Vans, trucks and fleets
Commercial Vehicle Finance
Commercial vehicle finance lets your business spread the cost of vans, trucks, HGVs, trailers and company cars over monthly payments. The vehicle secures the finance, and you can choose to own it at the end or hand it back.
Funding Plus compares hire purchase, contract hire and lease purchase deals for single vehicles and whole fleets, new or used.
- New and used vehicles
- Single vans to whole fleets
- Own it or hand it back
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Vehicle Finance
How much do you need?
Takes about a minute. No impact on your credit score.
Vehicle Finance at a Glance
- Amounts
- £5k – £2m+
- Terms
- 2 – 5 years
- Deposit
- 0% – 20%
- Security
- The vehicle
- Best for
- Vans, HGVs, fleets
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Vehicle Finance Works
- 1Find your vehicleFrom a dealer, auction or private seller. Get the details and price.
- 2Choose how to payOwn it with hire purchase, or rent it with contract hire.
- 3Compare offersWe show monthly costs, deposit and any balloon payment side by side.
- 4Drive awayThe lender pays the seller and you collect the vehicle.
How Much Does Vehicle Finance Cost?
Your monthly cost depends on the vehicle's price, deposit, term, any balloon payment and its expected value at the end. Contract hire often includes maintenance, which changes the comparison.
- Fixed monthly payments
- Deposit, or VAT upfront on hire purchase
- Optional balloon payment to lower monthly costs
- Excess mileage and damage charges on contract hire
Worked example
A £35,000 van on hire purchase
- Vehicle price
- £35,000
- Deposit
- £3,500
- Amount financed
- £31,500
- Rate and term
- 9% a year, 4 years
- Monthly payment
- £783.88
- Total cost of finance
- £6,126
Illustrative only, not a quote. Excludes VAT and fees.
Who Can Get Vehicle Finance?
- A UK business, including sole traders
- A suitable driving licence for the vehicle class
- An O-licence for HGV operators where required
- Affordability for the monthly payments
- Credit history the lender can accept
What You'll Need to Apply
- Vehicle details and price
- Recent business bank statements
- Driving licence details
- Accounts for fleet deals
Pros and Cons of Vehicle Finance
Advantages
- Keeps cash free for running the business
- Fixed payments
- Contract hire can include servicing
- Easier to arrange than a loan
Things to watch
- The vehicle can be repossessed if you fall behind
- Mileage limits and return conditions on contract hire
- Total cost higher than buying outright
- Balloon payments need planning
Ways to Finance a Vehicle
Hire purchase
Pay in instalments and own the vehicle at the end.
Contract hire
Fixed monthly rental, often with maintenance. Hand it back at the end.
Lease purchase
Lower monthly payments with a balloon payment to own it at the end.
Fleet finance
Finance several vehicles under one agreement and manage them together.
Vehicle Finance vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Vehicle finance | Vans, trucks and fleets | 2 – 10 days | The vehicle |
| Asset finance | Other equipment | 2 – 10 days | The asset |
| Business loan | Buying outright | Days to weeks | Optional |
| Business line of credit | Running costs like fuel | Days | Usually none |
Who Uses Vehicle Finance?
Vehicle finance is used by any business that runs vans, trucks or company cars.
Customer story
“[Real customer story for Vehicle Finance: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] vehicle finance
Vehicle Finance FAQs
Can I finance a used van?
Yes. Most lenders finance used vehicles, often up to a set age at the end of the term.
Hire purchase or contract hire?
Hire purchase suits vehicles you'll keep for years. Contract hire suits fleets you replace regularly and want fixed running costs for.
Can a new business get vehicle finance?
Often yes, as the vehicle secures the deal. A deposit or director's guarantee may be needed.
What is a balloon payment?
A larger final payment that lowers your monthly payments. You can pay it, refinance it or sell the vehicle to cover it.
Can I finance an HGV?
Yes. HGV and trailer finance is common. Lenders may ask about your O-licence and contracts.
Related Guides
Compare vehicle finance quotes today
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