Finance for New Motorhome

[Dave46049]

I get my new MH later this year, and am now actively looking at the method of finance.

The dealer I'm getting it from is quoting 7.9% apr - which I thought is quite high.

I was thinking about a bank loan, but as a personal loan I'd be looking at 30k which is quite a bit.

Are there any finance companies that are MH friendly when it comes to purchase - I was thinking about MotoNova or Black Horse but they seem to only do cars.

Thanks

 

[James-Alex]

We added a bit to are mortgage. Flexibility to pay off early and also the rate and duration of mortgage made it more appealing to us.

 

[Dave46049]

We added a bit to are mortgage. Flexibility to pay off early and also the rate and duration of mortgage made it more appealing to us.

Hi, Ah yes thats a good idea - and you get a better rate - unfortunately I'm not in a position to do that so it has to be a straight loan.

 

[Hellski]

Blackhorse do offer motorhome finance. There's actually many lenders that will consider financing motorhome but unfortunately, most are only accessible via the dealer you are dealing with and often they will put you in touch with the one giving them the best deal. I had a real eye opener at the Peterborough show a few years ago when I was introduced to a broker operating for many of the dealers at the show...........

If you google Motorhome finance, there's quite a few companies that will be shown within the results however, some will cap the amount available you can borrow, as well as the term of the loan.

Have you tried a finance broker who specialise in motorhomes and other high end assists, e.g. Pegasus motorhome finance?

 

[Ridgeway]

I don't know UK rates these days but have just secured 1.9% on a car lease so 7.90% sounds sky high to me.... but i'm not in the UK.

MoHo's are a good vehicle to lend against and to borrow on as they devalue very slowly, some how our's seems to be worth 65% of the value we paid for it 8yrs ago try that with a car....

First decide what product you want:

loan
lease
lease with large residual (can't remember the UK industry term???)

Try your bank first although some don't like to much debt on them and will turn you away, then general lenders although as you say they may not want to lend on vehicles they are not familiar with. Overall i'd argue that interest rates on a MoHo should be lower than those on cars.

Beyond that push it back to the dealer, get him to earn his commission.

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[Charlie57]

Check this

How to get a personal loan

This MoneySavingExpert guide details the cheapest personal loans, but also looks at whether options like credit cards might be cheaper for you. Find out Martin Lewis’ top picks.

www.moneysavingexpert.com

 

[Coastal Cruiser.]

Have a mate who is a fairly large car dealer speaking to him a while back and he was getting money at 2.5% for customers with good credit history.
Not to bad when you see some garages still quote 12% on adverts!!

 

[Fulham Dave]

We took out 10, zero % credit cards with up to 27 months repayment terms to cover over £100,000 of credit when buying our van last year. We are paying the minimum amount back each month whilst putting the money we save into a so called "high" interest rate account. Balance transfers to a new card at the end of the fixed zero % term is normally around 3%. May work for some, not for others, but certainly working for us

 

[Ridgeway]

We took out 10, zero % credit cards with up to 27 months repayment terms to cover over £100,000 of credit when buying our van last year. We are paying the minimum amount back each month whilst putting the money we save into a so called "high" interest rate account. Balance transfers to a new card at the end of the fixed zero % term is normally around 3%. May work for some, not for others, but certainly working for us

Now that is smart !!! love it.

 

[Figaro]

that is smart !!! love it.

Seems like a lit of work to keep track of everything though and make sure no payments are missed / organising new deals when existing expire ?

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[Ridgeway]

Seems like a lit of work to keep track of everything though and make sure no payments are missed / organising new deals when existing expire ?

but to save £4-6k i'd say worth it

 

[Fulham Dave]

Quite easy really, establish a spreadsheet with all cards, set up a DD for min payment, set a reminder on calendar 2 months prior to when deal expires - nothing else to do.

 

[Ridgeway]

Quite easy really, establish a spreadsheet with all cards, set up a DD for min payment, set a reminder on calendar 2 months prior to when deal expires - nothing else to do.

Then just work out what to spend that £4-6k saving on

 

[Emmit]

Go to Money Saving Expert.
They will highlight where to get quotes for loans. It's a strange one that the less you borrow, the more the interest rate seems to be.

How to get a personal loan

This MoneySavingExpert guide includes the cheapest personal loans, and options such as credit cards, which may be cheaper for you. See Martin Lewis's top picks.

www.moneysavingexpert.com

Having got your loan, you could then find that one of the credit companies will offer zero percent over an extended period of time with only a minimum payment to be made in the intervening months. You could use them to pay off the first loan.

Best 0% credit cards

If you spend on cards but don't repay in full, try interest-free credit cards up to 21 months. See Martin Lewis' top picks on 0% credit cards.

www.moneysavingexpert.com

We have done this in the past and saved quite a lot on the interest the first loan were charging.

Loans have changed from how they were structured years ago. Now, interest is charged on a daily basis and not front loaded. You are not paying off the full amount of interest right at the beginning of the loan.

That's a simplified version of what Fulham Dave said.

 

[Puddleduck]

We've taken out zero interest interest credit card loans (often with a 3% fee) for a two year or longer repayment period and bought premium bonds I just set up a standing order to repay what the minimum repayment was in month one for the duration of the loan and then a final amount when the repayment is due. It says on the statement when it is due so it's just a question of putting it in the diary and cashing in the bonds a month in advance.

We've never won a huge prize but enough to pay the fee back and a bit more.

Hopefully there will be another offer in the next 6 months and I'll do it again. The last offer was 3% fee per year over 2 years and I didn't go for that one. I am sure they know I am TARTING. with the money

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[pampam]

Ive used black horse 3 times for three different motorhomes thru the dealership, when we part exed we seemedto get good deals because we stayed with black horse, also a good company to have on your side if things go terribly wrong and the van has major faults, because obviously the vans not yours till loans paid off, so they have a vested interest,and a lot more power to their elbow,than your average joe

 

[gerrym11]

I don't know UK rates these days but have just secured 1.9% on a car lease so 7.90% sounds sky high to me.... but i'm not in the UK.

MoHo's are a good vehicle to lend against and to borrow on as they devalue very slowly, some how our's seems to be worth 65% of the value we paid for it 8yrs ago try that with a car....

First decide what product you want:

loan
lease
lease with large residual (can't remember the UK industry term???)

Try your bank first although some don't like to much debt on them and will turn you away, then general lenders although as you say they may not want to lend on vehicles they are not familiar with. Overall i'd argue that interest rates on a MoHo should be lower than those on cars.

Beyond that push it back to the dealer, get him to earn his commission.

You are comparing apples with oranges when you talk about a car lease of 1.9%. It wouldn't be impossible to get a car lease or a car loan of 0%. The only way to have an apples to apples comparison is to talk about cash finance deals. In the current market 7.9% for a loan over £25k is not a bad rate.

 

[Phill D]

Have a look at Zopa they have a variety of different rates but it all depends on your credit rating can be as low as 3%.

 

[RV-AL]

I get my new MH later this year, and am now actively looking at the method of finance.

The dealer I'm getting it from is quoting 7.9% apr - which I thought is quite high.

I was thinking about a bank loan, but as a personal loan I'd be looking at 30k which is quite a bit.

Are there any finance companies that are MH friendly when it comes to purchase - I was thinking about MotoNova or Black Horse but they seem to only do cars.

Thanks

Try PCF bank. They specialise in motorhomes.

Motorhomes and Caravans | PCF Bank

PCF Bank

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