Van Finance

Q: Can I finance a used van?

Yes, used vans can be financed, supported by a deep, liquid used van market that supports strong residual values. Lenders will want to see the van's mileage and remaining warranty, since replacement is generally driven by mileage, warranty expiry and rising maintenance costs rather than age alone. A van bought through an established dealer with service records is generally easier to finance than a private sale with no history.

Q: What deposit do I need for van finance?

Hire purchase typically asks for a deposit of around 10 to 20% of the van's cost, with the balance spread over the agreed term and ownership passing to you at the end. A finance lease or operating lease usually needs no deposit, since the lender's security is the van itself, which suits many businesses since a van depreciates steadily and a lease matched to its working life avoids tying up cash. The deposit level also depends on whether the van is new or used and your business's trading history.

Q: How quickly can I get van finance approved?

Most van finance is approved within 24 to 48 hours once the lender has your application, the vehicle or dealer quote, and basic company details such as recent accounts or bank statements. A used van from an established dealer tends to move fastest through approval, while a bespoke conversion or fleet order can take slightly longer as the lender reviews the full specification. Having your paperwork ready before applying is the main thing that keeps the process quick.

Q: Do I need to have been trading for a minimum period?

Most lenders prefer at least 12 to 24 months of trading history and filed accounts, but sole traders and newer businesses can still get finance, usually with a larger deposit, a personal guarantee, or a shorter term to offset the shorter track record. Lenders will also look at what the van will be used for, since a van needing to be earning from day one supports the case for approval even with a limited trading history.

Q: Is VAT charged on van finance in the same way as buying outright?

If your business is VAT registered, VAT is generally charged in a similar way to an outright purchase, though when it falls due depends on the finance structure. Hire purchase treats the van as a purchase from the outset, so VAT is typically due upfront and usually reclaimable on your next return, while a finance lease charges VAT on each rental payment as it falls due instead. It is worth confirming the exact treatment with your accountant before choosing between the two structures.

Q: What happens if I sell or part-exchange the van before the agreement ends?

The van remains the lender's security until the agreement is settled, so it cannot be sold or part-exchanged without first clearing the outstanding balance, usually done from the sale or part-exchange proceeds. Most lenders will provide a settlement figure on request, and if you are moving to a newer van at renewal, which is common given how steadily vans depreciate, it is standard to roll any shortfall or surplus into the new agreement.

Spread the cost of vans from £15,000 to £80,000+ with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a van?

Yes, 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 £15,000 to £80,000, and most deals are written over 12–60 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

Typical Cost

£15k – £80k

Approval Speed

24–48 hours

Same-day for < £50k

Rates From

4.8% APR

What would a van cost per month?

Van price (ex VAT) £35,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

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

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

Finance options

Hire Purchase (HP)

Rate: From 5.2% APR
Term: 12–60 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Businesses wanting to own the van outright

Finance Lease

Rate: From 4.8% APR
Term: 12–60 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate: From 5.5% APR
Term: 24–48 months
Deposit: None required
Ownership: Return at end
Best for: Always drive the latest model. Off balance sheet.

Representative example

On a purchase price of £35,000: a 10% deposit of £3,500, then 48 monthly payments of £738 at 5.9% APR representative (fixed). Total amount payable £38,924, including the deposit. The rate you are offered depends on your business and the asset.

Machine or specification	Guide price	Type
Ford Transit Custom	£28,000 – £42,000	Medium Panel Van
Mercedes Sprinter	£35,000 – £55,000	Large Panel Van
Volkswagen Transporter T6.1	£30,000 – £45,000	Medium Panel Van
Vauxhall Vivaro	£25,000 – £38,000	Medium Panel Van

Tax benefits

Vans qualify for Annual Investment Allowance (AIA), letting you deduct the full purchase cost from taxable profits in year one, up to £1,000,000. HP agreements allow you to claim capital allowances on the asset. Lease payments are typically fully deductible from profits as a business expense.

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.

Frequently asked questions

Can I finance a used van?

Yes, used vans can be financed, supported by a deep, liquid used van market that supports strong residual values. Lenders will want to see the van's mileage and remaining warranty, since replacement is generally driven by mileage, warranty expiry and rising maintenance costs rather than age alone. A van bought through an established dealer with service records is generally easier to finance than a private sale with no history.

What deposit do I need for van finance?

Hire purchase typically asks for a deposit of around 10 to 20% of the van's cost, with the balance spread over the agreed term and ownership passing to you at the end. A finance lease or operating lease usually needs no deposit, since the lender's security is the van itself, which suits many businesses since a van depreciates steadily and a lease matched to its working life avoids tying up cash. The deposit level also depends on whether the van is new or used and your business's trading history.

How quickly can I get van finance approved?

Most van finance is approved within 24 to 48 hours once the lender has your application, the vehicle or dealer quote, and basic company details such as recent accounts or bank statements. A used van from an established dealer tends to move fastest through approval, while a bespoke conversion or fleet order can take slightly longer as the lender reviews the full specification. Having your paperwork ready before applying is the main thing that keeps the process quick.

Do I need to have been trading for a minimum period?

Most lenders prefer at least 12 to 24 months of trading history and filed accounts, but sole traders and newer businesses can still get finance, usually with a larger deposit, a personal guarantee, or a shorter term to offset the shorter track record. Lenders will also look at what the van will be used for, since a van needing to be earning from day one supports the case for approval even with a limited trading history.

Is VAT charged on van finance in the same way as buying outright?

If your business is VAT registered, VAT is generally charged in a similar way to an outright purchase, though when it falls due depends on the finance structure. Hire purchase treats the van as a purchase from the outset, so VAT is typically due upfront and usually reclaimable on your next return, while a finance lease charges VAT on each rental payment as it falls due instead. It is worth confirming the exact treatment with your accountant before choosing between the two structures.

What happens if I sell or part-exchange the van before the agreement ends?

The van remains the lender's security until the agreement is settled, so it cannot be sold or part-exchanged without first clearing the outstanding balance, usually done from the sale or part-exchange proceeds. Most lenders will provide a settlement figure on request, and if you are moving to a newer van at renewal, which is common given how steadily vans depreciate, it is standard to roll any shortfall or surplus into the new agreement.

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Guides and resources

What Is Asset Finance? HP vs Leasing Operating vs Finance Lease Best Asset Finance Companies Close Brothers Review Lombard Review

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