# Do I need a deposit to finance a work van as a tradie?
> Sometimes yes, sometimes no. Established trade businesses can often finance 100% of a work van, while newer businesses or sole traders usually need 10–20% down.
Source: https://tradiefinance.co.nz/help/do-i-need-deposit-for-work-van
Published: 2026-04-01T08:00:00.000Z
Category: asset-finance
Tags: faq, deposit, asset-finance, work-vehicle
Image: https://tradiefinance.co.nz/images/resources/generated/tradie/faq/do-i-need-deposit-for-work-van-primary.jpg
Image alt: Work vehicles on a New Zealand build site for Do I need a deposit to finance a work van as a tradie?
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## The short answer
Not always. Plenty of established trade businesses finance a work van with zero deposit. Whether you'll need one comes down to three things:
1. **How long the business has been trading.** 12+ months with clean financials usually unlocks 100% finance options.
2. **The vehicle.** A two-year-old, common-make work van is far easier to fund without a deposit than a ten-year-old or unusual one.
3. **Your GST position.** If you're GST-registered, you claim the GST back on the purchase, which behaves like an automatic deposit for your cashflow.
A deposit isn't a lender being difficult — it's how they bring the loan in line with what the vehicle is actually worth as security. Newer, in-demand vans hold value, so they need less of one.
## The typical patterns
In our experience, applications tend to fall into a few clear buckets:
| Your situation | Typical deposit |
|---|---|
| Established company, 12+ months, GST-registered, common newer vehicle | Often nil — and some lenders fund on-road costs and accessories on top |
| Established [sole trader](/blog/sole-trader-vs-company-for-tradies), 12+ months trading | Usually around 10%, sometimes nil for strong profiles |
| Newer business (under 12 months) or no financials yet | Typically 15–20%, often via [hire purchase](/glossary/hire-purchase) rather than a chattel mortgage |
| Older or unusual vehicle (10+ years, high mileage) | 10–30% even for established businesses, because the security value is lower |
These are patterns, not promises. We place your application with the lender whose appetite fits your profile, so the actual number can land better than the table suggests.
## The deposit maths, with GST
Here's the part most tradies miss. If you're GST-registered, the GST you claim back offsets a chunk of what you'd otherwise put in.
On a $40,000 GST-inclusive van, the GST portion is worked out using the **3/23 rule** — $40,000 × 3 ÷ 23 = roughly **$5,217** back at your next GST return. So the real cash position over a settlement-plus-one-return cycle looks like this (illustrative only):
| Scenario | Cash out at settlement | GST back next return | Net 'deposit' |
|---|---|---|---|
| 100% finance | $0 | $5,217 back | -$5,217 (net cash positive) |
| 10% deposit | $4,000 | $5,217 back | -$1,217 (net cash positive) |
| 20% deposit | $8,000 | $5,217 back | $2,783 |
For most established businesses, the lowest-deposit option is usually the smart one — the GST claim-back does the job of a deposit on its own, and your cash stays in the business where it can earn its keep.
The GST claim-back and depreciation are not the same thing. The GST refund is a one-off through your GST return; depreciation is a separate, ongoing tax deduction handled at year-end and is independent of how the loan is structured. Timing and thresholds shift, so confirm both with your accountant or IRD before you bank on the numbers.
For a newer business with no GST claim-back or no financials yet, putting some genuine skin in the game often unlocks sharper rates and more lender choice — so a deposit can pay for itself.
## What lenders count as a deposit
A deposit doesn't have to be cash in hand. Lenders will usually accept:
- Cash from the business or shareholder funds.
- Trade-in equity from a vehicle you're swapping out.
- An un-financed vehicle you sell separately and put toward the purchase.
What they **won't** count is a second loan taken out to cover the deposit. Lenders look at your total commitments holistically, so borrowing the deposit just shows up as more debt — it doesn't strengthen the application.
## So, what's right for you?
The best deposit for your situation depends on your accountant's view of the GST and depreciation cycle and how your cashflow is tracking. Because this is genuine business-purpose finance, it also sits largely outside the consumer CCCFA rules — which is part of why decisions can move quickly.
We're a finance broker, not a lender, so we're not pushing one product. We line up your application with the right lenders and aim for the lowest deposit your profile will carry.
Have a quick chat before you sign anything — [book a call](/book-a-call) or head to our [help centre](/help) and we'll talk it through. You can also dig deeper in our [work vehicle finance guide](/guides/work-vehicle-finance-guide) or see [how much a tradie can borrow](/blog/how-much-can-a-tradie-borrow).