Staycations are expected to boom in 2021 now that we can once again travel for pleasure.
If you’re thinking about visiting somewhere else in the UK for a break, you may be considering buying a motorhome.
The one thing holding you back may be your finances. The good news is that there are a number of options when it comes to paying for your motorhome.
Read on as we take a look at how to organise your motorhome finance.
Personal Savings
The simplest way to pay for a motorhome is with your own personal savings.
If you have the money available, paying outright will obviously eat into your savings, but you’ll also save on any interest you might pay on a loan or other finance option.
Buying a used motorhome can be a more cost-effective way to go if you don’t have a huge amount of savings.
Personal Loan
You can also consider a personal loan from a bank or other provider.
In the wake of the pandemic, banks may be a bit more reluctant to lend without being certain that the loan can be repaid even if further lockdowns are required.
It means that in the current climate, a bank loan may not be the best option.
Hire Purchase
If you’re looking to buy a motorhome on finance you have two main options.
The first is hire purchase. Hire purchase is where you take out a loan for the price of the motorhome (minus the deposit) and pay off regular instalments until the loan plus interest is paid off. When you’ve paid off the entire amount, you own the motorhome.
You will need to factor in motorhome finance rates as well as the day-to-day running costs of a motorhome to ensure you can afford the repayments.
Personal Contract Purchase
A PCP is similar to a hire purchase agreement but works slightly differently.
For example, you might have a PCP for five years. You would take out a loan for the full purchase amount (minus deposit) but instead of paying off the full value of the loan, you would only a proportion. If you bought a motorhome for £45,000 and it was estimated to be worth £25,000 after five years, you would only need to pay off £20,000 of your loan (plus interest) meaning you have smaller repayments.
However, at the end of the loan period, you don’t own the vehicle. If you want to keep it, you’d need to make a balloon payment; usually the £25,000 that the motorhome is now worth. If you don’t want to keep the motorhome, you simply hand it back, and you’re done.
The benefit of this method is that you will pay less each month, although you’ll still be paying interest on the full value of the motorhome.
Are You Looking for Motorhome Finance?
If you’re looking for a new or used motorhome, then we’re here to help.
We have a wide range of both new and used models available, and we use Black Horse for motorhome finance. You can get a finance quote online; look for the Black Horse banner on any individual motorhome page.
With both new and used motorhome financing available, you can have the motorhome you want on great terms. Check out the motorhomes we have in stock today.
