Financing your caravan or motorhome
blog / advice / new caravans / motorhomes / finance
If you’re itching to purchase a caravan or motorhome but don’t have the cash to pay for it up front, relax - there are several finance options available to you that you should explore before deciding how to proceed.
Buying a leisure vehicle is a big decision, but our various finance options can make it possible to get what you want without compromising your current lifestyle. In fact, by buying a caravan or motorhome, you’ll be enhancing it! You’ll have the means of getting away to wherever you fancy at the drop of a hat, and all for a manageable monthly payment.
There are a range of different finance options available depending on what you’re looking to buy - caravan, motorhome, VW campervan - and new or pre-owned.
Types of insurance
Hire Purchase (HP)
HP is a type of finance that allows you to buy an item outright, but without having to pay the total amount up front. The whole cost of the caravan or motorhome is split across a deposit and a number of fixed monthly payments, usually spread over 24-60 months (some lenders offer longer terms). There is no large final sum to pay and you automatically own the vehicle as soon as you've made the final payment.
The advantages of it are that you will usually pay less for this type of finance than if you were to go for Personal Contract Purchase (PCP), you have a say in how much deposit you put down (though some lenders ask for a minimum of 10%), you can set the length of term according to what you can afford each month and you can pay off lump sums along the way if you wish, so it’s pretty flexible. It’s also reassuring to know that the loan is on the vehicle itself, not on you.
Personal Contract Purchase (PCP)
PCP is great for those who do not have large amounts of disposable income every month as the monthly payments are smaller and manageable. At the end of the term, which is usually between 24 and 60 months (some lenders offer longer terms), you’ll have the option to pay a lump sum to purchase the vehicle, or simply trade it in and hand the keys back. There is no minimum deposit, but you can put one down if you wish so it's a very flexible finance option. As with HP, the loan is on the vehicle, not on you.
Lenders we’re partnered with
Black Horse Finance
Black Horse offers finance on both new and pre-owned caravans and motorhomes. They offer longer terms, of up to 10 years on new vehicles and 7 years on pre-owned vehicles, meaning the cost can be spread over a longer period if that is what will suit you best. There is a flat rate of interest for everyone, which is 8.9%, so it really is what you see is what you get.
Both HP and PCP options are available, so you can go for whichever best suits your circumstances. There is no minimum deposit for either, although you do have the option to put one down if you wish. It's definitely a flexible finance option, one that allows you to pay off lump sums as and when you wish if you have some extra cash. This will enable you to reduce your future payment amounts or shorten your term. This type of finance is easy to get out of if you need to as well.
Black Horse Finance will make the funding of your new caravan or motorhome simple and convenient with affordable payments and flexible deposits, all tailored to your own individual requirements.
Mann Island finance is offered on VW campervans only and again there is a flat rate of interest to everyone of 10.9%. You can choose from HP or Lease Hire to suit yourselves. HP gives you the opportunity to decide on deposit amount (minimum of 10%), length of term (usually between 3 and 10 years) and the option to pay off lump sums along the way to shorten your term.
Lease Hire in this instance means that you’ll be leasing the campervan by paying monthly payments for the set term, then at the end of this period, you’re obligated to purchase. Your last payment will be 55% of the original retail price. You can pay this outright, source another loan or sell the vehicle to pay off the balance, the choice is yours.
To obtain this finance, a credit check will need to be done by Mann Island themselves, but you can go online and use a credit calculator prior to this to give you an idea as to whether you’re likely to be accepted before they do a full credit check.
Why go for finance?
- It will enable you to spread the cost of purchasing your leisure vehicle over a number of years to suit you.
- You can opt to buy the vehicle outright via HP or ‘lease it’ via PCP and either hand it back at the end of the term or pay a lump sum to purchase.
- It’s flexible - you can have a say in the length or term, deposit amount and whether to pay off lump sums along the way to shorten the term.
- It may enable you to get a newer or higher spec vehicle than you could otherwise have afforded.
- Competitive interest rates - much lower than a credit card.
- You’ll be able to borrow more than you would on a credit card, which generally have lower credit limits.
We’re very knowledgeable when it comes to finance, so please pop into the showroom or give us a call on 01962 714 844 to discuss the options with us. We can help you arrange the most suitable deal for you, give you example terms, or even make a proposal so you know the money you need is approved prior to purchase - just get in touch and ask!
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