Campervan & Motorhome Finance – A Guide
From refinancing the motorhome loan you already have to finding bad credit campervan loans, before you launch into the credit checks, here are some key things to consider:
Can I afford a motorhome?
Like buying a house or a car, looking at the upfront price of a camper can feel rather daunting. Yet often the full sale price matters far less than the monthly payment. Providing you can afford that, and afford it for the length of the loan, the full sale price is less relevant.
To find out your likely monthly repayments on the motorhome of your dreams, use our Quick Calculator. Just enter the amount you’d like to borrow and the length of the loan and you’ll be given an estimated monthly payment that can guide your motorhome browsing. Better still, using the calculator has no effect on your credit rating.
Then, when you’re ready to buy, call us on 01625 460454 or make your application online.
How do I get my campervan loan approved?
Motorhome loans are loans like any other. You’ll need to pass a credit check to get the loan you want so, if you can, it’s worth trying to boost your credit score in the months preceding your application for the motor home finance.
If you’re no longer using credit cards, cancel them. Make sure any existing loans or credit payments continue to be paid on time. Don’t apply for any credit ‘just in case’ and try and keep any credit balances low.
Doing all of that well in advance of your purchase will mean that when the time comes to arrange your motorhome loan financing, the positive steps you’ve taken will have had time to filter through to your credit score.
Motorhome loan terms – how long will my loan be?
We’re extremely flexible with our vehicle financing terms. The average loan term for a motorhome is 10 years (it’s a little less for a caravan) but you can choose as little as two years.
What matters is affordability. The longest terms are typically available on newer vehicles, which can often make them every bit as affordable as a used model.
What sort of loan can I get?
We typically operate three types of finance arrangement (much the same as you’ll find if you’re looking for a car).
Hire Purchase (HP)
Our most popular finance option and gives you up to 10 years to repay the cost of your van. Despite the name, at the end of the term the motorhome is yours to keep.
The big advantage of this option is that the finance isn’t linked directly to the motorhome, so if you want to sell or part-ex it you can, without the finance getting in the way.
Personal contract purchase (PCP)
You’ll be familiar with this option if you’ve bought a car recently. Ideal if you’re planning to part exchange the van for another model at the end of the term.
Can I get finance to buy a motorhome from a private seller?
Yes. Traditionally, it’s been much harder to find low cost loans for campervans sold privately, but at Auto Finance Online we work with many lenders who finance private sales all the time.
So if you have your eye on the perfect used motorhome, wherever it’s for sale, use the calculator to check your approximate monthly payments, then call us on 01625 460454.
Poor credit campervan loans – can I still get a camper with a bad credit history?
Motorhome financing with a bad credit record is still possible. You – or more likely your motorhome financing company – will just need to work a little harder to find great deals. Fortunately, Auto Finance Online specialises in dealing with bad credit loans.
So, no matter what your credit history, don’t automatically assume that you won’t be able to apply for a camper loan. Talk to us, and we’ll do our best to help.
Can I refinance my motorhome loan?
If you’ve been tied into a campervan finance deal for a few years, you may be able to save money by switching your loan provider. If you’re now no longer tied into a deal – or if your current fixed rate is about to come to an end, get in touch. Refinance your loan and you could find that you’re able to cut the cost of heading to the great outdoors.
Does my loan application need a guarantor?
It’s rare that we require guarantors for our loan applications, but it does occasionally happen, usually as a result of age. If we believe using a guarantor would improve the chances of your finance application being accepted, we’ll tell you so.
More common is using a ‘joint hirer’. Here, two people take the loan. This can be a way of securing a larger overall motorhome loan. It can help you access a better interest rate. And for the lender, it will help to demonstrate affordability. Again, if a joint application would be likely to benefit your purchase, we will mention this to you.
Should I consider dealer finance?
Every motorhome dealer will have its own finance service. You could secure your loan through them, but the chances are you’ll be selecting a more expensive form of finance from a much smaller pool of lenders.
With Auto Finance Online, we use a panel of lenders offering rates from just 5.9%. So before you sign, talk to us. We could help you buy exactly the same camper for a much lower monthly payment.
How much do motorhomes depreciate?
It’s always worth considering the vehicle’s value at the end of the loan period when agreeing to buy a motorhome on finance. Wear and tear and mileage will always play a part but, in general, motorhomes tend to hold their value rather well, and certainly better than your average car.
In terms of long term planning, that can make financial decisions easier. For example, you might like to work your way up the models by agreeing used motorhome financing now, paying off the motorhome loan, then selling on to give you a greater choice next time round.
What additional costs will I need to pay?
Bear in mind that finance for a motorhome isn’t the only cost you’ll need to consider. Additionally, you’ll need to be prepared to pay for:
- Site fees
- Road tax
If your heart’s set on finding great motor home finance deals, none of those additionals are likely to change anything, but you do need to factor them into your costs.
Is a motorhome or campervan the right leisure vehicle for me?
If you’re weighing up the pros and cons of motorhome finance in the UK, the following points may be crucial to your decision:
- You may feel more comfortable driving your holiday home (i.e. in a campervan) than towing it
- Your car may not be powerful enough to tow a tourer
- You may prefer the freedom of being able to unhook the car once you reach your destination. With a motorhome, much like a tortoise, your home is always on your back (although some campers can tow small cars)
- You may not be able to park a motorhome anywhere you like
If a motorhome isn’t the right option for you, explore our caravan financing options.
How do I choose the right campervan for me?
- Campervan/Motorhome type: Partly a question of style, definitely a matter of capacity, there’s a bewildering array of motorhome body types to choose from. Start by choosing the van type that has the capacity you need, then choose a style you like.
- Size: Choosing the right campervan essentially comes down to achieving the right balance of capacity (so everyone can fit in comfortably) and features with size and weight, so driving is easier and you don’t have to spend hours looking for a suitable parking spot. Look for the motorhome that hits the sweet spot between comfort, features and practicality.
- Berths: Take the sleep test. Lie on the beds and make sure there’s sufficient length and width for comfort. Also, try assembling the beds to ensure it really is as quick and simple as the manufacturer promises.
- Features: Every motorhome is impressively well equipped, but you may have specific requirements depending on your touring plans. If you’re venturing into the cold, you’ll want to ensure water tanks and plumbing won’t freeze. If heat is more your thing, you’ll want to ensure that the air conditioning is top spec.
- Modifications: Thinking of adding an awning or a bike rack? Whether you’re adding them at the outset or leaving it for later, ensure the vehicle you buy can be easily adapted.
Start your journey here
Auto Finance Online is the trusted specialist for motorhome finance in the UK and we’ve real expertise in helping people with bad credit get loans they can afford. Take a look at our TrustPilot scores and you’ll see that (at time of writing) 97% of our customers believed our service was excellent (the rest thought we were merely ‘”great”!). We make buying a new or used motorhome quick, simple and hiccup-free. We’d love to do the same for you.
To find out how much you could afford, try our loan calculator now, then call us on 01625 460454.