Van Costs for Couriers UK 2026
Your van is your biggest business asset and your biggest ongoing cost. Getting the finance structure and running costs right from the start can mean the difference between a profitable route and one that leaves you worse off than employment.
Purchase vs Lease vs PCP
Outright purchase (used): £8,000–£20,000 for a reliable used van. Lower ongoing cost but you bear all depreciation risk. Finance lease: £250–£500/month with no large upfront payment — useful for tax (offset against profits). PCP: lower monthly payments but you don't own the van at the end without a balloon payment. For high-mileage courier work, a lease or outright purchase of a 1–3 year-old used van is usually most cost-effective.
Annual Running Cost Breakdown
Road tax (LGV): £310/year. MOT: £55–£100/year. Servicing (oil, filters, brake pads, tyres every 25,000 miles): £800–£1,500/year. Unexpected repairs budget: £500–£1,000/year. Depreciation on a £15,000 van over 3 years: approximately £4,000/year. Total running cost excluding fuel and insurance: £6,000–£8,000/year.
Which Van to Buy in 2026
Ford Transit Custom and Vauxhall Vivaro remain the best all-rounders for parcel delivery. For high volume or freight, the Mercedes Sprinter or VW Crafter offers more capacity. Electric vans (Ford E-Transit, Vauxhall Vivaro-e) are becoming viable for urban routes with good charging infrastructure — running cost savings of £2,000–£4,000/year over diesel.
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