The hidden cost of buying your first new van: depreciation

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Published: 25 Mar 2026 | Last reviewed: 25 Mar 2026 | Reviewed by: VanCompare Editorial Team

Buying your first new van is exciting — but the biggest cost often isn’t fuel or servicing. It’s depreciation: the gap between what you pay now and what the van is worth when you sell or trade it in.

Depreciation isn’t something you “avoid”. It’s something you plan for so it doesn’t wreck your cashflow later.

Start with the basics: what do you actually need the van to do?

Before you look at finance deals, get clear on the job:

• How many people need seats?
• Typical journeys (short urban runs vs long motorway miles)
• Height limits (car parks, sites, depots)
• Connectivity and driver aids (phone integration, parking sensors/camera)
• Payload and load volume (and whether you’ll add racking, lining or a conversion)

These decisions affect running costs and resale value, because buyers pay more for vans that match common real-world use.

What depreciation is (and what really drives it)

Depreciation is the reduction in your van’s value over time. It’s influenced by:

• Age and mileage (the big two)
• Condition (bodywork, interior, load bay wear, service history)
• Spec and desirability (wheelbase/roof, trim, safety tech, colour)
• Market forces (new van prices, used supply, demand, and what’s coming off lease)

The key point: depreciation isn’t a straight line. It changes with the market.

What residual values look like right now

Recent market commentary shows why relying on “old rules” can be risky.

• A What Van analysis quoting cap hpi said used van prices fell 25.1% in 2024, with sharper drops from mid-year. The same piece quoted Glass’s saying used auction prices fell by around 20% on average over 2024, while still sitting over 15% above 2019 levels.
• BVRLA’s January 2026 Leasing Outlook reports that residual values of petrol and diesel cars and vans coming off lease “remain strong”, but also highlights material uncertainty and disposal losses around electric vehicles (with used prices stabilising in the second half of 2025).

Practical takeaway: if you’re banking on a resale value to clear finance or fund your next van, build in a safety margin.

A simple “total cost of ownership” approach (TCO)

Don’t compare vans only on monthly payments. Compare them on TCO:

TCO = (Purchase price – expected resale value) + finance costs + running costs

Running costs usually include:

• Fuel/Energy
• Servicing and tyres
• Repairs outside warranty
• Downtime risk (especially if you can’t work without the van)

Depreciation is typically the biggest single line item for newer vehicles — so estimate resale value conservatively.

Buy new, buy used, or lease?

There’s no single right answer — it depends on how predictable you need your costs to be.

Buying new

• Best when: you’ll keep it longer, you want control, and you can absorb residual value swings.
• Watch for: higher early depreciation and market volatility.

Buying used (nearly-new or 2–5 years old)

• Best when: you want to avoid the steepest early depreciation.
• Watch for: condition, hidden wear, and whether the van’s spec still suits your routes and clean-air requirements.

Leasing

• Best when: you want predictable costs and prefer the funder to carry more residual value risk (but check mileage and damage terms).
• BVRLA’s Leasing Outlook notes residual value uncertainty (particularly around EVs) as one reason some operators lean towards leasing rather than buying.

How to protect resale value in the real world

• Spec for resale: common sizes, practical trims, and driver aids buyers actually want.
• Keep it straight: fix minor damage early (chips, mirrors, door dents, windscreen).
• Service on time, keep records: a clean history helps resale and trade-in.
• Avoid accidental “hard use” signals: overloaded vans and battered load bays price you down fast.
• Think ahead on compliance: if your work is in ULEZ/CAZ areas, the van’s Euro standard and future restrictions can affect demand.

Quick tax note (don’t skip it)

Depreciation is a commercial cost; tax relief is a separate subject. If you’re buying a van for business, you may be able to claim capital allowances (for example via the Annual Investment Allowance or other plant and machinery reliefs) depending on circumstances. Use HMRC guidance to check what applies to you.

Sources

1. What Van — Used van values commentary (cap hpi / Glass’s; 2024 declines)
2. BVRLA Leasing Outlook report (Jan 2026) — residual value context and EV uncertainty
3. GOV.UK — Capital allowances overview
4. HMRC Helpsheet HS252 (capital allowances basics)

VanCompare Editorial Team

The VanCompare Editorial Team produces clear, practical guidance on UK van insurance and related topics. We work with FCA authorised insurance providers and use insurer information where relevant to explain cover in plain English and help drivers make informed decisions.

• Where relevant, our content is checked against publicly available UK guidance and information from sources such as the FCA and GOV.UK to help keep it accurate and up to date.
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