No-Deposit Van Finance Costs

Key highlights

• No-deposit finance funds 100%, keeping capital in the business
• Higher total interest because you finance the full price
• Strong deals from around 6.55% p.a., indicative and lender-assessed
• One application compares 80+ lenders' no-deposit options at once

The real cost of no-deposit van finance

No-deposit finance lets you take delivery of a work van without money down, with the lender funding the full purchase price. The cost is simple to understand: financing a larger amount means higher monthly repayments and more total interest across the term than if you had put in a deposit. Some lenders also price no-deposit deals a little above deposit-backed ones to reflect their greater exposure. Strong, asset-backed applications can still start from around 6.55% p.a., though that is indicative and subject to lender assessment. In short, you trade a slightly higher overall cost for keeping your cash available right now.

Why operators go with no deposit

For a lot of businesses, keeping cash on hand matters more than shaving the total interest bill. Capital left in the business covers stock, wages, fuel or a slow patch, and a work van such as a HiAce, Transit or Sprinter typically starts generating income straight away, often offsetting the higher repayment. No-deposit finance also lets you move fast when the right van comes up instead of waiting to save. Whether it suits you depends on your margins and how hard the van will work. If your cash earns more inside the business than sitting as a deposit, no-deposit is a sensible option.

What raises or lowers the cost

Several things move a no-deposit van deal. A solid ABN history, clean credit and GST registration help you reach sharper pricing even without a deposit. A newer, in-demand van gives the lender stronger security, which supports a lower rate. Older vans, thinner credit and newer ABNs price higher, and some lenders will not extend full no-deposit terms to higher-risk profiles. Your term and any balloon payment also change the total cost. Because lenders treat no-deposit lending differently, the same borrower can receive very different quotes, so comparing across many is the practical way to keep the cost down.

Weighing no deposit against a small deposit

Before committing, it helps to model both structures. Even a modest deposit or trade-in lowers the financed amount, cutting your repayments and total interest and sometimes improving the rate. The counterpoint is that a deposit ties up cash the business may need. There is no single right answer; it depends on your margins, how quickly the van pays for itself and the strength of your cash buffer. A good broker will lay both options side by side so you can see the genuine difference in repayments and total cost, rather than choosing on instinct alone.

Securing a sharp no-deposit deal

No-deposit appetite differs a lot between lenders, so comparison is where the value sits. Overdrive's broker, Simon Kendrick, lodges one application across 80+ banks and non-bank lenders and identifies those offering genuine no-deposit van finance at competitive pricing, without multiple enquiries marking your credit file. That means you can compare no-deposit and small-deposit structures together. For eligible applicants, same-day pre-approval and 24-48 hour settlement may be available, subject to lender criteria and a complete, well-presented application, letting you preserve your working capital and still act quickly when the right van comes along.

If keeping your capital working beats tying it up in a deposit, no-deposit van finance is worth a look. Send Overdrive your ABN details and the van you have in mind, and it will compare 80+ lenders for competitive no-deposit pricing, then show how it compares to a small-deposit structure. It is obligation-free, and you will see clear repayment and total-cost figures before making a decision.