HGV Finance Rates 2026 — Updated October 2026
- HGV HP rate APR range — new and used (October 2026)
- 5.5%–8.0%HGV HP rate APR range — new and used (October 2026)
- Current emission standard — significantly better rates than Euro 5
- Euro 6Current emission standard — significantly better rates than Euro 5
- Typical maximum vehicle age at end of HP term for mainstream lenders
- 10 yearsTypical maximum vehicle age at end of HP term for mainstream lenders
- DVSA (Driver and Vehicle Standards Agency) compliance — operator licence risk assessed
- DVSADVSA (Driver and Vehicle Standards Agency) compliance — operator licence risk assessed
HGV finance rates in October 2026 range from 5.5%–8.0% APR for hire purchase depending on vehicle age, specification, and fleet size. HGV finance is a mainstream asset finance product with good lender appetite — haulage is a fundamental component of the UK economy and lenders understand the risk profile. Euro 6 engines (mandatory since 2014 for new vehicles) command significantly better rates than older Euro 5 vehicles, reflecting the lower compliance risk and broader residual value market.
HGV Finance Rates by Vehicle Type and Age — October 2026
Swipe the table sideways to see every column.
| Vehicle type | Rate (APR) | Term | Deposit | Age limit (end of term) | Notes |
|---|---|---|---|---|---|
| New artic (Euro 6, 44t) | 5.5%–7.0% | 3–5 years | 10%–15% | N/A (new) | Volvo, Scania, DAF — main manufacturer HGV HP panel. |
| New rigid (Euro 6, box/curtainsider) | 5.5%–7.0% | 3–5 years | 10%–15% | N/A (new) | Good lender appetite. Multiple competitive offers typical. |
| Used artic under 5yr (Euro 6) | 5.5%–7.5% | 2–4 years | 15%–20% | Max 10yr end of term | Service history essential. Inspection required. |
| Used rigid under 5yr (Euro 6) | 5.5%–7.5% | 2–4 years | 15%–20% | Max 10yr end of term | Good lender appetite. Service history required. |
| Used artic 5–10yr (Euro 6) | 6.5%–8.0% | 2–3 years | 20%–25% | Max 10yr end of term | Specialist lenders. Higher deposit. Restricted term. |
| Euro 5 (pre-2014 emission standard) | 7.0%–9.0%+ | 2–3 years | 25%–35% | Max 10yr | ULEZ and clean air zone risk. Very restricted lender panel. |
| Specialist HGV (tanker, tipper, HIAB) | 6.0%–8.5% | 3–5 years | 15%–25% | Max 10yr | Specialist body/chassis combination. Equipment valuation required. |
What determines your rate
Euro 6 vs Euro 5 — the clean air zone impact
Euro 5 HGVs (produced before 2014) face increasing restrictions in UK Clean Air Zones (CAZs). Birmingham, Bradford, Portsmouth, and other cities charge Euro 5 HGVs for access. London's ULEZ includes HGVs in the outer zone. As CAZs expand, Euro 5 vehicles face reduced residual values and increasing operating costs. Lenders reflect this in their appetite: most mainstream HGV lenders will not finance Euro 5 vehicles at competitive rates, or at all for vehicles nearing 10 years old. DBF identifies which specialist lenders will consider Euro 5 HGVs and advises on the economics of replacing Euro 5 with Euro 6 via HP.
Operator licence and DVSA compliance
HGV operators must hold an operator's licence issued by the Traffic Commissioner. Lenders check that the borrower holds a valid operator licence before financing HGVs — a business operating HGVs without a licence faces significant regulatory risk that lenders are not prepared to take on. DVSA inspection records (maintenance standards, driver hours compliance) may also be reviewed for larger fleet finance applications. DBF confirms operator licence status and DVSA standing before approaching lenders.
Fleet finance — multiple units, single facility
Operators adding multiple HGVs to a fleet can access fleet finance facilities — a single HP agreement covering multiple vehicles, often at better rates than individual unit finance. Fleet finance requires: a strong balance sheet, 3+ years trading, clean operator licence record, and typically a minimum fleet of 5+ units. DBF accesses fleet finance from specialist fleet lenders who offer tailored terms for growing haulage and logistics businesses.
