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Can I Scrap a Van on Finance?

Posted November 1, 2021
by Anjana

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Not everyone can afford to buy a vehicle outright. This is where financing, which is a very popular choice that leaves you with a lot more flexibility when it comes to owning a vehicle.

The main issue with this concept is what would happen if your financed vehicle becomes damaged and needs to be scrapped while you still have an outstanding balance that you need to pay.  We have written this article to point out to you the options that you have available if you end up in this situation and how we at Scrap Van Central can help you scrap your financed vehicle.

Can I Sell My Van with a Finance?

Regardless of whether you want to sell or scrap a vehicle, you must definitely pay any outstanding finance fee before going through with it. At any given time selling a van with finance is a complicated endeavor because you do not fully own the vehicle. This can lead to many issues. This is why we at Scrap van Central are here, to help you circumvent this complicated situation and open up options for you. If you select us, we can arrange for you certain specialist buyers who would be willing to pay off any outstanding finance fee to the finance holder and pay you the difference (The value of the vehicle after paying the fee) to you. This would be a win-win situation for all parties involved. If your van is past its shelf life and needs to be scrapped but it still has outstanding finance, we would suggest that you talk with your finance company and ask their opinion as well about it.

How does Van Finance Work?

Getting finance on a vehicle means that instead of you paying the full van’s worth upfront, you can pay for the vehicle bit by bit over time, but you can start using the vehicle straight away. Financing will enable you to pay off the value of your van in manageable installments which gives you the option of either fully owning the vehicle, or giving the vehicle back, or even exchanging the vehicle when your agreement ends. All the while you can enjoy the benefits, financial or otherwise, that your vehicle brings you. You can find several different finance options out there such as Leasing, hire purchase, or personal contract purchase.

Personal Contract Purchase

A Personal Contract Purchase (PCP), means that you will pay a deposit upfront for a portion of the vehicle’s cost, and then pay the rest in monthly or yearly installments. During this contracted period, the finance company will own the vehicle and when the agreement ends you can either pay the remaining balance and get ownership of the vehicle, or exchange the van for a newer vehicle, or return it back to the supplier completely. The amount your deposit and monthly installments will be will depend on the value of the vehicle you’re financing. If you are planning to keep the van after the contracted period ends, you might need to pay a larger “balloon” payment.

Hire Purchase

Hire Purchase (HP) is very similar to PCP. You will as usual pay a deposit upfront, and pay the rest of the balance in installments. During the entire contracted finance period, the finance company will own the vehicle. You will gain full ownership of the vehicle once the agreed term is up. The main difference between PCP and HP is with PCP you have various options where at the end of the term to either keep or swap or give back your vehicle. But with HP you will have to pay off the vehicle fully and own it.


A lease of a vehicle is where you are basically hiring it for an agreed period of time. When you are leasing you’ll never own the vehicle, and the payments made for the vehicle act as a renting fee. The Finance company will own the vehicle during and after the contract period.

Get a Quote for Your Financed Vehicle

You can still get your van scrapped or salvaged without settling your finance payments but we would strongly advise you to contact your finance company and explain your situation to them before taking any action. You can talk to our experts at Scrap Van Central any time to get further information on how to go about this process.