Double or Nothing: The Real Cost of a Second Van for Growing Trades

You’ve been turning down jobs. The van is out on one site while a customer waits. You’ve borrowed a mate’s Transit, paid for hire vans, or done the school run in a liveried panel van. The question is no longer whether you need a second van, but whether you can justify one. Here’s how to run the numbers without letting enthusiasm write cheques your cash flow can’t cash.

The utilisation test: when one van is genuinely full

Start with a simple measure: how many days a month is your current van working? If it’s sitting idle more than a handful of days, a second van is a luxury. But if you’re regularly hiring, borrowing, or turning work away because the van is double-booked, you’re already paying for a second vehicle — just in less efficient ways.

A useful threshold: if you’re spending more than £800 a month on hire vans, taxis for parts, or lost jobs, the maths starts to tilt. That’s roughly the cost of a modest used van on finance, before insurance and parking. But don’t just look at spend — look at pattern. Is it two or three days a week, every week? Or a seasonal blip? A second van needs to earn its keep for at least 60% of the working month to justify the fixed costs.

The costs that don’t appear on the forecourt

The purchase price is the easy bit. The second van brings a second set of everything: insurance (often higher because you lose no-claims bonus on the new policy), road tax, MOT, servicing, tyres, and the dreaded parking permit. In many UK towns, a second commercial vehicle permit can cost £200–£500 a year, and some councils restrict the number of permits per household or business.

Then there’s security. A second van parked on a driveway or street is another target. You’ll want deadlocks, a tracking device, and maybe a lockable gate. Factor in £300–£600 for decent security before you’ve turned a wheel.

And don’t forget the admin: another insurer to chase, another MOT to diary, another set of keys to lose.

Finance routes: lease, HP, or a sensible used buy

If you’re adding a second van, leasing can be attractive because it bundles servicing and road tax, and you can offset the monthly cost against tax. But leases come with mileage caps and damage charges that can sting. Hire purchase (HP) spreads the cost and you own the van at the end, which suits trades who keep vehicles for years. Used buying — especially an ex-fleet van with a full service history — keeps capital outlay low, but you’ll need a contingency fund for repairs.

In 2026, used van prices have settled compared to the post-pandemic spike, but late-plate low-mileage examples still hold strong money. A three-to-five-year-old panel van from a reputable dealer is often the sweet spot for a second vehicle: depreciation has done its worst, but there’s plenty of life left.

The idle risk: when a second van becomes a money pit

The biggest danger is optimism. You imagine the second van will be out every day, but in reality your workload might not double overnight. If the new van sits idle two days a week, it’s still costing you insurance, tax, and depreciation. That’s dead money.

One way to mitigate: start with a used van on a short-term lease or a hire purchase with a low deposit, so you’re not locked in for years. Or consider a van-sharing arrangement with another trader — though that brings its own insurance and liability headaches.

Another option: keep the second van as a ‘spare’ that only gets used when the diary is full, but that’s hard to justify financially unless you’re turning away significant work.

Parking, permits, and the neighbours

Before you buy, check your parking situation. If you’re on a terraced street with restricted permits, a second van might mean paying for a private parking space or risking a ticket. Some councils require proof of off-street parking for a second commercial vehicle permit. A quick call to the local authority saves nasty surprises.

Also think about your neighbours. Two vans outside a house can raise eyebrows, especially if one is liveried and parked overnight. Be considerate, and check any covenants or landlord restrictions if you rent your yard.

A simple decision framework

To decide, ask yourself:

• Am I turning down paid work at least twice a month because of van availability?
• Am I spending more than £600 a month on hire, borrowing, or lost jobs?
• Can I cover the second van’s fixed costs (insurance, tax, parking, finance) for at least six months without stressing cash flow?
• Do I have a plan for the van’s idle time — extra jobs, a second driver, or a subcontractor?

If you answer yes to the first two and can cover the costs, a second van is likely to pay its way. If not, consider a more flexible hire arrangement or partnering with another trader.

The bottom line

A second van is a tool, not a trophy. It should earn more than it costs, and that means honest maths, not wishful thinking. Run the numbers, check the parking, and start small if you can. Your cash flow will thank you.