Commercial vehicle finance
Compare Van, HGV
& Fleet Finance
What we do
Compare Advantage is a free comparison service for businesses that run vehicles. Tell us what you need, from one van to a fleet of tractor units, and our partner, FCA-authorised broker Halo Corporate Finance, checks your enquiry against the 130+ lenders on its panel. You see what fits before you commit, and can hold it up against the dealer’s finance.
- Vans, pick-ups, tippers, HGVs and trailers
- One vehicle or a whole fleet, new or used
- Hire purchase, contract hire or refinance
Prefer to talk? Call 0330 057 7175
- 130+ lendersOn our partner’s panel
- £5k to £1mLoans and asset finance
- One enquiryInstead of one per lender
- FCA-authorised partnerHalo Corporate Finance
- Free to enquireNo obligation to apply
Compare before you apply
The cheapest monthly is not always the cheapest vehicle
Vehicle finance is sold on the monthly payment. A lower monthly can come from a bigger balloon, a longer term or a tighter mileage limit, and each of those moves cost to the end of the agreement rather than taking it away. Comparing properly means holding the vehicle, deposit and term the same and seeing what each lender charges, then deciding whether you want to own the vehicle or hand it back.
- 1
Tell us once
Two minutes on the form: how much, what it is for and a few details about the business.
- 2
The panel is checked
Halo Corporate Finance matches your enquiry against the 130+ lenders on its panel.
- 3
You choose
Halo talks you through the options that fit. You decide whether to apply. There is no obligation.
What to compare
- The dealer’s finance against the panel, for the same vehicle, deposit, term and any balloon, so you are comparing lenders and not structures.
- Hire purchase against contract hire. Owning suits vehicles you run into the ground. Contract hire suits a fleet you replace every few years, especially with maintenance included.
- Mileage limits and return conditions on contract hire. Excess mileage and damage charges at the end can wipe out a lower monthly rental.
- The total cost, not only the monthly, including documentation fees, the option-to-purchase fee and any balloon at the end.
- Electric against diesel over the whole term, once the plug-in van grant, fuel, Clean Air Zone charges and tax relief are counted, not just the price on the windscreen.
What you can finance
From a single van to a haulage fleet
New from a main dealer, nearly new from a leasing return, or used from an auction or another operator. Bodywork, racking, tail lifts and conversions can usually go on the same agreement as the chassis.
Vans
Small, medium and large panel vans, Lutons, dropsides, tippers and refrigerated vans, with racking and conversions on the same agreement.
HGVs and tractor units
Rigids from 7.5 tonnes up, and tractor units for articulated haulage. New, nearly new or used from dealers and auctions.
Trailers and bodies
Curtainsiders, box and fridge trailers, flatbeds, tippers and specialist bodywork, financed with the chassis or separately.
Minibuses and people carriers
For schools, care providers, tour operators and community transport, where the vehicle earns its keep in trips, not miles.
VAT and tax
Van, car or pick-up: why the tax line matters
The same monthly payment can cost a business very different amounts after VAT and tax, depending on whether HMRC treats the vehicle as a van or a car.
| Item | Van | Car | Double cab pick-up |
|---|---|---|---|
| VAT on the purchase | Reclaimable by a VAT-registered business using it for business | Usually blocked, unless the car is used only for business and not available for private use | Treated as cars since April 2025, so the car rules apply |
| VAT on lease rentals | Reclaimable on business use | Usually 50% blocked where there is any private use | As for cars |
| Capital allowances | Plant and machinery: Annual Investment Allowance, and full expensing for companies on new vans | No Annual Investment Allowance. Writing-down allowances by CO2: 0g/km new cars can get a 100% first-year allowance | As for cars. The transitional relief for older purchases has now closed |
A general guide to HMRC’s rules as of November 2026. Your accountant can confirm the treatment for your business and vehicle.
Running a fleet
Own some, rent some, replace on a cycle
Most fleets are not financed one way. Vehicles that work hard for many years, such as tippers and specialist bodies, are often bought on hire purchase and kept. Vans that do high mileage and need replacing every three or four years often suit contract hire, where the rental can include servicing and the vehicle goes back at the end.
A replacement cycle also helps cash flow. If agreements end in a steady rhythm, the business is never hit by replacing half the fleet at once, and older vehicles leave before the repair bills climb.
If the fleet is already paid for, asset refinance can release cash against it. That cash can pay the deposits on the next round of vehicles.
Going electric
Financing an electric van
Under the zero emission vehicle mandate, van makers must sell a rising share of zero-emission vans, and the 2026 target is 24%. That means more electric vans on forecourts, and more lenders who understand them.
The plug-in van grant takes up to £2,500 off an eligible small van and up to £5,000 off an eligible large van. The dealer applies it at the point of sale, so you finance the lower price.
Compare the whole cost over the term, not the list price: charging against diesel, any Clean Air Zone charges you avoid, and the tax relief. Some lenders will also fund a charger at the depot alongside the van.
Clean Air Zones that charge vans
These English zones charge vans that do not meet their emission standards:
- Bath
- Birmingham
- Bradford
- Bristol
- Sheffield
- Tyneside (Newcastle and Gateshead)
Portsmouth’s zone charges HGVs but not vans. London has its own Ultra Low Emission Zone and Low Emission Zone, run by Transport for London. If your work takes you into any of them, check a used vehicle before you finance it.
HGVs
Three things to settle before you finance a lorry
A lender looks at the vehicle and the business. These are the parts of the business side that are particular to heavy vehicles.
HGV Road User Levy
Most HGVs of 12 tonnes or more pay the levy. From April 2026 the annual rates run from £161 to £804, depending on weight, axles and the vehicle’s band. Build it into the running costs before choosing a vehicle.
