Lendus.

Electric Van Finance

Spread the cost of electric vans from £38,000 to £65,000+ with flexible finance options. HP, lease, or refinance – compare rates from 40+ lenders.

Can you finance a electric van?

Yes, electric vans are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £38,000 to £65,000, and most deals are written over 24–60 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£38k – £65k

Approval Speed

24–48 hours

Same-day for < £50k

Rates From

5.0% APR

What would a electric van cost per month?

£46,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical electric van price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.4% APR
Term
24–60 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the van outright once battery warranty and residual value are considered

Finance Lease

Rate
From 5.0% APR
Term
24–60 months
Deposit
None required
Ownership
Return, refinance the balloon, or buy at the end
Best for
Tax-efficient, with a balloon that reflects battery-adjusted residual value

Contract Hire

Rate
From 5.7% APR
Term
24–48 months
Deposit
None required
Ownership
Return at the end
Best for
Fleets that want the risk of battery degradation and resale value taken on by the lender

Representative example

On a purchase price of £46,000: a 10% deposit of £4,600, then 48 monthly payments of £970 at 5.9% APR representative (fixed). Total amount payable £51,160, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Ford E-Transit £42,000 – £58,000 Large Electric Panel Van
Mercedes-Benz eSprinter £48,000 – £65,000 Large Electric Panel Van
Vauxhall Vivaro Electric £38,000 – £52,000 Medium Electric Panel Van
Renault Master E-Tech £40,000 – £55,000 Large Electric Panel Van

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Tax benefits

Electric vans are treated the same as diesel or petrol vans for capital allowances purposes, since they qualify as plant and machinery rather than as cars: the Annual Investment Allowance covers the full cost in year one, up to £1,000,000, regardless of powertrain. Enhanced first-year reliefs have applied specifically to electric cars in past Budgets, but the rates and qualifying dates are set and reviewed at each fiscal event, so check current HMRC guidance rather than assuming a particular relief applies before you buy. VAT treatment follows the same pattern as any other van: due upfront on hire purchase, spread across the rentals on finance lease or contract hire. Grant schemes for electric vans have existed previously; check current government guidance, as availability and eligibility change.

Market context

Electric vans are bought by businesses running fixed, predictable routes, such as parcel and last-mile delivery, facilities and grounds maintenance, and trades operating mainly within a city or town, where daily mileage sits comfortably within the van's range and overnight depot charging is available. Buyers weighing an electric van against a diesel equivalent typically look at total running cost (fuel versus electricity, servicing) alongside the higher purchase price, and access to low or zero emission zones is a growing factor in city-based fleets. Battery health and warranty terms are a bigger part of a used electric van's valuation than mileage alone.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a used electric van?
Yes. Most lenders will finance a used electric van up to around 6 years old at the start of the agreement, and some will go older case by case. Rates on used equipment typically run 0.5–1% higher than new because residual values are less certain. Battery state of health and remaining warranty are checked alongside mileage on any used electric van. An independent inspection or valuation is common for older or higher-value vehicles before the lender confirms terms.
What deposit do I need for electric van finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance lease and contract hire agreements often need no deposit at all, since the lender keeps an interest in the electric van throughout the term. Putting down a larger deposit reduces your monthly payments and can unlock a better rate, but it isn't compulsory on most deals; it's a trade-off between cash flow today and the total cost of the agreement.
How quickly can I get electric van finance approved?
Straightforward applications for a electric van under £50k are commonly approved within 24–48 hours, and same-day decisions are possible once paperwork (bank statements, accounts, proof of ID) is in. Larger or more complex deals, multiple units, or first-time applicants without a strong trading history usually take longer, sometimes 5–7 working days, while the lender reviews the business case and, for higher-value assets, arranges an inspection.
Do I need to have been trading for a minimum period?
Most mainstream lenders look for 2+ years of trading history before offering standard rates and terms on electric van finance. Newer businesses aren't automatically excluded, but they may be asked for a personal guarantee from a director, additional security, a higher deposit, or a shorter term to offset the extra risk. Start-ups sometimes do better going through a broker who can match them to a lender that specialises in newer businesses.
Does an electric van cost more to finance than a diesel one?
The APR itself is broadly similar across electric and diesel vans, since the rate mainly reflects your business's credit profile rather than the powertrain. What differs is the amount financed: electric vans generally have a higher purchase price than a directly equivalent diesel model, so monthly payments are usually higher in cash terms even at a similar rate, before accounting for any savings on fuel and servicing over the term.

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