Electric Van Finance: The Future of Business Transport

Why This Guide Matters

Let’s face it, the world of business vans has been about as exciting as a beige cardigan—until now. Electric vans are crashing onto the scene, promising to turn your company’s delivery runs from diesel-chugging monotony into something a bit more 21st century. But with all the buzzwords, grants, tax chat, and finance gobbledygook, it’s easier to get lost than a satnav in a car park. That’s why we’re here: to steer you through the electric van finance jungle without running out of charge halfway.

The Basics Explained

So, what’s all this about electric vans? Essentially, they’re like your trusty diesel, but quieter, cleaner, and don’t leave you smelling like you’ve been napping in a fuel station. Instead of an engine that’s louder than your sales manager on a Monday, you get a silent, battery-powered workhorse. The UK government is shoving us down this electric road too—think grants, congestion charge exemptions, and lower running costs. But here’s the rub: electric vans aren’t cheap. That’s where finance comes in, letting you get the keys without selling a kidney.

Types of finance include hire purchase, contract hire, and good old personal contract purchase (PCP). Each has its quirks, so you’ll want to pick the one that won’t leave you regretting your life choices come year-end.

How It Affects You

You know your trusty diesel van? It’s about to go the way of the fax machine. London’s Ultra Low Emission Zone (ULEZ) is just the start. Soon, turning up to a client in a smoky diesel could be as welcome as a wasp at a picnic. Electric vans let you dodge charges, look green, and keep the neighbours happy. Plus, the running costs are lower—electricity is cheaper than diesel, and there’s less to go wrong under the bonnet. No more buying oil in bulk or fixing something that sounds like a gremlin with a wrench.

But don’t get carried away. Electric vans have their quirks. Range anxiety is real—especially if your delivery patch is more rural than urban. Charging infrastructure is expanding, but you’ll still need to plan your routes like a military operation.

Our Approach

At Kandoo, we don’t just throw finance at you like confetti and hope for the best. We know every business is different—your cousin’s plumbing firm doesn’t have the same needs as your artisan bread delivery service. We’ll help you cut through the hype, jargon, and eco-babble to work out whether an electric van actually fits your business.

Here’s our method:

1. Needs analysis: How far do you actually drive? Where will you charge? What’s your payload? 2. Compare finance options: We’ll break down PCP, lease, and hire purchase so you can see the costs, pros, and cons in plain English. 3. Government incentives: Grants, tax breaks, and the latest policies—if there’s free money, we’ll sniff it out. 4. Total cost of ownership: It’s not just the sticker price. We’ll show you what you’ll really spend over the next few years. 5. Flexible terms: No one likes being locked in. We’ll help you find terms that work for your business, not just the lender’s bonus.

We believe in transparency, a bit of tough love, and making sure you end up with a van that’s actually fit for purpose—not just a shiny brochure.

Before You Decide

Before you go full Del Boy and order a dozen electric vans, ask yourself:

• How often do you drive long distances?
• Is there reliable charging near your depot or home?
• Are your customers in clean air zones?
• Can you handle a higher monthly payment for lower running costs?
• What’s your plan if battery tech leaps forward in five years?

If your routes are mostly urban, electric makes a lot of sense. If you’re criss-crossing the Highlands, maybe not—yet. And remember, the government’s grants won’t last forever, so don’t dawdle.

What’s Real, What’s Hype

You’ve heard the claims: electric vans are cheaper, greener, and the answer to all your business prayers. But let’s not get carried away.

What’s real:

• Lower daily running costs
• Tax incentives
• Zero emissions zones made easy

What’s hype:

• “Unlimited range”—unless you tow a caravan up Ben Nevis
• “Free charging everywhere”—if you can actually find a working charger
• “No maintenance”—you’ll still need tyres and brakes, mate

Pros & Cons

Pros	Cons
Cheap to run	High upfront cost
Grants and tax savings	Charging infrastructure still patchy
Quiet, smooth drive	Range can be limiting
Eco-friendly image	Battery tech evolving fast
Exempt from ULEZ and congestion	May not suit all routes/businesses

Other Options to Consider

Electric vans aren’t the only show in town. Here’s what else you could look at:
• Hybrid vans: A halfway house with both a petrol engine and battery. Good if you do mixed driving.
• Euro 6 diesels: The cleanest of the old guard. Not future-proof, but still legal for now.
• Short-term rental: Test the electric van waters without commitment. Useful for seasonal peaks.
• Car sharing/fleet pooling: If your vans sit idle half the day, this could save cash and hassle.
• Bike and cargo e-bikes: For truly urban or last-mile deliveries, sometimes two wheels beat four.

FAQs

Are electric vans really cheaper to run? Absolutely. Electricity is cheaper than diesel, and there’s less to maintain. But don’t forget insurance and the cost of installing charge points.

What government grants can I get? The Plug-in Van Grant knocks up to £2,500 off the price, sometimes more for bigger vans. Business tax breaks are also in play, but act fast—these schemes change more often than British weather.

How far can I really go on a charge? Most new electric vans manage 100–160 miles on a full charge. That’ll do a day’s local work, but if you’re a motorway warrior, keep your eye on the dial.

Will I be able to sell my electric van later? Resale values are holding up, but battery tech moves quickly. Leasing or PCP can reduce the risk if you’re worried about being stuck with yesterday’s tech.

Can I finance used electric vans? Yes, brokers like Kandoo are happy to arrange finance for quality used models. Just check the battery health first—no one wants a van that needs a nap after 40 miles.

Next Steps / Call to Action

Ready to swap fumes for future-proofing? Let Kandoo’s experts walk you through your options, find the right finance deal, and make your business transport as modern as your smartphone. Click below, and let’s get you plugged in.