How much do vans depreciate over time?
When looking to secure a new van, it’s important to look at the overall cost and if it makes financial sense for your business. With this in mind, you’ll also need to consider how much it could depreciate.
Van leasing deals can be a great way to avoid depreciation costs while still securing a brand-new van. Leasing means you don’t need to worry about how much value a van will lose, as you are not paying towards ownership. Despite this, you may still ask why vans depreciate at all? Let’s look at some of the most commonly asked questions regarding van depreciation.
What is van depreciation?
By definition, van depreciation refers to a decrease in a van’s value over time. An exact figure can be calculated by looking at the amount paid towards ownership and what it’s worth at the point of resale. The difference between these two figures is called a van’s depreciation rate.
What is the average van depreciation rate?
On average, a new van can lose 30-40% of its value in the first 3-4 years, but this will vary depending on the van lease type. Van depreciation can be one of the biggest financial implications to consider, with van owners paying more towards this than any other running cost.
What Affects a Van’s Rate of Depreciation?
A van’s depreciation rate will vary depending on a number of factors. These can include:
- Make and model
- Mileage
- Condition
- Service history
- Trim level – equipment, optional extras
If your van covers fewer miles and is maintained well, it may retain more of its residual value. Equally, a van’s depreciation rate can increase if it covers higher miles and has a larger amount of wear-and-tear. Ultimately, a van’s depreciation rate will be subjective and vary between vehicles.
Do Electric Vans hold their value?
Electric vans should hold their residual value well. They are quickly becoming a popular alternative for UK businesses, with tax benefits and an extensive charger network making the move to electric more appealing. However, they are still a relatively new option in a competitive market and several factors will determine their residual value.
What contributes towards electric van depreciation?
The lifespan of an electric van’s battery will be the most significant contributor to van depreciation. For peace of mind, most van manufacturers will include a warranty specific to the electric battery. Once this warranty runs out, however, and the electric battery starts to depreciate, the price of a replacement battery can impact an electric vans resale value.
How quickly do electric vans depreciate compared to petrol and diesel vans?
Electric vans are consistently better at holding their value compared with petrol and diesel alternatives. For example, an internal combustion engine van could lose as much as 60% of its value in the first 3-4 years.
Top electric vans that hold their value
Ford E-Transit
The Ford E-Transit is the all-electric version of this iconic commercial vehicle and a go-to for businesses who want to make the move to electric. It has an impressive 196-mile range, selectable driver modes, and a versatile load space. Ford is a popular and trusted commercial brand, with the standard Ford Transit existing as the best-selling van on UK roads. As a result, the all-electric variant should hold its value well.
VW ID.Buzz
The VW ID.Buzz Cargo is a bold and retro commercial offering with possibly the longest electric van range on the market. It has an official WLTP range of 256 miles and is a great choice for businesses who want to take an eco-conscious approach and benefit from VW’s long-running brand reputation. This alone should help limit any van depreciation.
Vauxhall Vivaro
The latest generation Vauxhall Vivaro is a modern and affordable medium van. It’s become a staple fleet vehicle for businesses worldwide, and there’s good reason for this. The all-electric version has one of the best ranges on the market, achieving a claimed 205 miles of range on WLTP tests. It has a maximum payload of 1458kg and utilises a familiar platform that’s shared with competitors. Because of this, it should hold its value and remain highly desirable come resale.
