HGV and truck finance keep your wheels turning

What is HGV finance?

HGV finance spreads the cost of a heavy goods vehicle, trailer or specialist body over monthly payments, with the vehicle normally acting as security. It lets hauliers, contractors and operators add capacity without tying up the cash they need for fuel, wages and maintenance.

Trucks are expensive, earn their keep over many years and hold a known resale value, which is why most are bought on finance. The main choices are hire purchase, where you own the vehicle at the end; a finance lease, where you rent it and the lender keeps ownership; and contract hire, where a fixed rental may include maintenance and you hand the truck back at the end.

As a broker, we compare lenders who understand transport. Some are comfortable with older units, high mileages and new operators; others suit large fleet renewals or electric trucks. We look at the vehicle, your O-licence, your contracts and your cash flow, then present the options that make sense.

Need help finding the vehicle too? Our sister company Nexgen Commercials sources new vans and trucks and can arrange ply lining, racking, signwriting and UK-wide delivery. For lighter vehicles, see our commercial vehicle finance and van finance pages.

Key features

What businesses use it for

• Tractor units for general haulage
• Rigid lorries and tippers
• Curtainsider, box and refrigerated trailers
• Specialist bodies, cranes and tail lifts
• Fleet renewals and expansion
• Electric and alternative-fuel trucks

Hire purchase, finance lease and contract hire for HGVs

O-licence, grants and tax: what to know

GOV.UK guidance says you need a goods vehicle operator's licence if your business uses a goods vehicle with a gross plated weight over 3,500kg (or an unladen weight over 1,525kg where there is no plated weight). Lenders funding HGVs will normally ask to see your O-licence, and part of getting one is showing financial standing, so it's worth planning finance and licensing together.

For zero-emission trucks, GOV.UK lists grants applied as a discount at the dealer: currently up to £15,000 or 20% for trucks of 4.25 to 12 tonnes, and up to 40% (capped by weight category, up to £81,000 for trucks over 26 tonnes) for heavier trucks in Great Britain. Grant levels and limits can change.

Lorries and trucks do not count as cars for capital allowances, so GOV.UK confirms they can qualify for the Annual Investment Allowance (£1 million) and some first-year allowances. Companies may be able to claim full expensing on new and unused trucks bought on hire purchase. At Budget 2026 the government announced that the 40% first-year allowance will rise to 50% from 1 January 2027, subject to legislation. Please speak to your accountant before relying on any tax relief.

New operators and owner-drivers

Starting out as an owner-driver or new haulage company is often where a broker helps most. Lenders will usually look at your driving and industry experience, any contract or subcontract work you have lined up, your personal credit history and the deposit you can put down. Newer operators may be asked for a larger deposit or a personal guarantee, and terms may be shorter on older vehicles.

What lenders typically look at

• Vehicle details or supplier quote: make, model, year, mileage and registration
• Goods vehicle operator's licence (or application in progress)
• Business bank statements, typically three to six months
• Latest accounts or tax returns and any management figures
• Evidence of contracts or regular work for the vehicle
• Existing finance and fleet list, so lenders can assess affordability