The yearly cost to run a new van in the UK varies hugely, but for many small businesses a realistic ballpark is £5,000–£15,000+ per year once you include fuel/energy, insurance, servicing, tyres and depreciation/finance. The biggest swing factors are miles driven, diesel vs electric, and whether you’re paying cash or on a lease.
What makes up the annual running cost?
Fuel or electricity is usually number one. A diesel van doing 15,000 miles a year can easily spend several thousand pounds on fuel depending on mpg and pump prices. An electric van can be cheaper per mile, especially if you can charge at your premises on a good tariff, but public rapid charging can narrow the gap.
Finance or depreciation is often the other big cost. A new van on a lease might be a fixed monthly figure; buying outright means you still “pay” depreciation over time. This is why two identical vans can cost very different amounts to run depending on how they’re funded and how long you keep them.
Insurance depends on driver age, postcode, claims history, vehicle value and use (courier work is typically pricier). Budget for anything from hundreds to a few thousand per year.
Servicing, tyres and repairs: new vans are more predictable, but tyres, brakes and consumables still add up—especially with high mileage or heavy loads.
UK-specific costs people forget
VED (road tax) for vans is a flat rate: £345 per year (as per current rules). MOT starts at year 3. If you drive into ULEZ/Clean Air Zones, check compliance—most new Euro 6 diesels avoid charges, but rules vary by city.
Two quick checks before you decide
1) Work out your cost per mile (fuel/energy + tyres/servicing) and multiply by your annual mileage. 2) Add your fixed costs (insurance, VED, finance, breakdown cover). If you’re considering electric, also check whether you qualify for the Plug-in Van Grant (currently up to £2,500 or £5,000 depending on GVW), as OZEV support can change—confirm on Gov.uk.