Are you looking for some of the best and cheapest commercial van PCP deals?
Here at Evangate Financial Services, we have pulled together some personal contract purchase example deals for popular vans in the UK.
How does PCP work?
Generally, it is a type of finance that allows you to lease a van over a fixed period.
It allows business customers to drive a new (or used) van without paying the full purchase price upfront. Instead, you make lower monthly payments over the lease period.
The amount you pay each month is based on a few factors:
- Length of the agreement (typically 36 or 48 months)
- Initial deposit you pay upfront
- How many annual miles you will do (usually between 10k -15k miles)
- The age, type and size of the van (which determines its value)
At the end of the contract, you either pay a lump sum (known as the “balloon” payment) to purchase the van outright or return it to the finance company.
If you hand the van back, keep in mind that it may be subject to damage fees and excess mileage penalties.
You also have the option to use the van as a deposit for another vehicle (minus any outstanding fees).
FYI – you might have searched for van PCP, however the proper terminology for business vans is actually “hire purchase with a balloon payment”, “finance lease with a balloon payment” or “lease purchase”.
Cheapest Van PCP
If you want the best PCP van deals, you should speak to a finance broker.
It doesn’t matter if you are looking for a Ford Transit, VW Caddy, Mercedes Vito, Volkswagen Transporter, Vauxhall Vivaro, a camper van or even a Ford Ranger pick-up – brokers will often be able to offer a more affordable finance option on your next van.
Of course, you can ask the main dealers for their best van finance deals; however, they tend only to offer cheaper finance for their own vehicle brand.
Finding Cheaper Finance
The Evangate FS team are asking you to test us!
If you have a deal from a main dealer (or other finance provider), ask us for a free, no-obligation quote. We will check over 150 approved lenders to find the cheapest PCP van deals we can offer.
You might just find that we save you money which you can keep in your pocket.
Call us or fill out the form below to find out if we can get the best van finance deals or not.
Van PCP Examples
We looked at the most popular van models on UK roads today to show you the types of personal contract hire deals we can offer through our panel of lenders.
The following figures are based on new vehicles covering an annual mileage of 15,000 with a term of 4 years*.
| Vehicle | Deposit | Monthly Payments | Rate | Balloon Payment |
|---|---|---|---|---|
| Ford Transit Custom 280 L1 2.0 FWD 110ps | £5,950 | £516.33 | 6.331% | £12,499.87 |
| VW Caddy Cargo C20 N1 1.5TSI FWD 114ps | £4,470 | £393.40 | 6.273% | £9,074.90 |
| Peugeot Boxer 335 L2 2.2 BlueHDI FWD 140ps | £4,450 | £468.02 | 5.466% | £4,649.95 |
| Ford Ranger Diesel Pick Up DCab Wildtrak 3.0 | £8,820 | £810.77 | 6.126% | £16,474.83 |
| Land Rover Discovery 3.0 D350 Se (2024 model) | £10,935 | £925.35 | 6.432% | £24,324.75 |
We might be able to beat these figures further, depending on your personal circumstances.
Once we know the details about the commercial vehicle you wish to buy, our team will search for the lowest rates and work out your monthly payments and what’s left to pay at the final balloon payment.
Used Van PCP
Many people believe that PCP financing only applies to new vans, but it can also be used to buy a second-hand commercial vehicle.
Here are some things to know about using PCP for a used vehicle:
1. Interest Rates May Be Higher – Used van PCP finance deals might have higher interest rates applied to them compared to new vehicles. This is due to the increased risk of financing an older van.
2. Shorter Maximum Term Lengths – Used vehicle terms tend to be a maximum of 4 years, whereas new vehicles can have 5-6 year terms.
3. Deposits & Balloon Payments Tend to Be Bigger – Lenders often want larger upfront payments for used vehicles, typically 10%+ of the value or trade-in. The final balloon payment will be higher due to the quicker depreciation of older vans.
4. Mileage Allowances May Be Restricted – If the van already has high miles, the included mileage allowance on a used van contract might max out earlier at 3 years. Check this before signing the finance agreement to avoid excess fees.
While not as common as financing new commercial vehicles, used PCP van deals are an option if appropriately structured.
The Evangate FS team is well-versed in negotiating the best interest rates, term lengths, and mileage allowances with lenders to get you the best deal possible. So, you don’t have to fork out for a new van when a perfectly good second-hand one will do the job.
Van Finance FAQs
Is PCP used by companies or private individuals?
Personal contract purchase agreements tend to be for private individuals when buying cars for themselves. For commercial vans bought through actual companies, the correct terminology is “Lease Purchase”, “Hire Purchase with Balloon” or “Finance Lease with Balloon”. But don’t worry – we’ll explain the different finance offers when we speak with you.
Is PCP good for high mileage?
The short answer is no.
PCP financing is generally not the best option for vans that will do high mileage (e.g. delivery vans/couriers).
Because these deals are structured around an estimated annual mileage that you agree to at the start of the contract – which is then used to calculate the monthly payments and the end “balloon” payment amount.
If you go over the agreed mileage, you will be charged excess mileage -this can be between 10 and 15p per mile.
Is PCP better than HP?
Yes and no is the answer.
PCP tends to be better for those wanting lower monthly costs and who frequently wish to upgrade to newer spec commercial vans.
Additionally, the balloon payment at the end of the agreement factors into the van’s resale value. The resale or trade-in value will be much lower for a van with very high miles.
HP works better for buying a van you intend to keep for the long term with no mileage limits.
Arranging Van Finance
Evangate FS can arrange finance for most types of vans, whether new or used. Whether you are looking for one van or a fleet of commercial vehicles, we will take the hassle out of sorting out the finances.
We work with all types of businesses and sole traders and have helped everyone from telecommunications companies to local delivery firms to charities to spread the cost of their vans more affordably.
If you are looking to finance a bigger vehicle, such as an HGV lease finance or truck finance, please pick up the phone to us. Or if you happen to be a business with bad credit history, we can potentially still help you.
And if you have a peculiar situation that is out of the norm, our team is up for the challenge.
For example, when a recent customer required a higher mileage allowance of 150,000 miles on a deal over 4 years, we managed to secure a low 4.9% annual interest rate.
Take us up on our “cheapest PCP van deal” challenge today.
*The figures in the table are based on purchases by Limited companies and include VAT Only deposits for hire purchase or the monthly plus VAT for finance lease. Prices were correct at the time of publishing this post.
