How van finance is repaid
With a loan or hire purchase, you borrow the van's price minus your deposit and repay it in equal monthly payments that include interest. With HP, you own the van once you've made the final payment.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Worked example
A £25,000 van with a £2,500 deposit means financing £22,500. At 9% over 48 months, the monthly payment is £559.91, £26,875.85 in total.
Other options and VAT
Businesses also use lease and contract hire for vans, where you pay to use the van and hand it back at the end. Those aren't covered by this calculator.
VAT-registered businesses can usually reclaim the VAT on a van bought for business use. Check how VAT is treated in your finance agreement with your accountant.
Inputs for the van finance calculator
Van price
The price of the van, including any extras you're financing.
Deposit
What you're paying upfront, including any part-exchange value.
Interest rate (per year)
The annual interest rate on your finance. The rate shown is only an example, so enter the rate from your quote. Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Term
The length of the agreement in months.
CALCULATOR QUESTIONS
Van finance calculator questions
How much will van finance cost per month?
Enter the price, deposit, rate and term above. For example, financing £22,500 at 9% over 48 months costs £559.91 a month.
Can I reclaim VAT on a van?
VAT-registered businesses can usually reclaim VAT on a van used for business. Check the details with your accountant.
Is hire purchase or leasing better for a van?
HP means you own the van at the end. Leasing usually has lower payments, but you hand the van back. This calculator covers loans and HP.
Does a bigger deposit lower my payments?
Yes. Financing less reduces both the monthly payment and the total interest.