You don’t have to bank on the unpredictable British weather and expect a Summer that is as dry, warm and sunny as the last.

If you buy a motorhome, you’ll always have somewhere dry and cosy to see out the worst our climate may bring – or drive it over to the Continent, save on rising hotel costs, and have your own home away from home wherever you are.

But buying a motorhome involves no small initial investment, so here are some tips and suggestions for going about it:

New or pre-loved?

  • there’s nothing quite like knowing that you’re the first person to have taken your motorhome on its first outing, nothing like being the first person to have slept in it – so buying a new motorhome let’s you in on all of that, together with the reassurance of a lengthy warranty;
  • the greatest obstacle, of course, is likely to be the cost of buying a new motorhome;
  • used motorhomes hold their value pretty well, but they do still depreciate, so one that is, say, three years old might offer a significant saving on the new price, even though it still has a relatively low mileage;
  • to help you decide whether to splash out on a new motorhome or get a good deal on a pre-loved vehicle, here at Derby Motorhomes we have a permanent exhibition of both new and used models from which to choose – after you’ve had your own up close and personal inspection of as many motorhomes you’d like to try out for size;

Size

  • that question of size, of course, is likely to be decided by how you are planning to use your motorhome;
  • is it principally a tourer, for instance, where you’re looking forward to venturing off the beaten track to explore winding country lanes in a suitably manoeuvrable vehicle, or one you’ll be using as your main base for a holiday, when more spaciousness and comfort is the order of the day;
  • is your motorhome likely to be used mainly just by you and your partner or do you need the extra berths for a child or two;
  • are your outings and holidays planned mainly in the UK, or will you be taking your motorhome further afield in continental Europe;
  • the balance between practical manoeuvrability, weighed against all the space and comfort a larger motorhome may offer, is likely to swing your judgment;
  • however you choose, Motorhome Planet suggests that you keep a note in the cab of the height and width (metric and imperial) of your vehicle, if you encounter any road width or bridge height restrictions;

Weight

  • closely related to the question of how you plan to use your motorhome – and, in turn, its size – is the critical matter of its weight;
  • it’s a critical factor since the weight – in technical terms, the Maximum Allowable Mass (MAM) of the vehicle – determines the category of driving licence you need;
  • the Camping and Caravanning Club explains that you currently need a Category C1 driving licence to drive a larger motorhome with an MAM between 3,500kg and 7,500kg;
  • if you passed your driving test before the 1st of January 1997, you are automatically entitled to this Category C1 licence, but if you took it since that date, you must take a separate driving test to gain the additional entitlement;
  • in either case, your current driving licence entitles you to drive motorhomes up to 3,500kg MAM – and the majority of motorhomes built in this country therefore comply with this weight restriction.

There are a number of factors to take into account when buying a motorhome – and here at Derby Motorhomes you may find all the help you need, and examples of the motorhomes to choose from.

It is often said that after their main dwelling place, a motorhome is likely to be the most expensive thing that most people will ever buy in their lives.

Whether that is correct or not in your individual circumstances is impossible to say.

What is certain though is that it is a large expenditure and one that should, therefore, be thought about carefully in terms of how to go about funding a new motorhome.

What is funding?

In the case of most buyers, the funds used for the purchase must be obtained from somewhere and through some sort of process. There are a number of different ways of going about that and here at Derby Motorhomes, we’ll try to objectively outline some of those for you.

Funding through pension cash-ins, inheritances, savings and liquidating financial instruments

It may be that you have funds potentially available to you from any of the above sources.

For example:

  • the new relaxed pension regulations might enable you to take a cash lump-sum early;
  • perhaps you have been the recipient of some sort of bequest following the death of a relative or friend;
  • it may be that you have stocks and shares that can be turned into cash.

All of these result in a situation where you will buy the vehicle outright and have no monthly repayments going forward.

You should be clear though that just because you can access the cash through these means, doesn’t necessarily mean that it is the most sensible way for you to fund a new motorhome.

That’s because depleting your potential cash reserves might leave you with a problem if you subsequently encounter some sort of emergency where you need liquid capital (cash) fast.

The issues here can be complicated. Please note that we are not qualified independent financial advisers and it may be sensible for you to consult one before cashing in things like your pension savings.

Bank loans

Depending upon your individual financial circumstances and perhaps your history over time with your bank, it may be possible to ask for a standard bank loan for your purchase.

This will give you cash you can then use to pay for the vehicle, with you repaying the loan over time on a monthly basis to the bank.

