van rental dealer is willing to offer. • Do they deliver – The majority of van rental companies will be willing to deliver and collect the vehicle directly to and from your door. If you find a good deal but your van rental company won’t deliver, then be sure to research its network of rental stations. Many of the major van rental companies have outlets around the country, particularly at prominent public places such as airports. • Availability – Think about how quickly you need the van. Some companies will deliver within 24hrs. • Maintenance – A good van rental agreement should cover any maintenance costs for the hire period. That will not necessarily mean that you can crash the vehicle and get away with it, however! Be sure to examine the policy on repairs and accidents – for example, will they supply you with a free replacement vehicle? • Insurance – Most van rental companies will arrange insurance for you. This can be an expensive add-on, so be sure to ask for a final price after all costs, including insurance, to avoid being stung. • Breakdown cover – Does the van rental company offer 24hr emergency roadside assistance cover as part of the package? • How old are the vehicles – Most van rental vehicles are under 24months old. They should also undergo rigorous checks before you take the van on the road. • Mileage limit – Many van rental companies will impose a mileage limit on the vehicle to ensure it does not undergo excessive wear and tear. If there is a mileage limit in place, make sure you can easily stick to it. • Petrol situation – As with most hire car agreements, you are usually expected to return a van rental with as much petrol in the tank as when you took it out. Each company’s policy on petrol levels will be different, so be sure to check. • Area restrictions – You must ensure you are covered for overseas travel, if you plan to take the van abroad. If you are covered in the EU for example, does your van rental company extend its breakdown recovery service to foreign countries? • Can you extend the agreement – If you are unsure about how long you will need the hire van for, ask the rental company for its terms and prices for lengthier agreements. What do you need for a van rental? In most cases you will need to provide a copy of your driver’s licence and a credit/debit card to secure your rental agreement. Payments are usually made by credit/debit card so that the company is authorised against any potential damage claims. VAN GLOSSARY There are many difficult terms in motoring, and particularly in the van buying process. Dealers may look to capitalise on confusion so it is important to familiarise yourself with the jargon before you buy. The glossary below should put you on the right track. 4x4 Referring to an off-road vehicle that has a similar interior and level of comfort to a car. These are known as sports utility vehicles (SUVs) in America. APR Meaning the ‘annual percentage rate’ – the higher the APR, the more you will have to repay in interest on your new van loan. Cabin The area in which the driver and a passenger are seated within a van. Chassis cab A type of van with a car-like interior and front body and an adaptable frame at the back on which you can build to suit your needs. The Ford Transit Chassis Cab was voted International Van of the Year in 2007. Contract hire An alternative to buying a van outright – contract hire allows you to lease the vehicle over a set period before returning it to the lease company. Conversions Vans can be altered to suit your needs. For example, if you run a business from a van, you may need shelving in the body of the vehicle. There are many linings available for all kinds of needs – from storage vehicles, to ice-cream vans and mobile fish n chip shops. Depreciation How much the van’s value drops over a period of time – if you take out a van leasing agreement, the leasing company will estimate how much the van’s value will depreciate over the leasing term in order to establish your monthly payments. Down-payment In order to reduce your monthly payments, you can pay money upfront when you buy a van – this is called a down-payment. DVLA The Driver and Vehicle Licensing Agency is one of the leading motoring bodies in the UK and all changes in vehicle ownership must be recorded here. Frails These are fitted on the side of vehicles as an additional rack. Hybrids A relatively new technology that combines an electric motor with regular fuel to produce a more economical and environmentally friendly way of driving. Buying a hybrid van will help you save on road tax and congestion charges. Lease A method of financing a van instead of buying it outright. You make monthly payments over a set period. These are calculated by subtracting the depreciation cost (i.e. the cost at the end of the term) from the retail price. At the end of the term you simply return the van to the leasing company, allowing you to secure a new van every few years. Microvan A small van with a box like body, and usually a large board at the back. Seating can vary from two to nine and they are seen as a good alternative for small businesses as they have tax and insurance benefits. Minibus A name give to large passenger vans, often used to transport small groups of people – such as for school day trips. MoT This stands for the Ministry of Transport but is most widely used to refer to the testing method in the UK – each van or car over three years old must pass an annual test to prove it is roadworthy. The price of the MoT varies based on the size of the van. Light vans are in the same category as cars, but minibuses and light good vehicles are charged marginally higher fees. MPG If you are to consider all costs of the van you buy you must closely examine the MPG – miles per gallon. This will indicate how far the van can travel for every gallon of petrol in the tank. Bear in mind that you will never achieve the MPG figures quoted by dealers as tests are carried out in idyllic conditions which are nearly impossible to replicate. However, these will act as a good indication of how economical the van is. MPV Standing for multi-purpose vehicle, this is usually a minivan with room for around six-15 people. Panel van A type of van that is based on the chassis of a family car. These were particularly popular in the 1970s but have drifted out of fashion in more recent times. PCP Referring to personal contract purchase, this is broadly the same as van leasing but you have the option to buy at the end of the term. People carrier A