Buying any motorhome represents a more significant investment than buying a runabout car. Buying a motorhome in the distinguished class and luxury of an Auto-Sleeper is likely to be a still bigger investment.
So, how might you go about financing your Auto-Sleeper purchase?
If it has long been your dream to own a motorhome, you might have been saving over the years for the tidy sum likely to be required.
Even if you are among the fortunate few who have savings enough to purchase an Auto-Sleeper, however, you might be spending the entire amount in one big hit, with no further savings to fall back upon at any later stage in your life.
For homeowners who have reached the age of 55 or over, the dreams they nurtured in owning a motorhome might be realised through equity release.
Typically, this involves a so-called lifetime mortgage on the home that is owned, so that you have the cash released through its equity but make no repayments on the loan until the property is sold, you go into long-term care or you die.
According to a story in the Financial Times on the 4th of April 2019, a staggering £1.08 billion had been raised by homeowners in this way during the final quarter of 2018 alone.
Auto-Sleeper finance, on the other hand, helps you avoid having to do anything quite as drastic as blowing your savings or unlocking the equity in your home in order to purchase a motorhome.
A reputable Auto-Sleeper dealer is almost certain to be able to offer a range of finance options – and, to do so, must be registered with and authorised by the Financial Conduct Authority (FCA).
Those options might include:
- a personal loan – for the whole or just part of the purchase of your Auto-Sleeper – with repayment terms spread over several years;
- hire purchase – which typically involves you paying an initial deposit of around 10% of the purchase price – and equal monthly payments until the final balance is cleared; or
- Personal Contract Purchase (PCP) – the widely popular method of car finance which has also been extended to the purchase of motorhomes and which leaves you the option of returning the vehicle at the end of the contract agreement instead of paying the final “balloon” instalment to complete the purchase.
As with any finance credit agreement, of course, the terms of your Auto-Sleeper finance is going to depend on your creditworthiness – the healthier your credit score, the more favourable the rate of interest you are likely to be offered and the better your chances of securing the credit you need.
In many instances, the lenders have user-friendly online calculators that help you decide how much you need to borrow, the repayment terms and any other conditions that may be attached to your Auto-Sleeper finance deal.
Specialist Auto-Sleeper dealers – such as ourselves at Derby Motorhomes – are likely to have close working relationships with several major banks, brokers and financial institutions, offering you a wide choice of different types of finance to suit your particular needs and circumstances.