This is straightforward though the banks are perhaps a little less free with such loans for luxury items than they might have been prior to around 10 years ago. You may also need to have an excellent credit history record and find a fairly substantial deposit towards the vehicle from your own sources.

Hire Purchase (HP) and related dealer finance

This essentially involves a finance company purchasing the vehicle which legally remains their property although you will be allowed to use it as the “registered keeper”. You will repay the funds provider over time and once you make the final payment, the vehicle becomes legally yours.

You may need to find a percentage of the final price yourself by way of the traditional deposit in this way of funding a new motorhome.

Equity finance

This type of funding typically involves you obtaining a loan which is secured against something else you either own or have substantial surplus cash invested in.

For example, if your home is realistically valued at £400,000 and you have an outstanding mortgage on that of £50,000, then you have £350,000 notional equity in your property. It may be possible to borrow against that equity in order to buy your motorhome but remember your home may be at risk if you take out a loan secured against it and find yourself subsequently unable to pay.

Summary

There is a range of funding options available and we’d welcome your contact in order to clarify how we might be able to assist further.

One of the commoner questions we’re asked at Derby Motorhomes relates to the options for financing a motorhome purchase.

We’d like to share some of our observations here on that subject with you but we must point out that we are not qualified financial advisers. Our role here is simply to highlight some of the options that you may be able to choose from when buying a new motorhome.

Using your own cash

Significant numbers of buyers do so and particularly in situations where they have taken a lump sum out of a pension fund or have inherited money from a relative’s estate etc.

In some respects, paying by cash is intuitively attractive. It means you won’t be paying interest charges to a lender nor will you need to convince someone else that you are able to afford the money you are spending. It becomes your decision and yours alone.

However, you may need to keep in mind that some advisers might argue that spending your own cash is not always an optimum solution. If you spend a substantial sum of money on your motorhome from your own cash reserves, then by definition, that money isn’t available for you to use on other things.

True, you could always sell your motorhome in future to get a percentage of your cash back but that can take a little time and while you’re going through the sales process, your funds aren’t available to you.

Using Hire Purchase or a variation thereof

We’re sure that Hire Purchase (HP) needs no detailed explanation!

Suffice it to say, in summary, all that is required is for you to find a sum of your own cash to contribute towards the cost of the vehicle by way of a “deposit”. The Hire Purchase provider will then fund the balance and purchase the vehicle for you to use as its registered keeper.

You will then pay a monthly repayment of the outstanding sum, over some years, until such time as you have paid off the balance. During that period of time, the vehicle legally remains the property of the HP solution provider and you must not sell it without their written permission in advance.

The advantage of HP is that the vehicle is being purchased, in large part, with somebody else’s money, meaning you keep your capital reserves for something like an emergency. Of course, you will need to show that you are financially able to maintain the repayments.

Loans

You could go to a finance company or bank and ask them to advance you a sum of money which you can then spend on buying a new motorhome of your choice.

You will then repay the loan back to them over an agreed period of time.

Once again, you will need to find some form of deposit. You will also typically again be assessed in terms of your creditworthiness and ability to financially meet the loan repayment commitment you are entering into.

Loans offer the advantage of giving you a degree of freedom over where you purchase your vehicle and they may increase your negotiating position a little with a seller or dealership (as to them you will be effectively a cash buyer).

On the downside, certainly, bank loans are perhaps not typically as readily available for luxury items as might once have been the case.

Summary

There may, in fact, be other options open to you when buying a new motorhome. At Derby Motorhomes we work with a number of motorhome finance specialists to find you the most suitable finance solution for your next motorhome. Why not contact us today to see how we can help?

There is an old joke to the effect that “buying a vehicle is much more fun than paying for it”!

No doubt that’s true but even so, there are a range of options that might be open to you.

Cash

Numbers of people purchase their motorhome using their cash reserves. That often comes from things such as pension cash-ins, life savings, windfalls or sometimes wills and other bequests from relatives etc.

Using your own cash has two big advantages:

  • you don’t have to apply to anyone or seek the approval of a third party in terms of your spending plans. That can make the process fast;
  • your spending doesn’t incur costs in terms of the interest rates and other charges that might be associated with some loans – though that must be modified a little as outlined below.

There are two “cons” to consider too:

  • once you’ve spent your capital, it’s “tied up” and not immediately available should you need it for emergency purposes;
  • strictly speaking, you should consider what’s called the “opportunity cost” of using your own cash. If you could invest it elsewhere and get a good return, then not being able to do so because it’s now been used for your motorhome is a cost to you in the sense of it being a lost opportunity.