Driving licence categories
C1 covers vehicles from 3,500kg to 7,500kg, C covers rigids over 3,500kg, and C1E and CE add a trailer. Match the vehicle to the licences your drivers actually hold.
Operator’s licence
Running goods vehicles over 3.5 tonnes for business usually needs an operator’s licence, and the traffic commissioner will want to see the business has enough money to maintain its vehicles. A lender may ask for it too.
Vehicle finance in figures
A quieter 2025, a stronger 2026
Commercial vehicles are one of the biggest parts of UK business asset finance. Lending dipped in 2025 and has picked up through 2026.
£10.8bn
of commercial vehicle finance written for UK businesses in 2025, 3% less than in 2024
+10%
growth in commercial vehicle finance in August 2026 against a year earlier
24%
is the 2026 zero-emission target for new van sales under the government’s mandate
Sources: Finance & Leasing Association, new business figures for 2025 and August 2026; Vehicle Emissions Trading Schemes Order 2023, as updated.
Buying used
Used vans and trucks: what lenders check
Age and mileage at the end
Lenders work out how old the vehicle will be, and roughly how many miles it will have done, when the last payment is due. High-mileage vehicles usually get shorter terms.
History and condition
Service records, MOT or annual test history and any write-off markers. A vehicle with gaps in its history can still be funded, but by fewer lenders.
The seller
Dealer, auction or private. For auctions, get approved before the sale. For private sales, expect checks that the seller owns the vehicle outright.
If you are buying a tipper or grab lorry for construction work, our plant and machinery finance page covers the machines that usually go with it.
Questions
Vehicle finance questions
Need cash rather than a vehicle? See all business finance.
Compare vehicle financeWhat is commercial vehicle finance?
It is asset finance for vans, pick-ups, lorries, trailers and minibuses. A lender buys the vehicle, or lends against it, and you pay monthly. The vehicle secures the agreement, which makes it one of the most widely available kinds of business finance.
Can I get van finance as a sole trader?
Yes. Many lenders on the panel fund sole traders and partnerships. Agreements of £25,000 or less with a sole trader, or a partnership of two or three partners, are usually regulated under consumer credit rules, which gives you extra protections.
Can I reclaim the VAT on a van?
If your business is VAT registered and the van is used for the business, you can normally reclaim the VAT on the purchase, or on each rental if it is leased. Cars are different: VAT on a car is usually blocked unless it is used only for business.
Is a double cab pick-up a van or a car for tax?
Since April 2025, most double cab pick-ups are treated as cars for capital allowances, so they no longer qualify for the Annual Investment Allowance or full expensing. For benefit-in-kind, pick-ups bought, leased or ordered before April 2025 keep the old treatment until they are sold, the lease ends or 5 April 2029, whichever comes first. Check with your accountant before choosing one over a van.
What is the difference between hire purchase and contract hire?
On hire purchase you own the vehicle after the last payment. On contract hire you rent it for a fixed term and mileage, often with maintenance included, then hand it back. Our hire purchase vs finance lease guide goes through the trade-offs.
Can I finance a used HGV?
Yes. Used tractor units and rigids are commonly financed. The lender will look at age, mileage, make and service history, and will usually limit the term so the vehicle is not too old by the end.
Can I finance a whole fleet?
Yes. Several vehicles can go on one agreement, or a lender can set up a facility you draw on as you add or replace vehicles. Fleet customers often mix hire purchase for vehicles they keep with contract hire for those they replace on a cycle.
Is there a grant for electric vans?
The plug-in van grant gives up to £2,500 off an eligible small van and up to £5,000 off an eligible large van. The dealer applies it at the point of sale, so the lender finances the lower price.
Will my van be charged in a Clean Air Zone?
Bath, Birmingham, Bradford, Bristol, Sheffield and Tyneside charge vans that do not meet their emission standards. Portsmouth charges HGVs but not vans. London runs its own Ultra Low Emission Zone and Low Emission Zone. Check the vehicle on GOV.UK before you buy.
Can I release cash from vans I already own?
Yes. Asset refinance advances money against vehicles you own outright, or have nearly paid off, while you keep driving them. Choose Release cash from vehicles I own on the form.
Can a new haulage business get finance?
Some lenders on the panel will consider it, particularly with a deposit, a personal guarantee or contracts already in place. An operator’s licence application and a clear plan for the first year of work both help.
Sources
- Finance & Leasing Association: asset finance new business grew by 1% in 2025
- Finance & Leasing Association: asset finance new business grew by 10% in August 2026
- HMRC VAT Notice 700/64: motoring expenses
- GOV.UK: Capital allowances on business cars
- HMRC: Double cab pick-ups (EIM23151)
- GOV.UK: Plug-in van grants
- GOV.UK: Vehicle Emissions Trading Schemes (zero emission vehicle mandate)
- GOV.UK: Driving in a Clean Air Zone
- GOV.UK: HGV levy bands and rates
- GOV.UK: Driving licence categories
- FCA register: Halo Corporate Finance Ltd (FRN 726655)
Written by the Compare Advantage team, Chorley. Facts checked against the sources above on 4 November 2026. This page is general information, not financial advice.
Compare Advantage Ltd (FRN 1028452, company no. 14289362) is an Introducer Appointed Representative of Halo Corporate Finance Ltd (FRN 726655). We introduce business finance enquiries to Halo. We are not a lender and do not give financial advice. If you take out finance, the lender may pay commission to Halo Corporate Finance, and Halo may pay us a fee for the introduction. Finance is subject to status and is available to UK businesses only.