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Skip Lorry Finance

Spread the cost of skip lorries from £62,000 to £120,000+ with flexible finance options. HP, lease, or refinance – compare rates from 40+ lenders.

Can you finance a skip lorry?

Yes, skip lorrys 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 £62,000 to £120,000, 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

£62k – £120k

Approval Speed

24–48 hours

Same-day for < £75k

Rates From

4.7% APR

What would a skip lorry cost per month?

£78,000
10%
60 months
9%
£0

Your estimate

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

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

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Finance options

Hire Purchase (HP)

Rate
From 5.1% APR
Term
24–72 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Waste and skip hire businesses wanting to own the vehicle outright

Finance Lease

Rate
From 4.7% APR
Term
24–72 months
Deposit
None required
Ownership
Return, refinance the balloon, or buy at the end
Best for
Tax-efficient way to grow a skip fleet without a large deposit on each vehicle

Contract Hire

Rate
From 5.4% APR
Term
24–60 months
Deposit
None required
Ownership
Return at the end
Best for
Operators wanting the loading gear and chassis replaced together on a fixed cycle

Representative example

On a purchase price of £78,000: a 10% deposit of £7,800, then 48 monthly payments of £1,645 at 5.9% APR representative (fixed). Total amount payable £86,760, 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
Iveco Eurocargo Skip Loader £62,000 – £82,000 Medium Skip Loader
DAF LF Skip Loader £65,000 – £85,000 18t Skip Loader
Volvo FL Skip Loader £70,000 – £95,000 Skip Loader
Mercedes-Benz Econic Skip Loader £85,000 – £120,000 Low-Entry Skip Loader

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Tax benefits

Skip lorries, including the hydraulic loading gear, qualify as plant and machinery for the Annual Investment Allowance, so the full invoice cost is normally deductible from taxable profits in year one, up to £1,000,000. VAT on hire purchase is generally due upfront; on finance lease or contract hire it's charged on the rentals and recovered as you pay, which helps when adding several vehicles to a growing skip hire fleet at once.

Market context

Skip lorries are bought by skip hire and waste management companies, and by builders' merchants and demolition firms running their own waste collection. Operators typically run a fleet rather than a single vehicle, since skip hire depends on having enough trucks to service a delivery and collection round, and finance lets a growing business add capacity without funding each new lorry from cash. A waste carrier's licence is required to operate commercially, and replacement decisions are usually driven by the condition of the hydraulic loading gear as much as the chassis, since it sees continuous heavy use loading and tipping skips.

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 skip lorry?
Yes. Most lenders will finance a used skip lorry 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 skip lorry 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 skip lorry 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 skip lorry finance approved?
Straightforward applications for a skip lorry 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 skip lorry 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 a waste carrier's licence before financing a skip lorry?
You don't need it in place before applying for finance, but you will need an appropriate waste carrier's licence from the environment agency for your region before you can legally collect and transport waste commercially, and most lenders will ask about your regulatory position as part of assessing the application. If your licence application is in progress, mention it upfront; it's a normal part of setting up a skip hire business and doesn't usually hold up a finance decision on its own.

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