Financing (non-bank)

There are several potential options here including those we offer.

Perhaps the most familiar form of motorhome financing is that of Hire Purchase otherwise known as “HP”.

This probably needs no introduction but just in case, it involves:

  • finding a contribution towards the cost of the vehicle from your own finances. A figure of around 10-15% is commonplace;
  • the lender will advance you the balance in the sense that they will buy the vehicle. It becomes their legal property, but they then allow you to use it as the “registered keeper”;
  • each month you will make a set repayment to the funds At the end of the agreed term, the vehicle becomes yours in the legal sense – assuming you have made all repayments;
  • while the agreement is in force, you must not sell the vehicle or significantly modify it without the lender’s/provider’s explicit permission in advance.

This approach has been around for a long time and typically works well and to everyone’s satisfaction.

Your application will need to meet criteria in terms of you being assessed as having sufficient financial standing to indicate that you can afford the sums involved and the monthly repayments. That typically will include a credit history check.

Bank loans

This is another theoretical option for motorhome financing.

It usually works with the bank providing the money for you to go out and purchase the motorhome, with you having again made a financial contribution overall. That contribution may be typically a larger percentage than might be associated with HP.

The question as to whether the bank will demand some sort of security over the loan would be one to discuss with the bank in the individual context of your application.

There are a few points worth keeping in mind with bank loans:

  • some people might prefer to keep their motorhome financing separate from their everyday banking affairs;
  • some banks may move rather slowly in terms of application reviews;
  • not all banks are well-disposed towards loan requests for what they may see as “luxury items”!

There may be a number of options open to you in terms of funding your motorhome.

At Derby Motorhomes, we are always keen to try and ensure that you understand the pros and cons of the various routes to financing your purchase. That’s why we have produced a brief motorhome finance guide summary below.

An outright cash purchase

For many of us, this might be intuitively attractive.

It has the big advantage of meaning that you have no funding charges to pay and nobody to convince that you can afford it through various proofs of income and credit scoring assessment etc.

However, it has one significant issue associated with it – that of removing liquid capital from your financial reserves.

That simply means that once you have invested your capital into a motorhome, if you need cash in a hurry to deal with an emergency, it is no longer available to you at the stroke of a pen on a cheque. While good pre-used motorhomes are typically always in high demand, it may still take time for you to convert your vehicle into cash should an emergency arise.

Motorhome finance

There are specialist funds providers who will, essentially, purchase the vehicle for you then allow you to use it as the motorhome’s “legally registered keeper”.

You will then make monthly repayments of the sum concerned, plus the funds provider’s interest and other charges, over an agreed time period. That usually runs for some years and when you make your final repayment, the vehicle becomes legally yours.

Typically you’ll need to find a deposit as your contribution towards the overall cost. Figures of around 10-15% are commonly seen.

You’ll also need to demonstrate to the funds provider that your overall financial position is such that you will be able to comfortably afford the monthly repayments. This validation process might also include a credit risk assessment, though having a few minor problems on your credit history is typically not a showstopper.

While you are repaying the sum advanced, you must not sell or otherwise dispose of your motorhome. That would be an offence under law.

Personal Contract Purchase (PCP)

PCP is where you put down a deposit (which can be cash, part exchange or a combination of both) and fund part of the cost of the vehicle with the lender deferring, until the end of the agreement, an amount roughly equal to its future value and guarantees to this (subject to you meeting the pre-set terms of the agreement).

So, if all terms are met, you can simply hand the vehicle back to the lender at the end of the agreement or pay the lump sum to own the vehicle outright – or part exchange it for another.

Bank loans

Once extremely popular and commonplace as a way of purchasing motor vehicles and indeed motorhomes, this is perhaps today rather less commonplace.

It involves you speaking to a bank, often your existing bank, about taking out a loan in order to purchase the vehicle outright and then repaying the bank over time.

The basic financial assessment of your ability to repay the loan and a credit history check will still apply.

Although it is difficult to generalise, you may find that the bank will require a higher percentage deposit by way of your contribution. It’s also the case that, as part of natural banking services evolution, today some banks are risk-averse when it comes to personal loans for luxury items.

Equity release

In some circumstances, you may be able to borrow money against equity that you have in another asset. In most cases, that usually implies property that you own.

