Your choices for obtaining van finance may to some extent depend on your credit file. If you have a poor credit rating then the chances of obtaining great interest rates on a loan are slim, even if you are able to get credit at all. If you have an excellent score then you are often free to choose from some of the best deals out there. So what choices do you have for finance for a new or used car purchase? Here are three popular choices for credit.

· HP otherwise known as hire purchase which is often offered by car dealerships

· A personal loan searched for online by a motoring website that specialises in finding the best deals

· Credit card if you are buying a relatively cheap used vehicle and then switch to a 0% balance transfer card

The credit card option - The credit card option is really only suitable if you are buying a cheap second hand vehicle. If you borrow the money on your credit card and then transfer your balance to a card that offers a 0% deal for a period and you then pay off the balance within that time, of course you do not have to pay any interest.

The hire purchase option - This option is usually offered if you are buying a brand new vehicle or a quality used one from a dealership or showroom. The salesperson may try telling you that you cannot get a better deal than the one they offer and it may be tempting to take the deal, as of course is saves you from having to find van finance yourself. However, as even just the smallest percentage change in interest rates may add a great deal of money onto the loan you may want to take the time to look around for a deal yourself. The downside to taking HP is that the vehicle is not yours until the very last installment has been paid.

The personal loan - Many individuals are put off from looking for van finance themselves, as they do not understand percentage rates and finding the best deals. However, there are specialist motoring websites that offer to search on your behalf and grab the best deal for you to compare. You may even be able to search for a vehicle in your area on the same website and even get access to insurance deals this way. When taking a loan and buying your vehicle this way finance is often paid straight to the dealer and you then simply pick up the van. If you were to decide to sell the van, you are free to do so as long as you pay the loan up or keep up the repayments. Of course, if you have already found the ideal vehicle then you are still able to choose this option and just look for the loan to provide you with cash to walk into a dealership.

Louis Rix is a Director of NetCars, one of the UK’s leading motoring websites. First established in January 2000, its mission is to become the number one site for used car searches. NetCars provide Van Finance.