Spread the cost and own your van at the end.

What van hire purchase is, in plain English

With HP you put down a deposit (often 10%, sometimes nothing), then pay the balance plus interest in fixed monthly instalments. The van is yours to use from day one, and once the final payment clears it belongs to the company. There is usually a small option-to-purchase fee at the end.

Because the agreement is secured against the van, lenders can say yes to cases the high street turns down — including newly formed companies and used vehicles.

How it works for your company

• Deposit: from nothing up to whatever you choose — a bigger deposit lowers the monthly.
• Term: typically 24–60 months; longer terms mean lower payments but more interest overall.
• Ownership: the van is on the company balance sheet as an asset from the start.
• VAT: on a VAT-qualifying van your company can usually reclaim the VAT on the purchase price (not the interest) — see our VAT on used vans guide.
• Tax: HP often lets you claim capital allowances on the van and the interest as a business expense — confirm with your accountant.

Who hire purchase suits

HP is the right fit if you want to own the van long-term, you cover high mileage (there are no mileage limits), or you are buying a used van you plan to run for years. Tradespeople who keep vans well beyond the finance term — builders, plumbers, electricians, couriers — usually prefer HP.

Example costs

Representative example: borrow £18,000 over 48 months at 9.9% APR representative. 48 monthly payments of approximately £456. Total amount payable about £21,888 (excluding any deposit, option-to-purchase or documentation fees). This is illustrative only and not an offer — your rate and payments depend on the lender, the vehicle and your circumstances, and are subject to status.

Want a quick estimate? Use the van finance calculator, then get exact quotes from the panel.