A Comprehensive Guide to Van Running Costs
Running costs are important to think about when choosing your new van. Enter our guide to van running costs to help you prepare!
Whether you’ve already chosen your new van or are still deciding, preparing for the running costs is always a good idea. By keeping in mind all the costs you’ll need to cover, you can get organised and do everything you can to keep them down.
So, what are the running costs associated with a new van? Read our guide to find out.
Van finance
Possibly one of the first costs you’ll encounter when leasing a new van is van finance. Finance options are a great way to help break down the costs since new vans can be expensive up-front.
Most finance packages allow you to pay in manageable monthly instalments that fit into your budget. With some, you can choose the deposit and length of term, and there are a range of options to suit your needs.
At Vansdirect, for instance, we offer Hire Purchase, Contract Hire, or Van Fleet Leasing. Our van specialists will be happy to help tailor these to your business needs, so you can manage costs effectively.
If you do choose to take out van finance, make sure to keep on top of all payments and keep all paperwork handy to review when needed. There may also be certain mileage restrictions with some agreements you’ll need to stick to, otherwise you could end up paying more.
Van insurance
Insurance should always be high up on your to-do list, as without it you can’t legally drive your van on the road. In fact, if you’re caught driving your van without insurance, you could be fined up to £300 and receive six points on your licence.
The insurance premium you pay will depend on a range of factors, such as:
- Whether the van will be used for personal or business use
- Your age
- Your driving history
- The crime rate in your local area where the van will be kept
There are a few ways you can lower your insurance costs. For example, parking your van in a garage instead of on the street can lower your insurance, as the risk of theft or damage is reduced.
When sorting out your insurance, make sure to shop around and get a range of quotes. Did you know, we can help at Vansdirect? Check out our insurance partner and request a quote.
Taxes
You won’t be surprised to know that taxes will be another factor contributing towards your running costs.
Like insurance, paying tax is a legal requirement if you want to be able to actually drive your van. Rates will vary across vans as with cars, and they also depend on whether it is for business or personal use.
Commercial van drivers have to pay the Van Benefit Charge, or Benefit-in-Kind (BIK) tax as it’s commonly known. The current rate for 2024-2025 is £3,960 – the same as it was last year. But don’t worry – you’ll only pay a portion of this depending on the percentage of tax you pay.
MOT, servicing, and van maintenance
To keep your van running, it will need regular care and attention to make sure everything runs smoothly. That’s where MOTs, servicing, and maintenance come in.
MOTs are a legal requirement performed annually after a vehicle reaches three years of age. This means that you won’t have to worry about MOTs for the first few years after getting a new van.
Servicing is normally performed at regular mile intervals and is often done before an MOT. This is because it gives your van the chance to get thoroughly checked over for any issues that might cause it to fail.
MOTs and servicing are, of course, not done for free. Costs for MOTs will vary depending on the type of vehicle you drive, and you can view a full breakdown of these on the Government’s website.
Meanwhile, servicing prices depend on whether you are getting a full or interim service. It will also depend on whether any majors or advisories need addressing.
When calculating running costs for your van, make sure to factor in all your essential maintenance. Service plans can be a great way for you to put money aside for any repairs while covering costs on the day.
Fuelling or recharging
Fuelling up or recharging your van if you choose electric will form another big portion of your running costs.
Prices for fuel or electricity for charging will vary depending on which station you use. If you drive a petrol or diesel van, keep a list of your cheaper fuel stations to hand to help you save when filling up.
Scheduling charging at home can also come in handy for electric van drivers if you have a home charge point. This instructs charging to take place during off-peak times, allowing you to enjoy cheaper tariffs.
To help you plan for fuel or charging costs, why not browse our fuel card partners? These can be used at a wide number of stations, helping you enjoy small savings on fuel and electricity each time you visit. Perfect if you’re a fleet owner operating multiple vans!
Invoices are HMRC-approved and your receipts are all in one place, so you’ll easily be able to reclaim VAT.
Toll roads and Low Emission Zones (LEZs)
If you frequently use toll roads or drive in and out of Low Emission Zones (LEZs), you’ll also want to factor these into your running costs. LEZs can be costly, with non-compliant vehicles paying £12.50 a day in London.
If you drive an electric van, you won’t have to worry about congestion zone charges as you’ll be able to enter free of charge. Toll road charges, however, are required no matter the van you drive, so make sure to factor this into your budgeting.
You can plan ahead and find out the charges for different toll roads on the Government’s website.
Tips to reduce your van’s running costs
Want to maximise productivity while minimising costs? We hear you. To finish, we’ve put together a quick list of tips to help you reduce your van’s running costs.
1. Use van finance to help lower upfront payments and pay in manageable monthly instalments.
2. If you’re a business owner, make sure your business is VAT registered so you can claim back VAT.
3. Consider an electric van to help lower your running costs (fuel savings, congestion zone exemptions, tax savings etc).
4. Make sure your van is fitted with the latest security systems to keep both your van and equipment safe.
Start your journey at Vansdirect
Looking for a new van? You’re in the right place! At Vansdirect you’ll find a wide range of high-quality new vans for lease from top brands. Choose from Ford, Citroen, Peugeot, Vauxhall, Mercedes-Benz and many more.
Browse our latest van leasing deals available below and get a competitive deal on your next van. Need some advice? Get in touch with our van specialists who will be happy to guide you.