Van loans are available from a variety of different lenders. Most dealerships offer financing for the buyer at the time of the van purchase, but the buyer should check with other loan sources to try and find the lowest available interest rate. If the buyer is purchasing a van from a private seller, a local bank or credit union is usually the best source to check with for financing.
Dealer Financing
Once you finalize the purchase, apply for a loan with the dealer's financing source. The salesperson will take you to the finance manager's office to complete a loan application. The finance manager will send your application to all of the lenders that the dealership uses for vehicle financing. If you receive multiple approvals on the application, the finance manager will let you know what interest rate and loan term each lender offers. Choose the lender with the lowest interest rate or the longest loan term if you want a lower monthly payment.
Bank Loan
Contact your bank and ask to speak with a consumer loan officer. Find out what the interest rate is for the type of van you are buying. Ask the loan officer if you can get a discount on the rate by having the monthly van payment taken directly out of your checking account. Apply for the loan if you are buying the van from a private seller, or if the interest rate is lower than what the finance manager offers you at the dealership. When you receive an approval, arrange a time to close on the loan. Make a note to subtract the payment from your checking account each month, if you are using the automatic deduction option.
Credit Union Loan
If you are a member of a local credit union, check with a loan officer to find out the interest rate for your van. If you are not a member of a credit union, you can still research the interest rate and then join the credit union if you want to apply for a van loan. If the credit union has a better financing package than your bank, contact your bank loan officer and cancel your application. Arrange a time to take delivery of the van once you close on the credit union loan.
Home Equity Loan
Apply for a home equity loan with your bank or credit union if you do not want to use traditional auto financing. Depending on the interest rate environment at the time you buy the van, home equity rates may be lower than auto rates. There may also be tax advantages to using a home equity loan, which can save on your total van purchase cost. Check with an accountant for advice before you decide to use a home equity loan to finance the van. Once you close on the home equity loan, contact the seller to take delivery of the van.
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