Depreciation is often one of the largest costs of owning a van, even though it never appears as a fuel or repair invoice.
Think in pounds lost, not percentages
Start with the total amount paid, then estimate what the van may be worth when the business expects to sell it. The difference is the broad depreciation cost.
Specification can affect resale
Body type, engine, trim, condition, mileage and modifications can all influence used demand. Highly specialised equipment may be valuable to you but not to the next buyer.
Keep vehicles presentable
Maintenance and sensible care can help protect value. A van with poor bodywork, damaged load space and incomplete service history will usually be harder to sell well.
Include depreciation in cost comparisons
A cheaper vehicle that loses value quickly may cost more overall than a dearer alternative. This is why whole-life cost is more useful than purchase price alone.
What depreciation can look like
| Purchase price | Resale after four years | Depreciation |
|---|---|---|
| £24,000 | £10,000 | £14,000 |
| £30,000 | £15,500 | £14,500 |
| £36,000 | £17,000 | £19,000 |
The cheapest vehicle to buy is not automatically the cheapest to own. If a better-specified van retains more value, the gap in true cost may be much smaller than the original purchase-price difference suggests.