The Future of Van Financing: Trends and Innovations to Watch Out For
As the automotive finance market continues to remain volatile, we take a look at the key trends and changes to watch out for moving forwards.
- Among the biggest changes will be in the relationship between customers and motor finance providers.
- As self-driving vehicles become a reality, consumer demands will change, and finance providers will need to adapt.
- Key changes include AI-conducted credit checks, blockchain technology, and subscription-based finance products.
Automotive finance, including van finance, has long been a god-send in the industry. With various finance packages like Contract Hire, Hire Purchase, and so on, customers can access newer vehicles at a lower price.
Though with changing times and shifting demands, we can expect to see a few key changes to van financing over the coming years.
Read on for a glimpse into the future of van financing.
Credit checks conducted using AI
As Artificial Intelligence (AI) continues to develop, so does its future application to the finance industry.
While the production of autonomous vehicles or self-driving cars is in motion, AI could also lend a hand in the finance sector too.
With AI credit assessments, algorithms could be used to analyse large volumes of data and help build consumer profiles. These could include everything from income and credit score history to employment stability and more.
Given the speed at which AI can organise data, checks could be completed instantly, speeding up the application process.
Plus, it could also be used to suggest customised finance agreements based on a customer’s individual circumstances.
Use of blockchain technology
If you’re into crypto, you may have come across blockchain technology. Though it’s mainly used in the world of digital currency, it could also be introduced to the real world of automotive finance.
The real benefit of blockchains lies in their ability to store immutable data which cannot be altered. After being entered into the system, the data becomes fixed and tamper-proof. This will enable greater security when it comes to finance records and reduce the risk of fraud or issues of dispute.
Another use of blockchains is storing vehicle history, including maintenance and ownership changes. This will be more helpful for both consumers and borrowers in judging a car or van’s condition and status. It could also help protect them from receiving a damaged or stolen car or van without their knowledge.
Subscription-based financing
When it comes to the automotive industry in general, there is now a wealth of options when it comes to new vans, cars, and other vehicles. A pace of change that’s only set to quicken further with the rise of electric vans and other EVs.
With so much choice, motorists will be looking for more flexible finance offers allowing them to try different vehicles. Meaning the days when drivers would buy a new van and keep it for ten years could be long gone.
Once self-driving vehicles arrive, motorists are expected to move away from ownership-based finance. Replaced by pay-as-you-drive (PAYD) financing.
This will allow motorists to pay for the use of a vehicle based on the number of miles travelled in a given period or the number of hours it has been used for.
Subscription-based financing allows customers more flexibility when it comes to changing vehicles.
In a world where motorists are looking for financing solutions on a shorter-term basis, a subscription model could be the key.
Keeping you updated at Vansdirect
At Vansdirect, we like to keep you updated on the latest happenings in the industry. Whether it’s keeping you up to speed on the latest Clean Air Zones (CAZs), or all you need to know about wear and tear during your lease.
With our range of flexible van finance options like Hire Purchase, Contract Hire, and Van Leasing, you can get the perfect new van in a way that suits you. Choose your agreement and terms, then simply split the cost into manageable monthly instalments!
Get in touch with our expert sales team today to see how we can help.