Motorhome finance is an important consideration when purchasing a motorhome. Whether you are a first-time buyer or an experienced motorhome owner, it is important to understand the different financing options available to you.
Motorhome loans are one of the most popular methods of financing a motorhome purchase; they provide flexibility and competitive interest rates and mean you don't have to stump up a lot of money upfront.
While owning a motorhome is quite uncommon due to the increased ease of travelling abroad by air, it's worth knowing that you can purchase one using a finance plan rather than all in one go.
Do you have a car on finance and would like to reduce your monthly repayments? Sign up with Car Credible today; we could help you save money on your deal.
It's possible to buy both a new and used motorhome with finance, so if you're looking to restore an old VW camper van or buy a brand new Adria MB Coral Supreme, there are various options available to all.
In this article, we will look at the finance options that could be of interest to you, as well as what happens if you have bad credit, no deposit or wish to price up your finance or get a free, no-obligation quote.
Motorhome finance options
Motorhomes are great for those who want to travel and explore the UK and beyond without having to stay at hotels or pay for restaurant food. It may be an expense, but over time it could save you money.
Also known as recreational vehicles (RVs), motorhomes give you the freedom and flexibility to go where you like, when you like, and no matter what time of year it is, you can be certain you'll always have a great time in your RV.
However, they are expensive, so when buying a motorhome, you should consider financing it to help ease the costs and help you manage the payments in more manageable monthly chunks.
There are two main finance types available to purchase a motorhome. These are Personal Contract Purchase (PCP) and Hire Purchase (HP). They are the two most common ways to finance a car too, so if you have a vehicle on finance or have previously done so, you would likely have had one of these two finance plans.
Personal Contract Purchase (PCP)
A PCP finance agreement gives you flexibility during and at the end of your deal. With a PCP, you will have an optional final balloon payment at the end of your term. It means you will pay the balloon payment to own the RV outright, use any positive equity to get into a new finance deal or hand it back to the finance company without paying anything more.
Hire Purchase (HP)
An HP finance agreement is similar in that you make fixed monthly repayments, but rather than paying a final balloon payment, handing it back or taking out a new loan, you will own the RV outright.
As there will be no final balloon payment, you will likely pay more in repayments on an HP than a PCP.
Bad credit motorhome finance
Credit score and credit history are two important parts of financing. That's because a lender will look at your credit to determine whether or not they wish to lend you the money you are asking for.
If you have bad credit, it can be harder to get finance on any vehicle, including a motorhome. However, it doesn't necessarily mean that you will not be able to borrow the money you need to finance your dream.
At Car Credible, alongside our finance partners, we work with a panel of lenders, that work with a range of different credit histories to help our users find the best deal to suit their circumstances.
If you are concerned about your credit, there's no harm in getting your free quote to discover if you are eligible to finance a motorhome, and from there, you can select the offer that works for you.
No deposit motorhome finance
When taking out finance, you're generally required to put down a deposit on the vehicle, which helps a lender understand your affordability and means you pay less in repayments over time.
For some, putting down a hefty deposit is not possible, and while both PCP and HP loans would work out better for you if you could put something down - usually around 10% of the vehicle's value - it's not the end of the world.
Car Credible, alongside our finance partners, work with a panel of lenders that approve 0 deposit applications, so there's a chance you may still get into the motorhome that you wish without parting with cash upfront.
Car Credible's finance calculator
If you are unsure whether you can afford a motorhome or any vehicle, for that matter, then you can use our car finance calculator to work out how much you can expect to pay per month and over time in interest.
All we require from you is the amount that you need to borrow to purchase the RV, the length of time you wish to repay the loan, and the interest rate you think you would pay based on your credit score, and from there, we can calculate everything you should expect to pay.
Not only that, our algorithm automatically offers advice on how to reduce your repayments or interest rate, and while you don't have to accept them, it helps to give you an idea of what you could save if you make a few adjustments in your search.
Apply for finance
Once you have used our finance calculator and worked out your affordability, you may decide to take the plunge and apply for finance to get your dream motorhome.
Applying for finance is simple and won't take up too much time. All you need to do is fill out our car finance form, and once complete, depending on your eligibility, you will get offers that you can view and decide on what works best for you.
Applying for finance is free, and getting your quote in no way impacts your credit score - your credit score will only be affected if you officially apply and proceed with a lender.
There's also zero obligation from your side either. If you want to fill out the form to understand what offers are available, you don't have to follow through with any of the offers you receive; it's all in your hands.