How Van Hire Purchase Works
- You choose your van (new or used, from a dealer or private seller)
- Deposit paid (typically 10–20%; some lenders offer 0% deposit / 100% LTV)
- Fixed monthly payments over your chosen term (typically 24–84 months)
- You use and maintain the van throughout - it is treated as your asset for tax purposes
- At the end of the agreement you own the van outright (or a small "option to purchase" fee may apply)
- No mileage restrictions - unlike contract hire or leasing
Indicative HP Rates - Commercial Vans
| Finance Type | New Van Rate | Used Van Rate | Typical Term |
|---|---|---|---|
| New van, strong credit | From 7.9% APR | - | 24–84 months |
| New van, standard SME | 8.9% – 12.9% APR | - | 24–60 months |
| Used van, strong credit | - | From 9.9% APR | 24–60 months |
| Used van, adverse / new biz | - | 14.9% – 19.9% APR | 24–48 months |
Rates indicative only. Subject to credit assessment, trading history, asset type and lender criteria. Doulton Money Limited FCA No. 814533. Not all commercial vehicle finance products are regulated. Rates correct November 2026.
Worked Example
Ford Transit Custom L2, 2024 - HP over 60 months
- Asset value: £32,000
- Deposit: £3,200 (10%)
- Amount financed: £28,800
- Term: 60 months
- Representative APR: 9.9%
- Monthly payment (indicative): £612
- Total amount payable (indicative): £40,120
Example for illustration only. Actual rate subject to credit assessment and lender criteria.
HP vs Finance Lease - Which is Right for You?
| Finance Type | New Van Rate | Used Van Rate | Typical Term |
|---|---|---|---|
| Hire Purchase | Finance Lease | ||
| Own the van at end? | Yes | No (can sell to 3rd party) | |
| Mileage restrictions? | No | No | |
| VAT payable? | Upfront on full value | Spread over term | |
| Off-balance-sheet? | No | Depends on accounting standard | |
| Capital allowances? | Yes - 100% AIA available | No (lessor claims) | |
| Best for | Businesses wanting ownership | VAT-reg businesses wanting lower monthly payments |