HP vs contract hire for HGVs
Contract hire (full-service lease including maintenance, tyres, and roadside assistance) is widely used for HGV fleets — particularly for operators who want predictable costs without residual value risk. Contract hire monthly costs are higher than HP (the leasing company prices in its profit and residual value risk), but the all-inclusive cost can be advantageous for operators without in-house maintenance facilities. DBF advises on the HP vs contract hire total cost comparison for each fleet scenario.
Worked cost example
Haulage company acquiring 2× Volvo FH 2023 artic tractors. New. £190,000 each = £380,000.
Fleet: 12 units, operator's licence clean, 11 years trading. 10% deposit each = £19,000 × 2.
Fleet HP (specialist fleet lender via DBF): 5.8% APR over 4 years. Both units.
Monthly per unit: £4,000. Total monthly: £8,000. Total interest (both): £42,026.
Euro 6 advantages: no CAZ charges. ULEZ compliant. Broad secondary market.
Residual value (each, after 4yr): estimated £60,000–£75,000 (Volvo FH strong secondary market).
Contract hire alternative: £2,800/unit/month full-service. Monthly: £5,600.
Lower monthly — but no residual at end. Over 4 years: £268,800 in lease costs.
HP 4yr total: £380,000 + £42,026 interest = £422,026. Own outright. Residuals: est £130,000.
Net HP cost: £422,026 - £130,000 = £292,026 vs contract hire £268,800.
Contract hire £23,226 cheaper over 4 years — but HP delivers ownership of a £130,000 asset.
DBF recommendation: HP for long-term owner-operators. Contract hire for businesses prioritising cashflow and certainty.
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Rate context and outlook
Bank Rate is 3.75% after the 17 September hold. Variable business facilities (revolving credit, invoice finance) move only with Bank Rate.
Fixed-rate hire purchase and leases are funded against swap rates, so some funders may nudge fixed pricing up after the September swap move. Quotes are typically held for 30 days.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
More detail
Finding the most competitive HGV or artic finance rate in October 2026 depends on your credit profile, the age and specification of the vehicle, your deposit, your operator history and how long your business has been trading. This guide compares all major independent HGV lenders and explains the qualification criteria for each rate band.
All Independent HGV Lenders Compared - October 2026
| Lender | APR Range | Min Loan | Max Term | Adverse Credit | Sole Traders | New Business |
|---|---|---|---|---|---|---|
| Lombard (NatWest) | 4–11.5% | £25,000 | 7 years | No | Limited | No |
| Close Brothers | 4.5–12% | £10,000 | 7 years | Yes | Yes | Yes |
| Shawbrook Bank | 5–13% | £10,000 | 5 years | Limited | Limited | Limited |
| Aldermore | 5.5–14% | £10,000 | 7 years | Yes | Yes | Yes |
| Haydock Finance | 6–16% | £10,000 | 5 years | Yes | Yes | Yes |
| Time Finance | 6–18% | £10,000 | 5 years | Yes | Yes | Yes |
Rates indicative for October 2026 based on a typical artic tractor unit. Actual rate depends on individual credit profile, asset details and loan structure.
Qualification Factors
Credit History
Clean credit (no CCJs or defaults in past 3 years) unlocks rates from 4%. CCJs under £500 or over 24 months old are treated more leniently by Close Brothers and Aldermore. Active CCJs, ongoing defaults or IVAs narrow the field to Haydock Finance and Time Finance, with rates typically 12–18%.
Time in Business
Over 2 years: all lenders. 12–24 months: Close Brothers, Aldermore and Haydock with standard documentation. Under 12 months: Haydock Finance and Time Finance are primary options; deposit of 25–30% typically required. A haulier new to running their own operation but with 10+ years as a driver is treated more favourably than a complete newcomer to transport.
Operator Licence
Most lenders expect sight of a valid Operator Licence (O-licence) for HGV finance, or evidence that one is applied for. A Restricted O-licence (own-goods only) is treated differently from a Standard O-licence. If you are a new business in the process of obtaining your O-licence, some lenders will agree terms in principle pending its award.
Asset Age
New artics attract the broadest lender appetite and lowest rates. Vehicles 3–5 years old are accepted by all lenders. Over 5 years: Close Brothers, Aldermore, Shawbrook and Haydock remain active. Over 8 years: Haydock Finance and Time Finance are the primary options, and higher deposits are typical.
