Lendus.

HGV Finance

Spread the cost of HGVs from £60,000 to £160,000+ with flexible finance options. HP, lease, or refinance – compare rates from 40+ lenders.

Can you finance a hgv?

Yes, hgvs 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 £60,000 to £160,000, and most deals are written over 24–72 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

£60k – £160k

Approval Speed

24–48 hours

Same-day for < £75k

Rates From

4.5% APR

What would a hgv cost per month?

£100,000
10%
60 months
9%
£0

Your estimate

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

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

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Finance options

Hire Purchase (HP)

Rate
From 4.9% APR
Term
24–72 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Operators wanting to own the tractor unit outright at the end

Finance Lease

Rate
From 4.5% APR
Term
24–72 months
Deposit
None required
Ownership
Return, refinance the balloon, or buy at the end
Best for
Tax-efficient: rentals are deductible against profit, and a balloon keeps monthly payments down

Contract Hire

Rate
From 5.2% APR
Term
24–60 months
Deposit
None required
Ownership
Return at the end
Best for
Renewing the fleet regularly to meet emissions standards and keep maintenance predictable, off balance sheet

Representative example

On a purchase price of £100,000: a 10% deposit of £10,000, then 48 monthly payments of £2,110 at 5.9% APR representative (fixed). Total amount payable £111,280, 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
DAF XF 480 £75,000 – £95,000 6x2 Tractor Unit
Scania R450 £85,000 – £110,000 Artic Tractor Unit
Volvo FH 460 £85,000 – £115,000 Artic Tractor Unit
Mercedes-Benz Actros £85,000 – £130,000 Artic Tractor Unit

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Tax benefits

HGVs bought outright or on hire purchase normally qualify as plant and machinery, so the Annual Investment Allowance lets you deduct the full cost against taxable profits in the year you start using the vehicle, up to the current £1,000,000 AIA limit. VAT on the purchase price is generally payable upfront on HP, then reclaimed if you're VAT-registered. On finance lease or contract hire there's no big VAT bill at the start: VAT is charged on the rentals and recovered within them as you pay, and the rentals themselves are usually deductible as a business expense.

Market context

HGVs are bought almost exclusively by businesses: hauliers, own-account fleets running vehicles alongside another trade, and owner-drivers working for a haulage company or agency. Most operators finance rather than buy outright because a tractor unit is one of the largest single purchases a small haulage business makes, and spreading the cost protects working capital for fuel, tyres, and driver wages. Fleets are commonly renewed on a cycle timed around warranty cover, residual values, and Euro emission standards, with many operators mixing new units under warranty alongside used ones bought more cheaply once the steepest depreciation has passed.

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 hgv?
Yes. Most lenders will finance a used hgv up to around 10 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. An independent inspection or valuation is common for older or higher-value vehicles before the lender confirms terms.
What deposit do I need for hgv 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 hgv 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 hgv finance approved?
Straightforward applications for a hgv under £75k 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 hgv 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.
Do I need an Operator's Licence before I can finance an HGV?
You don't need an Operator's Licence (O-licence) in place before applying for finance, but most lenders will ask whether you hold one, or have one applied for, before releasing funds, since it's a legal requirement to run goods vehicles over 3.5 tonnes for hire or reward or in connection with a trade. If your O-licence application is still with the Traffic Commissioner, tell the lender early; some will proceed on a conditional basis while others prefer to wait until it's granted.

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