passenger minivan that generally holds from six-15 people. Pickup truck A light commercial vehicle with a separate cabin and rear load area. Ply lining Referring to a van having built-in plywood installations such as shelving. There are many ply lining companies in the UK that also deal with roof racks, conversions and more. Refrigerated van A van that is used to carry cold goods. Residual value The value of a car at the end of a leasing term after depreciation – those with higher residual values are the easiest to sell on. Roof racks Offer additional storage space by effectively adding a shelf to the roof of the vehicle. Tailgate The board at the back of the van – this is an American term. In British English, a tailgate will generally refer to a door on the back of a vehicle. V5 This is the logbook used for all British cars and vans for registration purposes –do not buy a used van that does not carry a logbook as it may be stolen. VIN This is an abbreviation of vehicle identification number – a code used to find information about a vehicle’s history such as when and where it was built. Ensure that the VIN on the van matches the VIN in the logbook before you buy a van. VANS: FAQS ABOUT BUYING A VAN By reading the earlier parts of this van buying guide, we hope you now feel confident to begin your search and preparation to find the right new or used van for you. However, you may have some outstanding questions – so here’s a quick wrap-up. • I don’t know much about vans! Which one should I choose? You need to think about your needs and search the market thoroughly – preferably by using an online website such as What Van? who will provide an excellent resource to start you off in your search. Think about how you plan to use the van. For example, are you looking for a family vehicle? Or are you looking to transport goods for your business? Do you need to buy one van or a fleet of vans? Build a profile of yourself and your needs – and find a van that matches your expectations. • What are the different body types available? There are many different body types available in the UK. These include microvans, which originated in Japan and are comparatively economical and easy to park; while chassis cabs have a cabin and then a large frame on which you can build. Among the other popular models are 4x4s, which are regularly used for family transportation, examples of which include the Renault Espace; a minibus which is used to transport a small group of people; and a panel van, which takes the look of a family car moulded into a van. • Should I buy a van that is fitted out or should I buy ply lining separately? Buying a van that is already fitted with the equipment you need – whether it is ply lining, refrigeration, etc – is usually a cheaper method than buying a van and then kitting it out yourself. However, many ply lining and refrigeration companies will offer good deals and are more likely to produce goods that are tailor-made for your needs. • I only need a van for a short period of time… what should I do? You don’t have to buy a van unless it’s necessary – you can consider a van rental instead. There are a number of van rental companies across the UK that will allow you to hire vehicles for varying periods of time, whether it is for a single trip, a week, or even six months. Van rentals are well-suited to businesses that have temporary members of staff on-board or that have a higher than usual workload. • Is it cheaper to buy or lease a van? That really depends on what your expectations are. Buying a new van has many advantages as you own the car and aren’t restricted by a mileage limit. However, leasing a new van will allow you to change your vehicle every few years – which is often a preferred method for businesses that don’t want to pay out for maintenance costs when vans depreciate. • How can I save money on a new van? Simple! Shop around online ! Buying or leasing new vans is generally much cheaper online than it is if you walk into a dealership. The reason for this is that the van dealer saves on overheads by marketing online – it doesn’t have to pay salesmen for example! • Can I buy a used van online? Yes! There are many online websites to search for used vans , just as there are for new vans. Again, check on What Van? and Parkers to make sure you know the star rating and realistic price. • But is it a good idea to buy a van ‘sight unseen’? Of course it’s always best to take the van for a test drive – so why not see if the online dealership has its own showroom? If you’re buying a new van, then shopping online shouldn’t cause a problem as brand new models should all be more or less the same as long as they have not been driven. If you are still reluctant, then why not use websites to your advantage by taking the prices you quote online into dealerships and asking them to beat that price? • I have impaired credit. How can I get a good deal on a new van? Try and build your credit rating before you buy. This can be done in a number of ways – such as by taking out a credit card that you pay the balance on each month, or simply by paying your bills on time and proving you are reliable. Shop around for loan deals and don’t make applications for rates that you know you simply can’t qualify for – this will only cause further harm to your credit score. If you don’t know what your credit score is, use a credit reference agency such as Experian or Equifax. • Is it a good idea to trade in my current vehicle? It can be – but make sure you get a good price. Just as you research the price of the van you wish to buy, you should see what prices similar models to your current vehicle are fetching online. Then, as long as you are honest about the condition of the vehicle, you should have an idea about a fair price. Selling privately could prove more profitable. • When is the best time of year to buy a van? If you want to secure a cheap deal, shop around during the Christmas period or in the months preceding the introduction of new registrations when dealers may be looking for quick sales to remove excessive stock. Hopefully you now feel confident to begin your search for a van that’s ideal for you or your business. Remember not to compromise on what you want just for a cheap offer – make a thorough search online and you can find the right van at the right price.

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When thinking about buying new vans or used vans there are many considerations to take into account. Use the Internet to get the best deals.