Van depreciation explained (UK)
Published 23 October 2026 · Last updated 23 October 2026 · by Value My Van
Depreciation is the loss in value a van experiences over time. Understanding how it works helps you make smarter buying and selling decisions, and minimise losses.
What is depreciation?
Depreciation is the difference between what you paid for a van and what it's worth when you sell it. It's your single biggest cost of ownership—typically far more than fuel, insurance, or servicing over the van's life.
Vans depreciate because:
- Age: Older vehicles are worth less
- Mileage: Higher mileage reduces value
- Wear and tear: Condition deteriorates over time
- Technology: Newer models have better features, safety, and emissions
- Supply and demand: Popular models hold value better
How fast do vans depreciate?
Vans lose value fastest in the first 3 years. After that, depreciation slows. Our data (compiled from manufacturer list prices, SMMT data, Cap HPI reports, and industry sources) shows typical retention rates:
| Segment | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| Small vans | 44–65% | 30–44% | 23–34% | 16–23% |
| Medium vans | 47–68% | 32–46% | 25–35% | 17–24% |
| Large vans | 50–77% | 30–46% | 20–31% | 11–16% |
| Pickups | 53–81% | 36–55% | 28–42% | 19–29% |
| Electric vans | 42–61% | 26–48% | 18–33% | 12–22% |
Figures are % of original list price (ex VAT), at 20,000 miles/year, average condition, trade value. Source: our dataset, compiled from manufacturer list prices, SMMT data, Cap HPI reports, Parkers, and industry publications. See methodology.
Why the first 3 years matter most
A medium van (e.g. Ford Transit Custom) bought new for £30,000 ex VAT typically loses:
- Year 1: £10,800–£15,900 (36–53% loss)
- Year 2: £4,200–£5,400 (14–18% additional loss)
- Year 3: £2,400–£3,600 (8–12% additional loss)
- Year 4–5: Depreciation slows to ~£1,500–£2,100/year
- Year 6–10: Further slowing to ~£600–£900/year
This is why buying nearly-new (1–2 years old) can save you thousands. Someone else has taken the steepest depreciation hit.
What drives van depreciation?
1. Age
Older vans are worth less, but the relationship isn't linear. The first year's loss is the biggest, then depreciation slows. After 10 years, vans approach a "floor" value based on utility (a working van is still worth something even if it's old).
2. Mileage
Commercial vans average 20,000 miles per year (SMMT and industry data). Lower mileage for the age increases value; higher mileage reduces it. Our model applies a 0.4% adjustment per 1,000 miles under/over average (capped at ±12%/30%).
Example: A 3-year-old van with 60,000 miles (average) vs 40,000 miles (20k under):
- 60,000 miles: £10,000 trade value
- 40,000 miles: £10,800 trade value (+8% premium)
3. Make and model
Popular, reliable models from Ford, Volkswagen, and Mercedes-Benz hold value better than less-known brands. Our data shows:
- VW Transporter: +15% residual premium (strong brand, desirable for camper conversions)
- Ford Transit / Transit Custom: Near baseline (huge supply, reliable, but common)
- Fiat Ducato: -12% residual penalty (oversupply, some reliability concerns)
4. Condition and service history
Full service history (stamped book or invoices) adds 10–20% to value. Excellent condition (no damage, clean load area) adds 8%. Poor condition (significant damage, warning lights, mechanical faults) reduces value by 25%.
5. Market demand
Demand fluctuates with economic conditions, business confidence, and policy changes:
- 2021–2022: Used van values spiked 20–30% due to new van supply shortages (semiconductor shortage, pandemic)
- 2023–2024: Values normalised as supply recovered
- 2025–2026: Double-cab pickup values fell after BIK tax change (taxed as cars from 6 April 2025, per HMRC)
6. Size and segment
Large vans (Sprinter, Crafter) depreciate faster in percentage terms than medium vans (Transit Custom, Transporter) because:
- Higher list prices (£40k–£50k new)
- More specialised (fewer buyers)
- Higher running costs deter private buyers
7. Fuel type
Electric vans are a mixed picture. Some evidence (Cap HPI, Loads of Vans 2024 report) suggests stronger retention (52% at 3 years vs 43% diesel). Other data (TrainAR, usedcarstats) shows steeper early losses (~35% at 3 years for E-Transit). Buyer concerns: battery degradation, charging infrastructure, limited range. Our curve uses a wide band (26–48% at 3 years) to reflect this uncertainty.
How to minimise depreciation
Buy nearly-new
Let someone else take the first-year hit. A 1–2 year old van with 20k–40k miles costs 30–40% less than new but has most of its useful life ahead.
Buy popular models
Ford Transit, VW Transporter, Mercedes Sprinter: high demand when you sell. Avoid obscure models with thin markets.
Keep mileage reasonable
If you can keep mileage below 15,000/year (vs average 20,000), you'll get 4–8% more when selling.
Maintain full service history
Every service stamp adds value. Keep all invoices for tyres, brakes, MOT, repairs. Buyers pay a premium for documented maintenance.
Sell at the right time
Best: Spring (March–May) when businesses expand and demand is high. Worst: December–January (slow season). See: Best time to sell a van.
Keep it clean and tidy
A well-presented van sells faster and for more. Clean the load area, fix minor damage (cracked lights, dents), get an MOT before selling.
Leasing vs buying
If depreciation worries you, consider leasing (contract hire). You pay a fixed monthly cost and return the van at the end—no depreciation risk. But you never own the van, and mileage is capped. See: Should I buy or lease a van?
Calculate your van's depreciation
Use our depreciation calculator to project how much your van will lose over the next 1–10 years.
Sources: SMMT commercial vehicle data, Cap HPI residual value reports, manufacturer list prices (Ford, VW, Mercedes, Vauxhall, Citroën, Peugeot, Fiat), ONS new-vehicle CPI (D7E8), Parkers, TrainAR/usedcarstats, Loads of Vans 2024 report, HMRC double-cab pickup BIK guidance. Published 23 October 2026 by Value My Van.