Deposit
For prime-credit established operators, some lenders will fund 100% LTV. Most cases benefit from a 10–20% deposit. Adverse credit or new businesses typically need 25–30%.
How to Get the Best HGV Finance Rate - 5 Tips
- 1Use a broker to approach multiple lenders simultaneously. A single enquiry to Doulton Bridging Finance is assessed across our panel - you receive the best offer, not just the first available.
- 2Have your O-licence documentation ready. Lenders move faster and price more confidently when they can see a valid O-licence or a formal application confirmation.
- 3Provide haulage contracts or load confirmation. Evidence of work in hand - even a letter of intent from a haulage contractor - significantly strengthens your application.
- 4Consider a deposit if you are borderline. A 20% deposit on an adverse credit application can move you from a decline to an approval, and often reduces the rate by 2–3%.
- 5Check manufacturer promotional rates for new vehicles. For new DAF, Volvo or Scania artics, the captive finance arm periodically runs sub-5% promotions that independent lenders cannot match - but these are only available on new vehicles and require clean credit.
Frequently asked questions
What are HGV finance rates in October 2026?
New Euro 6 artics and rigids: 5.5%–7.0% APR over 3–5 years. Used Euro 6 under 5 years: 5.5%–7.5% APR. Older Euro 6 (5–10 years): 6.5%–8.0% APR. Euro 5: 7.0%–9.0%+ on restricted terms. Minimum deposit: typically 10%–25% depending on age.
Can I finance a Euro 5 HGV?
Yes — but the lender panel is very restricted and rates are higher (7.0%–9.0%+). As Clean Air Zones expand, Euro 5 vehicles face increasing operational restrictions and falling residual values. DBF advises on the economics of financing a Euro 5 replacement with a new Euro 6 — in many cases, the Euro 6 upgrade pays for itself through ULEZ/CAZ charge savings and better resale value.
Do I need an operator's licence to get HGV finance?
Yes — HGV lenders require a valid operator's licence before financing vehicles. A business operating HGVs without an operator's licence faces regulatory risk that lenders will not accept. DBF confirms operator licence status and DVSA standing before approaching lenders.
Is fleet finance cheaper than individual unit HP?
Fleet HP facilities (covering multiple units under a single agreement) can offer marginally better rates than individual unit HP due to the larger overall facility size and the borrower's established fleet operator profile. Savings are typically 0.25%–0.75% APR. Fleet facilities also simplify administration — one agreement, one lender relationship.
How long does HGV finance take to arrange?
Standard HGV HP (new vehicle from main dealer): 5–10 working days. Fleet HP (multiple units): 2–3 weeks. Used vehicle HP (requiring inspection): 10–15 working days. DBF manages the process including condition inspection coordination and operator licence verification.
What is the best available APR for HGV finance in October 2026?
For prime-credit established limited companies financing new artics, Lombard offers rates from 4%. Most clean-credit businesses with 2+ years of trading achieve 4.5–7% through a broker. Adverse credit or new businesses should budget for 9–18%.
Can I get 100% HGV finance with no deposit?
Yes - for established operators with clean credit, several lenders including Close Brothers and Lombard will fund up to 100% of the asset value. New businesses or adverse credit applicants will typically need a deposit of 25–30%.
How does my O-licence affect my HGV finance application?
A valid O-licence demonstrates to lenders that your operation is lawfully established. Most lenders expect to see it. New operators who are awaiting their O-licence can sometimes obtain agreement in principle, with drawdown conditional on the licence being granted.
Is HP or finance lease better for an HGV?
HP suits operators who want to own the vehicle and keep it long-term. Finance Lease is often better for operators running on a 3–5 year replacement cycle who want to manage residual value risk and prefer off-balance-sheet treatment. Total cost comparison depends on your specific rate and residual value assumptions - speak to Doulton Bridging Finance.
Can a new business get finance?
Yes, though many funders want 1–2 years of trading or a larger deposit; directors' personal credit matters more for young businesses.
Is VAT charged on hire purchase?
On HP, VAT is paid upfront with the deposit and can usually be reclaimed; on leases it is added to each rental.
What is a balloon payment?
A larger final payment that lowers the monthly cost; you pay it, refinance it or return the asset, depending on the product.
Do I need to put down a deposit?
Usually 0%–20%, depending on the asset, its age and your trading history.
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Independent whole-of-market advice · FCA No. 814533