• No Deposit Van Finance - Low Rate and 0 Deposit
  • No Deposit Van Finance - Low Rate and 0 Deposit

No Deposit Van Finance - Low Rate and 0 Deposit

Discover how to secure leasing deals for vans without paying a deposit

When it comes to investing in new or used vans, finding one that fits within your budget is an important requirement. 

Financing your van is a cost-effective way of securing the vehicle you want and is a very popular choice with many of our customers here at Loads of Vans in North Cheam, South London. 

Even better, you may be able to take advantage of no deposit van finance to help make your purchase all the more affordable. In this dedicated finance article, we answer your no deposit van finance questions to help you decide if it’s the route for you… 

What is no deposit van leasing?

In short, no deposit leasing means you can lease vans without an initial upfront payment. Zero deposit van leasing is a great way to lease a van if you do not want to pay anything prior to your agreed monthly fee.

No deposit van leasing still allows you to benefit from all the perks associated with van finance leasing. From flexible repayment periods to tax advantages, discover the many reasons why leasing a van is the preferred finance option for business owners by reading The Benefits of Leasing a Van for Your Business blog. 

Do you need a deposit to lease or finance a van?

No, you don’t necessarily need to pay an initial deposit in order to finance or lease a van. No deposit van leasing means you won’t have to pay a lump sum upfront as part of your finance agreement, nor the associated VAT costs. 

It’s important to know you won’t be penalised in any way by not putting down an initial deposit, but your monthly repayments or length of payment period may be slightly increased as a result. However, many lenders will require at least one month's upfront payment.

Watch our ‘Finance Leasing Explained’ video below to discover the many benefits of van leasing:

Is it hard to get van finance with zero upfront payment?

Although applying for zero deposit van finance is accessible to anyone, you will need to have a good credit score to be considered and accepted. A finance lender will look into your credit history before they decide to approve or deny your no deposit finance request. 

Your financial history will be more heavily scrutinised with no deposit than if you made an upfront payment, because you are borrowing more money on the van. This means that you are a higher risk to the lender, so your loan provider will need to know you can afford the monthly repayments.   

Do you know what your current credit score is? To understand more about good and bad credit scores and how it affects your van finance application, read our Van Finance for Bad Credit article to find out your options. 


The pros and cons of no deposit van leasing

As with any type of finance, there are both advantages and disadvantages when it comes to choosing a credit option to suit you. Before you agree to any form of finance, you need to understand if it is the right choice for you and your business. 

To help you make a decision when it comes to no deposit van leasing, we’ve highlighted the pros and cons so you can decide for yourself if it is the best option for you…

No deposit financing for vans - advantages:

  • You won’t need to dip into your savings to pay an upfront lump sum.
  • Whether you choose to put down a deposit or not, the total repayment amount will still be the same.
  • Approval for no deposit van finance is quick and simple if you have a good or excellent credit score.  

No deposit financing for vans - disadvantages:

  • The more you pay upfront means the lower the ongoing monthly payments, so no deposit means you’ll pay higher monthly fees.
  • The length of the repayment period may be longer without putting down an initial deposit. 
  • No deposit van finance may be harder to access for those with a poor or bad credit score. 

Can I lease a van for a year?

Van leasing contracts typically last between 12 months up to five years, so choosing to lease a van for just a year is absolutely viable. Leasing a van without long-term commitment can be an appealing option for many reasons. 

It may be that you’d like to trial a certain make and model of van for a year first, or wish to lease a van during a short-term period for an employee. Whatever your reason for a 12-month van lease, you can enjoy the many benefits that come with a finance lease agreement.

Not being beholden to a long-term contract and the commitment that comes with it is a great choice if your circumstances are set to change. Head over to the Van Finance Deals page on our website to explore the many options available to you.


What happens at the end of my 12-month leasing period?

At the end of your agreed van finance 12-month term, there are a number of options available. You can either:

  1. Sell the van to a third party and keep 95% of the sale proceeds.
  2. Agree on a one-off secondary rental fee and continue to use the van for a further 12 months.
  3. Part-exchange the van and use the equity value as a deposit on your next van.

Whatever you decide to do next, it’s good to know that there are flexible options available to you, depending on your circumstances at the time. 

Can you buy a van on finance?

Financing a van for business is the more traditional choice when it comes to ownership, but leasing is proving to be a popular option too. To decide which is the best option for you, we encourage you to compare both in order to understand which will suit your current financial situation... 

Leasing versus Finance - pros and cons

So which do you choose? To help with your decision, we’ve listed the advantages and disadvantages of leasing and financing a van so you can compare all the facts:


Van Leasing Advantages

Van Finance Advantages

You can get a new van every few years, and the agreement is flexible if you wish to end the lease earlier (subject to an agreed settlement figure)

You can own the van at the end

Leasing a van can often be cheaper than financing the vehicle

You have a number of flexible options as part of your agreement

There are no restrictions on mileage

You get a brand new van but don’t have to keep it when the contract is finished

There are no penalties relating to the condition of the vehicle

Choose a finance plan for you; from Contract Purchase to Hire Purchase

The better you look after the vehicle, the more money you can sell it for

You aren’t limited to annual mileage restrictions with Hire Purchase

Usually, Lease deals have the best discounts available, but this isn't always guaranteed

You can end a finance agreement prior to the contract period

Van Leasing Disadvantages

Van Finance Disadvantages

You can not hand the vehicle back at the end of the agreement. Instead, you must sell it to a third party for its current market value

Contract Purchase is subject to mileage restrictions if you don’t keep the van

The van will depreciate over the duration of the agreement

You don’t get a new van as often as a lease deal

If a customer wants to come out of the Lease, a settlement figure is generated which will need to be paid before the vehicle can be sold

The value of your van will likely depreciate over the fixed term period

Can you lease an electric vehicle?

Just as with standard petrol or diesel van, you can lease an electric van too. As EVs grow in popularity, so do electric van lease and finance applications. 

Leasing an electric van is a perfect option for you if you wish to lower your carbon footprint, cut hefty fuel costs and enjoy the smooth driving experience that comes with an EV. What’s more, due to the reduced mechanical components in an electric van, servicing is often cheaper, quicker, and fewer between. 

You can choose from a wide range of electric and hybrid vans in the UK, including the popular Nissan e-NV200, Peugeot e-Expert, and Maxus eDeliver 3 - each stocked here at Loads of Vans. 

Zero or low down payment finance at Loads of Vans

When it comes to securing a low deposit finance deal on a new or used van, then here at Loads of Vans in North Cheam, South London, we can help.

Our experienced and dedicated team can explain the finance options available to you and steer you in the right direction. Whether you choose finance leasing, hire purchase (HP), or business contract hire (BCH), our packages are tailored to suit the needs of you and your business. 

Let’s start a conversation; you can either submit an online enquiry, use our live chat function, pick up the phone, or come and visit us in person - we’re well-located for those living or working in London. 

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