Pickups sit between cars and vans. They’re financed like vans when bought for work and like cars when bought privately, and since April 2025 double cab pickups are taxed differently for businesses. This guide explains which finance types are available and what changes depending on how you’ll use the pickup.
In short
Most pickups are financed with hire purchase (HP), lease purchase or leasing. Some manufacturers offer PCP on pickups to personal buyers. If you’re buying through a business, check the tax position first: from April 2025, most double cab pickups are treated as cars, not vans, for company car tax and capital allowances.
How pickup finance works
The finance products are the same as for cars and vans. What changes is who you are and how you’ll use the pickup:
- Personal buyers can usually choose HP, PCP where it’s offered, or personal contract hire.
- Sole traders and limited companies are more likely to use HP, lease purchase or business leasing, as with vans.
The main types of pickup finance
| Type | How it works | Do you own it? | Usually for |
|---|---|---|---|
| Hire purchase (HP) | Deposit, then fixed payments covering the full price | Yes, after the last payment | Businesses and personal buyers |
| Lease purchase | Lower payments with a compulsory final payment | Yes, after the final payment | Mainly businesses |
| PCP | Lower payments with an optional, guaranteed final payment | Only if you pay the final payment | Personal buyers, where offered |
| Leasing (contract hire) | Fixed rentals, then hand it back | No | Businesses and personal buyers |
Business or personal use
As with vans, agreements with limited companies, and some business agreements over £25,000, aren’t regulated by the Consumer Credit Act. Personal and sole trader agreements usually are. See business or personal: why it matters for how this affects your rights.
Tax changes for double cab pickups
For many years, double cab pickups with a payload of one tonne or more were treated as vans for tax. That changed in 2025:
- Company car tax (benefit in kind): from 6 April 2025, double cabs with a payload of one tonne or more are treated as cars, not vans. Pickups bought, leased or ordered before that date can keep van treatment until they’re disposed of, the lease ends or 5 April 2029, whichever is first.
- Capital allowances: for spending from 1 April 2025 (Corporation Tax) or 6 April 2025 (Income Tax), most double cabs are treated as cars.
- VAT: unchanged. A double cab with a payload of one tonne or more is still not treated as a car for VAT, so a VAT-registered business can usually reclaim VAT as it would on a van.
Source: ICAS. Single cab pickups are generally still treated as vans. Tax rules are complex, so check with your accountant before buying a pickup through a business.
What lenders check
Lenders run the usual credit and affordability checks. For a business pickup, they may also ask for accounts, tax calculations or business bank statements, and how long you’ve been trading. Pickups are expensive vehicles, so a deposit can make a real difference to approval and total cost. If your credit history isn’t perfect, the guidance in bad credit van finance applies to pickups too.
Pickup finance FAQs
Can I get PCP on a pickup?
Sometimes. Some manufacturers offer PCP on pickups to personal buyers, but it’s less common than for cars, and rarely offered to businesses. Lease purchase is the usual alternative.
Is a pickup a car or a van for finance?
For the finance itself, it doesn’t matter much: lenders offer the same products. The distinction matters for tax. For businesses, most double cabs are now treated as cars for company car tax and capital allowances, but still as vans for VAT.
Can I reclaim VAT on a pickup?
A VAT-registered business can usually reclaim VAT on a pickup with a payload of one tonne or more that’s used for business, as it would on a van. Private use may reduce the reclaim. Check with your accountant.
Is there a mileage limit on pickup finance?
Not on HP or lease purchase. PCP and contract hire set an annual mileage limit, with charges for going over.