Let’s say, for example, that you have a property realistically valued at £200,000 and an outstanding mortgage on it of £30,000.

That means, broadly speaking, that you have £170,000 equity in your property. Some lenders may be prepared to advance loans, using your property as security providing the equity exceeds the amount you are looking to borrow.

It is worth remembering that your property may be at risk if you are unable to continue the repayments against any loan secured against it.

How we can help

At Derby Motorhomes we are FCA registered to advise customers on all aspects of motorhome finance. Why not get in touch today to see how we can help?

There are typically two questions that one regularly encounters in the domain of motorhomes and motorhome insurance:

  • can I live in my motorhome full time and keep it insured;
  • what happens to my house insurance if I am away on extended motorhome trips?

These are related issues but in some respects also very different.

Living permanently in your motorhome

It’s perhaps important to state at the outset that the vast majority of motorhome insurance providers consider motorhomes to be things you use occasionally for recreational purposes.

Typical policies will contain a clause which limits, in some form or another, just how much you can use your motorhome in a given year. That may be some months and that might be entirely satisfactory for the vast majority of motorhome owners. However, if you decide you want to spend your life on the road, it is likely to be inadequate for you.

There is no mystery behind the reasoning here.

Insurance providers have certain algorithms they use to calculate the risk of offering you cover. The facts they use to construct your risk profile include certain assumptions about your permanent address and how much time you will be living there for each year, as opposed to using your motorhome.

If you plan to be on the road all the time, in effect you don’t have a permanent address and that is going to cause many insurance providers a degree of conceptual difficulty in terms of offering you cover.

It may be possible to obtain specialist cover if you do decide to spend your life on the road but the key message here is to avoid simply selling up and driving off in your motorhome on the assumption that your existing motorhome insurance will be valid. It may not be!

How much time can you spend in your motorhome in terms of your home insurance?

This is a very different consideration and not one that is necessarily exclusively related to motorhome insurance.

The challenges here arise from the fact that your existing standard home insurance probably contains a clause limiting how long, in terms of consecutive days, you can leave your property unoccupied before your insurance is at risk.

That period of time is usually somewhere between 30 and 45 consecutive days.

If you wish to go off and spend extended time on the road discovering the world in your motorhome, you will typically need to remember that you may need to contact your home insurance provider for a discussion on the subject of “unoccupied property insurance”. This will extend a policy to cover your property for longer periods when you are not in residence.

Disclosure

A key message that comes out of both of the above points relates to disclosure or, to put it another way, making sure that your motorhome insurance provider and the company that provides your home insurance, are kept fully informed when your situation is going to vary from that which existed when you took out your cover.

Most insurance providers will try to be as flexible and helpful as they can in order to help you to enjoy your motorhome to its full extent

Some potential motorhome buyers become unnecessarily concerned about the process of seeking a finance deal to facilitate their purchase.

In the vast majority of cases, the process is relatively straightforward and in fact, not one to be feared.

Here is a brief overview of a typical application and this is based upon the assumption that you are not using your own cash to purchase the vehicle outright.

Lenders

Perhaps the first point to keep in mind is that lenders are keen to find reasons to say “yes” to your financing application. They are in business to do so, rather than to seek reasons to turn it down!

This means that typically they may be eager to receive your motorhome finance application and you have no reason to be concerned otherwise.

Your personal financial status

Anyone who is looking to lend you money, including that as part of motorhome finance, will need to understand a few things about your personal financial status:

  • that you have some capital of your own available to put into the deal. Classically called “the deposit”, this shows potential finance providers that you are someone of some substance and above all, it reduces their total financial exposure and risk. Figures of around 10-15 percent might not be unusual;
  • evidence that you have income or capital sufficient to mean that you can meet the monthly repayments associated with a deal you are progressing;
  • some indication that you normally conduct your financial affairs in a responsible fashion. This is what is often called the “credit score assessment”.

Contrary to some popular mythology, having issues on your credit history files might not be a major problem in terms of you securing motorhome finance.

The vehicle’s valuation and sum requested

As you might expect, any provider of motorhome finance will need to protect their interests in terms of being sure that the sums they are advancing make sense against the value of the asset concerned.

What this means is that they will be reviewing the price you are proposing to pay for the motorhome against their own industry-standard valuations of such vehicles.

This is rarely a problem and exists for the protection not only of the potential lenders but also the applicant in terms of avoiding you paying more for the vehicle than it is worth.

Funding options

There are a number of funding products available and space here doesn’t permit each of them to be examined in detail.

