Electric van models currently available
The electric commercial van market has matured significantly. Key models include: Ford E-Transit (panel van and custom); Mercedes-Benz eSprinter; Volkswagen e-Crafter; Vauxhall Vivaro-e and Combo-e; Renault Kangoo E-Tech; Stellantis e-Dispatch and e-Expert. Most manufacturers now have electric van options across the full payload range.
HP vs Finance Lease for electric vans
The choice between HP and Finance Lease on an EV requires extra consideration of residual values. EV technology is evolving rapidly - battery range and performance are improving, which affects how the van holds its value compared to diesel. Finance Lease depends on accurate residual value assumptions at the outset; if the actual market value at the end of the term is lower than the assumed residual, the finance company may not achieve the expected return from the sale.
HP removes this risk - you own the van regardless of what happens to residual values, and benefit from capital allowances including the Annual Investment Allowance.
EV-specific tax benefits
- Annual Investment Allowance (AIA) - deduct the full purchase price from taxable profit in year one, up to the AIA limit
- Clean Air Zone entry free of charge on pure electric vans
- Nil van benefit charge for zero-emission company vans (versus the standard flat-rate charge for diesel)
- OZEV grants may be available for some models - check eligibility at the time of purchase
Clean Air Zone implications
Many UK cities have implemented or are implementing Clean Air Zones (CAZs) that charge diesel vans for entry. An electric van enters CAZs free of charge, which is a significant operational advantage for businesses making regular deliveries in urban areas. This should be factored into the total cost of ownership comparison with diesel.
Which lenders do EV van finance?
Lombard, Novuna, Black Horse, Aldermore and Santander Consumer all offer specific EV van finance products. Some lenders apply different residual value assumptions for EVs than diesel, which affects Finance Lease pricing. We stay current with EV-specific lender criteria and pricing.