Owning your own motorhome gives you the freedom to go on adventures whenever you want to. All you need to do is pack a suitcase and you’re ready to hit the open road. That said, there’s no denying that buying a motorhome can be expensive, especially if you don’t have a lot of spare cash lying around.
If this is the case for you, but you still have your heart set on owning a motorhome, the guide below is just what you need. Read on to discover everything there is to know about how to finance a motorhome, with options to suit all financial circumstances.
Take out a bank loan
Bank loans are a popular choice for people wanting to buy a new car, but did you know they can also be used to purchase a motorhome? Based on your credit score and credit rating, bank loans are a type of secured loan that you’re required to pay back over an agreed period.
Typically, banks offer good interest rates which makes them an attractive choice for many. However, you may be turned down if your credit score or credit rating is poor. If you do get turned down by your bank, consider turning to Auto Finance Online who offer low APRs and can help you to find the best deals currently available.
Look to hire purchase
Hire purchase, often referred to as HP or an instalment plan, is an arrangement where you acquire an asset, in this instance, a motorhome, by paying an initial despot and then repaying the rest of the balance of the asset plus interest over time.
In most cases, you need to be able to put down at least a 10% deposit to qualify for a hire purchase and you need to be able to show that you can comfortably make the monthly repayments.
Use your savings
If you have savings, then it can make good financial sense to use some of them to purchase your motorhome. That said, if you’re currently enjoying a high interest rate on your savings and the interest on a bank loan is relatively low, it might be a better idea to leave your savings where they are and borrow the amount needed from your bank.
Don’t be tempted to dip into your emergency saving funds (if you have one), as this should be kept for emergencies such as if you lose your job.
Use a broker
If you have a poor credit rating or credit score or you can’t take out a bank or personal loan due to an outstanding amount on an existing one, then you might want to consider enlisting the services of a broker.
If you’re new to using brokers, it’s important that you understand that they’re not lenders, but someone who can help you with the application process of financing a motorhome.
One of the best aspects of hiring a broker is that they should have good connections in the industry, enabling them to find the best deals and rates for your circumstances.