Hire Purchase (HP) is perhaps one of the more common methods and is widely understood by both the public and motorhome finance providers. It essentially involves the finance provider purchasing a vehicle then allowing you to use it as its “registered keeper”. You will then make a monthly repayment over a period of time, at the end of which, the vehicle will become legally yours.

Specialisation

Often, you don’t have to turn to a specialist lender for motorhome finance. You may find that the dealership you are buying your Auto-Sleeper motorhome from can offer you access to a number of reputable lenders.

Hand in hand with the business of selecting a motorhome goes the need to decide how you will pay for it.

The first is typically something that most people find extremely exciting. The latter is sometimes a little bit intimidating for some buyers but the good news is that we at Derby Motorhomes are here to help and make it a smooth process.

Let’s start with a brief motorhome finance guide.

Using your own capital

In some respects, this is the easiest option and the one that offers you the least amount of work. Some buyers also prefer this method because it means they are free from a debt and more independent as a result.

While we would never argue against that, it is worth keeping in mind though that it isn’t always necessarily the most advantageous route. For example, if you suddenly needed cash for an emergency, having your money tied up in a motorhome or any other asset, may mean you’ll require some time to free it up.

It’s therefore worthwhile thinking a little about whether using your own money or borrowed funds for the purchase would be the most sensible to you in your unique situation.

Borrowing – HP

Hire Purchase (HP) essentially involves someone (the funds provider) purchasing the vehicle and then allowing you to use it as if it were your own. This is under the auspices of your designation as the “registered keeper”.

You will typically need to make a contribution – sometimes called “the deposit”.

Each month you will make a standard repayment to the provider of the funds and once you make the final repayment, legal ownership of the motorhome transfers to you.

There are typically very few restrictions on what you can or cannot do with your motorhome when purchasing it under HP. You cannot though, sell your vehicle without the advance permission of the provider of the funds. That’s because it really isn’t yours to sell until you’ve made that final repayment!

Borrowing – personal loan

This involves you borrowing a sum of money from a bank or other funds provider. You then purchase a motorhome using that loan and the vehicle is immediately and legally yours.

You then repay the loan over the period of time that you have agreed with the loan provider.

It’s worth noting that typically these types of personal loans require security. Usually, that will mean giving first charge over the vehicle to the lender. That would permit them to seize the motorhome (or whatever else you have used as security) in the event you defaulted on your repayments.

In today’s financial environment, it is very difficult to find unsecured personal loans for the purchase of major items such as motorhomes.

Generalities

Whenever you are involved in borrowing money, in whatever form, it is almost inevitable that potential lenders will require a credit history check.

As such, all funding propositions are subject to approval following such checks.

Please do not assume though that just because you have a few credit history “glitches” on your record that borrowing will be closed to you. Some of the brokers we use understand that very few people these days have an entirely blemish-free credit history record!

Our services

We work with some of the top finance providers and funds brokers in the UK.

There are advantages and issues with all of the above options and the cost may vary too. A solution that is suitable for one buyer might not be optimal for another.

We would be happy to sit down and discuss just what your options are in a given situation. We will then typically be able to assist you to find a funding package that’s both suitable and cost-effective.

In terms of signing the bottom line, purchasing a new motorhome is not difficult.

However, it’s important to do some significant preparatory work before getting your pen out. Here we examine some of the key points, including one or two that are sometimes overlooked in the excitement of such a large purchase.

Finances

A significant number of motorhomes are purchased outright using cash.

The buyer may have been fortunate enough to pick up a lump sum through something such as an inheritance, a pension lump sum, an unexpected windfall and so on.

However, you may wish to think carefully before spending your disposable cash in this fashion. Once converted into a motorhome, remember that your money will start to depreciate and you also may not be able to access it quickly or cost-effectively if you need it for an emergency.

It’s often advisable to think more roundly about your finances and to look at a number of options including motorhome finance provided by a specialist. Having, for example, a hire purchase agreement in principle in your pocket might strengthen your negotiating position with dealerships.

So, invest some time in planning your motorhome finance before starting to look at those vehicles and their purchase deals.

Don’t over or under estimate your required space

There is an entire science behind estimating just how much space you will be comfortable with in your motor home. Of course, it varies from one buyer to another.

There are many guides that are worth consulting to try and make sure you don’t end up with a vehicle that is too small for your comfort or so large that you don’t feel easy about driving it.

