HGV and lorry finance
HGV finance spreads the cost of heavy goods vehicles, articulated lorries, tippers and refrigerated trucks over their working life. Because the tickets are larger and the underwriting more involved than van finance, specialist commercial vehicle lenders and manufacturer finance arms dominate the market. The usual routes are hire purchase, where the haulier owns the unit at the end, and finance lease, where the vehicle is used and accounted for over a long term. The truck itself is the lender security, and HGVs hold value reasonably well over typical finance terms, which makes the deal underwriteable for established operators. Lenders weigh the operator licence, trading history and the strength of the haulage contracts behind the vehicle. For owner-drivers and growing fleets, asset finance is usually the only realistic way to put a £100,000-plus unit on the road without tying up working capital, and it keeps the rest of the credit facility free for fuel, wages and maintenance.
At a glance
- Category
- Vehicles
- Typical tickets
- £40,000 to £200,000
- Typical term
- 36 to 84 months
- Best finance type
- Hire purchase or finance lease depending on intent to keep.
How financing hgv works
The lender funds the vehicle and you repay over a fixed term with a deposit up front. On hire purchase ownership transfers at the end for a nominal fee; on finance lease the unit stays a leased asset for most of its life. Underwriting looks closely at the O-licence, the age and mileage of the vehicle and the contracts it will run. Used HGVs attract lower loan-to-value because their valuation ages faster, so expect a larger deposit on an older unit.
Typical terms
Terms commonly run 36 to 84 months to match the long working life of a truck. Deposits are typically larger than on vans, especially on used units. Maintenance, tyres and downtime are material costs over the term and should be budgeted alongside the finance payment.
Who it suits
Established hauliers, logistics operators and owner-driver subcontractors with a valid operator licence and a contract pipeline. It suits construction tipper and mixer operators, refrigerated transport and general distribution. First-year operators face a higher bar and usually need a strong deposit and evidence of secured work.
What to check
- Operator licence (O-licence) status, which directly affects underwriting.
- Maintenance and downtime costs across the term, which are significant on heavy units.
- Used HGV valuations, which age fast and drive the lender loan-to-value.
- Whether the vehicle specification matches the contracts it will run, to protect resale value.
Why asset finance fits
HGVs hold value well over typical finance terms. Asset-back security plus operator licence make the deal underwriteable for established hauliers.
New to the structures? The guide to hire purchase, finance lease, operating lease and refinance explains how each route is taxed and accounted for, and the asset finance cost compare calculator puts them side by side on the same asset.
Top sectors
- Logistics and haulage
- Construction (tipper, mixer)
- Refrigerated transport
- Owner-driver subcontractors
Top UK lenders
- Specialist HGV asset finance lenders
- Aldermore
- Hitachi Capital (MUFG)
- Manufacturer finance arms (DAF Financial Services, Volvo Financial)
Watch outs
- Operator licence (O-licence) status affects underwriting.
- Maintenance costs over the term are material; budget alongside the finance cost.
- Used HGV valuations age fast; lender LTVs reflect that.
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Open hgv and lorry finance eligibility checker →Last reviewed: 2026-04-26.