Motorhome Finance – A Guide
From refinancing the RV loan you already have to finding bad credit campervan & motorhome loans, before you launch into the credit checks, here are 6 key things to consider:
1. Caravan or motorhome finance?
Actually, the decision may not be down to cost. Financing a used motorhome or campervan, for example, doesn’t have to cost dramatically more than a caravan. The same is true of new models – it’s all a matter of age, mileage, size and spec.
If you’re weighing up the pros and cons of motorhome finance in the UK, the following points may be more crucial to your decision:
- You may feel more comfortable driving your holiday home (i.e. in a motorhome, campervan or RV) than towing it
- Your car may not be powerful enough to tow a caravan
- 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
- You may not be able to park a motorhome anywhere you like
- The average loan term on a motorhome is 10 years, meaning you could finance a motorhome for the same price of a caravan
If a caravan is more likely to suit your needs, find caravan financing options.
2. Agreeing the RV loan
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 RV purchase will mean that when the time comes to arrange your RV loan financing, the positive steps you’ve taken will have had time to filter through to your credit score.
3. Poor credit RV loans
Motorhome financing with a bad credit record is still possible. You – or more likely your financing company – will just need to work a little harder to find great deals.
Fortunately, Auto Finance Online specialises in dealing with bad credit RV loans.
So, no matter what your credit history, don’t automatically assume that you won’t be able to apply for an RV loan. Talk to us, and we’ll do our best to help – we have a 90% success rate.
4. Refinancing your RV loan
If you’ve been tied into an RV 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 RV loan and you could find that you’re able to cut the cost of heading to the great outdoors.
It’s always worth considering the RV’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 and campervans 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.
6. Additional costs
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 you’re 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.
Start your journey here
Auto Finance Online is the trusted specialist for RV finance in the UK and we’ve real expertise in helping people with bad credit get RV loans they can afford.
For new and used motorhome and campervan loans, use our loan calculator to see how much you could afford and call us on 01477 531 288.