Fleet Vehicle Depreciation Calculator
See how your fleet vehicles lose value year by year, comparing straight-line and declining balance depreciation for cars, vans, and HGVs.
Enter your vehicle details
Default rates: car 20%, van 18%, rigid 15%, artic 12%
After 5 years
£16,683 book value
Your £45,000 vehicle retains 37.1% of its original cost
| Year | Opening value | Depreciation | Closing value | % remaining |
|---|---|---|---|---|
| 1 | £45,000 | −£8,100 | £36,900 | 82.0% |
| 2 | £36,900 | −£6,642 | £30,258 | 67.2% |
| 3 | £30,258 | −£5,446 | £24,812 | 55.1% |
| 4 | £24,812 | −£4,466 | £20,345 | 45.2% |
| 5 | £20,345 | −£3,662 | £16,683 | 37.1% |
Understanding fleet vehicle depreciation is fundamental to making sound finance decisions. Every commercial vehicle, whether a company car, light van, or 44-tonne artic, begins losing value the moment it enters service. Accurately modelling depreciation helps fleet managers assess the true cost of ownership over an agreement term, set realistic end-of-contract residual values, and choose between hire purchase and finance lease with confidence.
The choice of finance product directly affects who carries the depreciation risk. Under hire purchase (HP), the business owns the vehicle at the end of the term and absorbs any gap between the book value and the actual market price. Under a finance lease, the lender retains legal ownership; at the end of the lease you can arrange a sale and receive a rebate of a proportion of the sale proceeds, effectively transferring residual value risk to the funder. For HGVs and specialist vehicles with volatile residuals, understanding this distinction can significantly affect which product delivers the best cashflow outcome.
UK businesses purchasing commercial vehicles outright or on hire purchase may also be able to benefit from capital allowances. Vans and HGVs may qualify for 100% Annual Investment Allowance (AIA) up to the annual limit, potentially allowing the full cost to be offset against taxable profits in year one. Cars are treated differently, attracting writing down allowances at 18% (main rate pool) or 6% (special rate pool for higher-emission vehicles). Any tax relief available may change the net effective cost of the vehicle materially and should be considered alongside the finance structure. Sorbus Finance is not a tax adviser — please confirm your capital allowance position with a qualified accountant.
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Kacper Materek
Fleet & Mobility Finance Specialist
Fleet, car rental, driving schools, coaches and vehicles
- STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
- STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
- STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
- STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.
Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.
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