How Commercial Vehicle Finance Rates Are Set
Lenders price commercial vehicle finance based on a combination of factors: your business credit score and trading history, the age and type of vehicle, the loan-to-value ratio (deposit size), the finance structure (HP vs lease), and the term length. Understanding these levers helps you negotiate a better deal or structure your application to attract a more competitive rate.
Current Rate Benchmarks - October 2026
| Vehicle Type | Finance Type | Business Profile | Rate Range (APR) | Typical Deposit |
|---|---|---|---|---|
| New van / LCV | Hire Purchase | Established, clean credit | 5.9% – 7.5% | 10% |
| Used van (under 5 years) | Hire Purchase | Established, clean credit | 7.0% – 9.5% | 10% |
| New HGV / tractor unit | Hire Purchase | Established, clean credit | 6.5% – 8.5% | 10% |
| Used HGV (5–10 years) | Hire Purchase | Established, clean credit | 9.0% – 12.5% | 15%–20% |
| Van fleet (5–20 vehicles) | Finance Lease | Established, clean credit | 5.5% – 7.0% | N/A (first rental) |
| Any vehicle | HP or Lease | Start-up (<2 years) | 9.0% – 15.0% | 20%–30% |
| Any vehicle | HP | Adverse credit / CCJ | 12.0% – 20.0% | 20%–35% |
Lender-by-Lender Overview
Close Brothers Asset Finance
One of the UK's most flexible commercial vehicle lenders. Strong appetite for older vehicles, adverse credit and non-standard sectors. Rates are not always the lowest but their acceptance criteria are broader than most. Good for owner-drivers and sole traders.
Lombard (NatWest Group)
Competitive rates for well-established businesses with strong credit. Preferred lender for national haulage companies and fleet operators. Less flexible on start-ups and adverse credit cases.
Shawbrook Bank
Particularly good on balloon HP structures and larger-ticket HGV transactions. Flexible on term lengths and residual values. Competitive for established operators financing premium vehicles.
Aldermore
Strong challenger bank with appetite for SMEs, start-ups and sole traders. Reasonable rates for established businesses; willing to consider applications with minor adverse credit history.
United Trust Bank
Specialist in complex and non-standard commercial vehicle finance cases. Useful for vehicles that mainstream lenders won't touch - older stock, non-standard configurations, or borrowers with complex credit histories.
How to Get the Best Rate
The most effective ways to improve your rate are: provide a larger deposit (even 5% extra can move the rate meaningfully); present clean, up-to-date management accounts; apply through a broker with panel access rather than direct to a single lender; consider HP over lease if your credit is strong (lenders often price HP more keenly); and avoid multiple credit applications in quick succession.