Key highlights
- Chattel mortgage, finance lease and hire purchase compared
- Chattel mortgage is popular for delivery operations
- Shorter terms can match high-mileage intensity
- Structure finance to suit heavy daily distance
- One broker matches your usage across 80+ lenders
Delivery vans work hard and cover serious distance, so the finance behind them should suit that intensity. Several structures can fit a delivery operation. Here is how the main options compare.
What are the finance options for delivery vans?
The main options for financing a delivery van are the chattel mortgage, finance lease and commercial hire purchase. A chattel mortgage is popular because you generally own the van from the start while the lender holds security, which can suit businesses wanting the asset on their books. A finance lease works differently, with the lender retaining ownership and you leasing the van. Each has distinct cash-flow and accounting characteristics, so the best fit depends on your circumstances.
How to structure finance for high mileage
Delivery vans accumulate kilometres quickly, which affects both maintenance and resale. Some operators choose shorter terms to match the intensive use, while others prefer lower monthly repayments over a longer period. A balloon payment can reduce monthly outgoings but leaves a lump sum at the end. The right structure balances your cash flow against how long you realistically expect to keep the van in service.
How to find the right delivery van finance
With many lenders and structures available, comparison helps you land on the right combination. Simon Kendrick can review how you use your delivery van and match you to suitable options across the Overdrive panel. For the tax treatment of any structure, check with your accountant or registered tax adviser. Approval remains subject to lender criteria.
Running deliveries and need the right van finance? Overdrive can prepare an obligation-free, indicative quote. The enquiry is a soft check with no impact on your credit score. Contact Simon to compare your options.
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