Compare the different van finance options available to tradesmen in the UK. Understand the pros and cons of hire purchase, PCP, and leasing for your work vehicle.
Key Takeaways
- HP is best if you want to own the van
- PCP offers lower monthly payments with flexibility
- Leasing suits regular vehicle changers
- Consider total cost over the agreement term
- Factor in tax benefits for business vehicles
Why Van Finance Makes Sense for Tradesmen
Your van is more than transport - it's your mobile workshop, storage facility, and professional image all in one. For most tradesmen, financing a van rather than buying outright makes solid financial sense.
Van finance allows you to get a reliable, newer vehicle while keeping cash available for tools, materials, and other business needs. Plus, the monthly payments are often tax-deductible.
Hire Purchase (HP) Explained
With HP, you pay a deposit (typically 10-20%) and then make fixed monthly payments over 2-5 years. At the end, the van is yours.
Pros: You own the van outright, no mileage restrictions, can modify the vehicle as needed.
Cons: Higher monthly payments than PCP, responsible for maintenance and depreciation.
PCP (Personal Contract Purchase)
PCP offers lower monthly payments but with a balloon payment at the end if you want to keep the van.
Pros: Lower monthly costs, flexibility to change vehicle regularly.
Cons: Mileage restrictions, balloon payment required to own, potential end-of-contract charges.
Leasing Options
Contract hire or leasing means you never own the van but enjoy fixed monthly costs with maintenance often included.
This works well for tradesmen who want to change vehicles every 2-3 years and prefer predictable costs.
About the Author
Tradesman Finance Team
Finance SpecialistsOur team of finance specialists has over 50 years of combined experience helping UK tradesmen access the funding they need. We work exclusively with trade businesses, giving us deep insight into the unique challenges and opportunities in the sector. From electricians to builders, plumbers to roofers, we understand your industry and speak your language.