Fund your LCVs your way

The right funding for your vans is important. But that doesn’t mean it has to be complex. You’ve got choice to explore – and us to help make the decision easy.

Which LCV funding is right for you?

Business contract hire

Ideal if you know exactly what you need from your vehicles, and want costs and admin sorted.

Van rental

Ideal if you’re happy to pay a bit more for the convenience of a flexible solution.

Bank funding

Ideal if you need quick funds, want to own the LCV, or need flexibility on mileage and wear.

Business contract hire (BCH)

Our most popular leasing product, BCH is the best solution for most businesses looking to spread costs and mitigate risks – unless you expect unusually high levels of wear and tear or are likely to go over mileage allowances.

What's included?

How it works

Lease for your chosen time period and with an agreed maximum annual mileage. Enjoy our customer support for the whole life of your contract. And simply hand back your vehicle at the end.

Pros of BCH

We take on the risk of uncertain residual values
No hassle or separate outlay for maintenance
Monthly payments are 100% tax allowable
Claim back 100% VAT on SMR plan

Cons of BCH

Potential end-of-contract costs – you cover excess mileage and damage beyond ‘reasonable wear and tear’ or over £100, in accordance with BVRLA Fair Wear & Tear Guide.
Early termination charges apply if you want to end your agreement early

What's included?

How it works

Lease for your chosen time period and with an agreed maximum annual mileage. Enjoy our customer support for the whole life of your contract. And simply hand back your vehicle at the end.

Pros of BCH

We take on the risk of uncertain residual values
No hassle or separate outlay for maintenance
Monthly payments are 100% tax allowable
Claim back 100% VAT on SMR plan

Cons of BCH

Potential end-of-contract costs – you cover excess mileage and damage beyond ‘reasonable wear and tear’ or over £100, in accordance with BVRLA Fair Wear & Tear Guide.
Early termination charges apply if you want to end your agreement early

Van rental

If you need the right van with the right conversion, plus complete flexibility on when it’s delivered to you and when you need to give it back, nothing beats rental – even if you do have to pay a little more for the convenience.

What's included?

How it works

Rent a shiny van – less than 18 months old and serviced – with the latest tech for your chosen term (up to 48 months). Then simply hand back your vehicle at the end of the contract.

Pros of rental

Complete flexibility to adapt your fleet to your changing needs
No long-term contracts to tie you down
Switch vehicle mid-term, no penalties
Extend rental period, quickly and easily

Cons of rental

Monthly costs are often more expensive than other options
Excess mileage charges at end of contract

What's included?

How it works

Rent a shiny van – less than 18 months old and serviced – with the latest tech for your chosen term (up to 48 months). Then simply hand back your vehicle at the end of the contract.

Pros of rental

Complete flexibility to adapt your fleet to your changing needs
No long-term contracts to tie you down
Switch vehicle mid-term, no penalties
Extend rental period, quickly and easily

Cons of rental

Monthly costs are often more expensive than other options
Excess mileage charges at end of contract

Bank funding

A smart alternative provided by Volkswagen Bank, where you can loan the full invoice value of any Volkswagen Group LCV or eLCV – without worrying about mileage allowances or wear and tear fees.

What's included?

How it works

The business owns the vehicle from day one – it applies for funding from Volkswagen Bank for the van’s invoice value inc VAT.

The business repays a fixed monthly amount inc interest over a chosen time period. At the end, the business makes a balloon payment, then either 1) sells on the vehicle, potentially making a profit, or 2) keeps the vehicle.

Pros of BCH

Quick access to funds – when credit is approved for your first LCV, 80% of the paperwork is sorted. So after that, you’ll have fast access to funds for future LCVs.
No deposit or payments for the employee
No end-of-contract excess mileage or damage charges – ideal for commercial heavy-usage
Access attractive rates
Tax relief TBC
Monthly payments are 100% tax allowable
Claim back 100% VAT
You’re in good hands with Volkswagen Bank’s 60 years of experience

Cons of BCH

Bank loans are subject to interest and changes in interest rates
Your business takes on the risk of unpredictable residual values
No tax or NI benefits for the employee or the business

What's included?

How it works

The business owns the vehicle from day one – it applies for funding from Volkswagen Bank for the van’s invoice value inc VAT.

Pros of BCH

Quick access to funds – when credit is approved for your first LCV, 80% of the paperwork is sorted. So after that, you’ll have fast access to funds for future LCVs.
No deposit or payments for the employee
No end-of-contract excess mileage or damage charges – ideal for commercial heavy-usage
Access attractive rates
Tax relief TBC
Monthly payments are 100% tax allowable
Claim back 100% VAT
You’re in good hands with Volkswagen Bank’s 60 years of experience

Cons of BCH

Bank loans are subject to interest and changes in interest rates
Your business takes on the risk of unpredictable residual values
No tax or NI benefits for the employee or the business

Topline on LCV tax relief for business leasing

Monthly payments and SMR are tax allowable against pre-tax profits

Reclaim 100% of VAT (50% if part-business use)

Reclaim 100% of SMR VAT (service, maintenance, repairs)

Going electric? There’s a grant for that.

We’ll help you uncover plug-in and electric van grants and loans for business, as well as a government innovation fund. Plus, charging point solutions and incentives.

Electric van grants (up to £5,000 discount)

The seller will include the discount in the purchase price. Grants are capped based on the gross vehicle weight. Vans must meet the following criteria:

Listed with the HMRC scheme
Emit less than 50g/km CO₂
Offer an electric range of at least 60 miles

Small vans

Under 2,500kg Gross Vehicle Weight (GVW)
CO₂ emissions less than 50g/km
Emission-free range of at least 96km (60 miles)
Up to 35% discount on the purchase price, or up to £2,500. Apply for up to 1,500 eLCV grants each year – limit resets 1 April every year

Large vans

2,500kg – 4,250kg Gross Vehicle Weight (GVW)
CO₂  emissions less than 50g/km
Emission-free range of at least 96km (60 miles)
Up to 35% discount on the purchase price, or up to £5,000. Apply for up to 1,500 eLCV van grants each year – limit resets 1 April every year

Workplace Charging Scheme

The Workplace Charging Scheme offers vouchers to give your business up to £350 off the purchase and installation cost of each charge point, up to a total of 40 sockets.

The scheme covers up to 75% of the total costs of the purchase and installation of EV chargepoints (including VAT), capped at a maximum of:

£350 per socket
40 sockets across all sites per applicant – for instance, if you want to install them at 40 sites, you will have 1 socket available per site

It is open to eligible:

businesses
charities
public sector organisations
small accommodation businesses

EV Chargepoint Grant

The EV Chargepoint Grant for Renters and Flat Owners funds 75% of your employee’s costs of buying and installing an EV charge point, or up to £350 (inc VAT).

Employees must meet all criteria:

Own, lease or have placed an order for, a qualifying vehicle
Have dedicated off-street parking at the property
Provide landlord contact details if renting
Choose a qualifying installer (who applies for the grant)

Introducing our EV infrastructure loans

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Telematics technology

24/7 driver support

Rentals built into your lease

Maintenance scheduling

Driver training

Up the savings with less LCV downtime

Downtime is money. Especially for business-critical LCV fleets that are always on the move. So, keep your fleet and your business moving with uptime management that focuses on forward-thinking prevention – and rapid downtime response.

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