With a truck, you are investing in yourself and your business. Make sure that the right one for you is both cost-efficient as well as functional. Below is everything you need to know about truck finance.
How much will truck finance cost? Use the truck loan calculator below to find out how much your repayments will be based on your desired amount and preferred terms. You can also move the sliders to see different outcomes.
Terms from 1 to 10 years. Representative example: 5 year £10,000 loan with comparison rates from 2.8% to 49.9% APR would cost between £10,728 and £27,321, including fees. The interest can vary between £728 and £17,321.
What is truck finance?
Truck financing allows borrowers to spread the costs of buying or leasing a truck. Depending on the type of loan they opt for, borrowers may or may not own the truck after their contract with a lender.
How does truck financing work?
Repayments often depend on various factors, including the type of the truck and its age, your loan terms, interest rate and other fees.
Truck type. You can finance almost all types of trucks in various sizes and load capacities. This includes pick-up trucks, semi-trucks, tractors and trailers, as well as specialist vehicles, like excavators, forklifts, harvesters and the likes. Take note that personal truck loans have different requirements compared to commercial ones.
Terms or contract length. Available terms for a truck loan vary per lender. This will also depend on the type of purchase or leasing agreement.
Deposit. Lenders commonly require a deposit ranging from 10% to 20%. This will be based on the terms and the borrower’s eligibility.
Interest rates. Interest rates and how they will be charged to you depend on the lender. It can be charged through the following:
- APR rate – interest is calculated annually based on the outstanding debt. APR can be fixed or variable. It is usually offered by banks.
- Flat rate – interest is based on the original amount borrowed and it will not change over the course of the loan. Most truck manufacturers charge flat rates for their financing options.
Truck age and depreciation. Lenders may calculate the projected depreciation of the truck and include it in the repayments.
VAT costs – In buying or leasing a truck, you need to pay VAT. This can be paid upfront or monthly, depending on the type of financing.
What truck financing options are available?
There are different options available, based on your business needs and its financial condition.
- Hire Purchase
Hire purchase agreements allow borrowers to buy a truck on an instalment basis with interest, and use it outright. By the end of the loan term, the borrower will need to pay a final fee to transfer the truck ownership to them. In some cases, lenders offer balloon payment options in order to lower monthly payments.
- Contract Purchase
Contract purchase is similar to hire purchase, but borrowers have the option to either pay a final balloon payment to buy the truck or return it to the lender. Repayments for contract purchases cover the depreciation of the truck during the loan term instead of its full cost.
- Finance Lease
In a finance lease agreement, a borrower can use the truck and make monthly repayments for its full cost, plus interest. But the borrower will not have ownership of the vehicle by the end of the term. They will have the option to find a third-party buyer for the truck or continue the agreement with much lower repayments.
- Operating Lease
An operating lease, simply lets a borrower rent a truck for a specific term. The borrower will only pay for the truck’s depreciation based on the terms agreed.
- Contract Hire
Contract hire is similar to an operating lease but with repair and maintenance included in its repayment. This type of finance often has fixed all-inclusive monthly repayments over a term of 2-5 years, making it less risky for businesses.
Truck finance calculator
Repayment Period
12 months
to 60 months
Loan Amounts
£2,000
to £40,000
Carmoola's rates start as low as 6.9% for loans of between £2k - 40k over one to five years. Representative APR: 14.8%. Buy your dream car in minutes with Carmoola's virtual card, with a £0 minimum deposit. Carmoola is an entirely digital, app-based lender. No sales calls or paperwork! Take control and manage your loan in-app.
Borrowing £10,000 over 60 months with a representative APR of 14.8%, an annual interest rate of 14.8% fixed and a deposit of £0.00, the amount payable would be £250 per month, with a total cost of credit of £5,880 and a total amount payable of £13,501 including a one-off Option to Purchase fee of £1. We offer hire purchase loans between £2,000 - £40,000 at a personalised APR between 6.9% and 24.9%
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£1,000
to £25,000
Take control of your car finance with a representative of 7.9% APR
Borrowing £12,000 over 48 months, on a car with a cash price of £12,250 and paying £250 deposit to the dealer. At a Representative APR of 7.9% and an annual interest rate of 7.63% (fixed) you would pay £220.53 monthly with one optional balloon payment of £4154.87 which includes the £1 option to purchase fee. The total amount payable (including your deposit) would be £14,519.78.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View HSBC's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lending Works's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Likely Loans's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lloyds Bank's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Marks & Spencer Bank's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Metro Bank's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View NatWest's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Nationwide's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Post Office Money's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RateSetter's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RBS's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Sainsbury's Bank's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Santander's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Tesco Bank's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View TSB's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Virgin Money's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Zopa's website for more details on their car loans
The rate youre offered may differ from the Representative APR shown and will be based on your personal circumstances, the loan amount and the repayment term. All loans are subject to your financial circumstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.
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EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£2,000
to £40,000
Carmoola's rates start as low as 6.9% for loans of between £2k - 40k over one to five years. Representative APR: 14.8%. Buy your dream car in minutes with Carmoola's virtual card, with a £0 minimum deposit. Carmoola is an entirely digital, app-based lender. No sales calls or paperwork! Take control and manage your loan in-app.
Borrowing £10,000 over 60 months with a representative APR of 14.8%, an annual interest rate of 14.8% fixed and a deposit of £0.00, the amount payable would be £250 per month, with a total cost of credit of £5,880 and a total amount payable of £13,501 including a one-off Option to Purchase fee of £1. We offer hire purchase loans between £2,000 - £40,000 at a personalised APR between 6.9% and 24.9%
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Minimum and maximum loan periods vary between 1 month and 10 years. APR varies between 2.80% and 71.30% p.a. Total interest repayments vary between £435 and £1,019 over the life of the loan. *APR is based on an unsecured loan of R£15,000 for a term of 3 years. WARNING: This APR is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different APR. These rates can change without further notice. All rates quoted are per annum.