Inspect, view and test drive the model of motorhome you’re interested in

It can be risky to base such a large purchasing decision on an inspection of a model a dealership tells you is “fairly close” to the one you have in mind.

Motorhomes are very likely to be, after your own house, the second most expensive purchase you will ever make. You wouldn’t normally decide to purchase a property unseen based on a viewing of one that was vaguely similar many miles away, so don’t be tempted to do the same where a motorhome is concerned.

Our virtual showrooms make it easy for you to view your proposed motorhome from the comfort of your home.

Do serious and independent research

No manufacturer or dealership is likely to publish negative reviews on their website about their services or a vehicle they’ve sold.

There are though plenty of unbiased and objective review sites on line. Use them to check out what real buyers have thought of the vehicle you’re considering and if possible, the post-sales service standards of the dealership.

Satisfy yourself that the site you’re using is really unbiased and isn’t just a source of sponsored and positive publicity for dealerships and manufacturers.

Don’t underestimate extra comfort

It’s often worth spending what might be relatively modest extra sums to provide you with a few optional extras or even a model upgrade, if it helps make the motorhome feel more like a true home-from-home.

Consider a basic familiarisation course

If you’re unused to driving a motorhome (or light vans etc.) it can initially be slightly intimidating. For example, even with modern all angle cameras in the cab, reversing can be an acquired art.

Many dealerships will be able to recommend a quick overview, familiarisation and manoeuvring course. It might be an idea to take one in advance of deciding on a specific purchase, as it might even influence your final choice of vehicle.

 

The first point to make is that what follows is not financial advice.

Just what methods of funding would be suitable for you will depend a lot upon your own personal financial situation. As that isn’t known here, please keep in mind that the points below are generalities that may or may not apply in your unique circumstances.

Finding finance

In the majority of cases, there are typically four potential sources of motorhome finance:

  • your bank;
  • the dealership;
  • a finance company you’ve found yourself;
  • friends, family or your own financial resources (e.g. a retirement lump-sum).

As this is about finding finance, the last one above won’t be discussed further.

The other three have their strengths and some issues to consider.

Your position

Whoever it is you’re asking to advance motorhome finance, they will typically be looking for you to bring certain things to the table:

  • evidence that you can afford the repayment schedule (usually in the form of regular income);
  • a price for the vehicle proposed that makes sense when viewed against its realistic market value;
  • an identity and address that can be easily verified against things such as the electoral register – this is to prove that you are who you say you are;
  • a financial contribution towards the price. This is sometimes called “the deposit” and it is a way of reducing or sharing the risk with the lender. Typically, the more of your own money you’re including as the deposit, the easier you should find it to secure funding at attractive rates (assuming all other things are equal);
  • an acceptable credit history record. Contrary to some myth, credit history issues are NOT usually a showstopper but they may affect how much you’ll need to pay for your finance.

Bank funding

This has a major attraction for some in that it’s familiar. Banks have also cleverly positioned themselves in the marketplace over generations so that they sound like solid pillars of the community – and that still appeals to some.

On the downside, you might find that:

  • they’re rather slow to make decisions;
  • it’s possible they’ll demand a higher contribution from you than some other potential providers;
  • you may wish to keep your vehicle purchasing affairs private in terms of your bank’s view of the totality of your engagements;
  • the banks can be risk-averse and less receptive to luxury vehicle financing than some other sources.

Dealerships

Dealerships have a big advantage – they know the finance providers who are likely to be receptive to applications relating to motorhome finance. This route might for example, help to keep the deposit you need to provide at a lower level.

It might save you a lot of time and trouble because it’s one-stop shopping.

Things to keep in mind might include:

  • some may prefer to keep the business of finding finance and driving a deal on a motorhome, separate (though due to the high demand for motorhomes and the fact they hold their prices, this might be less of an issue than it would be with cars);
  • do review the finance proposition from the dealership just as you would any other, looking at interest rates and so on.

Finance companies of your own choice

Remember, every time you make a loan application and it’s refused, that will potentially damage your credit score. So, avoid making large numbers of random applications in the hope you’ll get a favourable outcome and instead look for companies that have a track record in motorhome finance.

Look at all the usual factors including:

  • whether they’re a fully regulated company;
  • the interest rate they’re apply in AER terms;
  • how long they’ll allow repayments over;
  • the maximum age of the vehicle they’ll accept;
  • any conditions or penalty clauses etc.

Take your time reviewing their proposition and if you’re not really comfortable with financial concepts, get objective advice from someone who is.