Finance (1 Viewer)

Lisett

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May 22, 2013
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Im a newbie.
Does anyone know what the longest term of finance available on a brand new motorhome and if anyone is doing interest free. A bit of a joke I know but was just curious?
 

scousebird

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Apr 18, 2012
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Don't know about finance on a MH but wouldn't a personal loan from your bank/building society be better, our bank is offering loans at 4% at the moment
 
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Lisett

Free Member
May 22, 2013
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Ochiltree
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Im a newbie.
Yeah I'm not getting one. I was having a look round our local dealer the other day and there was a salesman trying the hard sell on a couple and mentioning finance and 10 year deals and low interest rates. It made me laugh and got me curious of how others do it.

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Nov 6, 2013
1,403
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28,914
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Since the beginning
I believe 10 years is the longest they offer on a m/h
HSBC are currently offering personal loans at 3.9% (up to £15K & up to 5yrs)

Reason the salesman was giving it the big sell, is because they get big kick backs from finance / insurers.
 

Terry

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Dec 27, 2007
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Can't remember ;)
Hi not sure but I know it used to be over 10 yrs and around 10 % interest or at least that's what a mate paid a few yrs ago --0 % interest you have got to be joking :D-Of course you could always take a gamble with your house for a lower interest loan fixed for 5 yrs :eek:
terry
 

pappajohn

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Aug 26, 2007
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Finance on a new van will not be a personal loan....it is a full hire purchase agreement.....and different financial rules apply regarding early repayment.

You cannot get out of the finance early without paying all payments up front minus around 1.5%.

Interest is added at the beginning of the contract, divided by the number of repayments, and must be repaid in full even if the contract is fulfilled early.
We bought a used van for £28000 on full finance (no deposit) over 10 years.
6 months later we were in a position to repay in full........except to repay in full would have cost almost £39000.
£11000 interest over 6 months.....nice if you are a finance house

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Easyliving

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Dec 4, 2012
956
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Hi

I notice from 'MMM' that Marquis are offering 0% finance on Elddis motorhomes, maybe others as well. Its only over 3 years though and with a fair size deposit.

Paul
 

Emmit

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Aug 14, 2009
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The below isn't for everyone but Virgin are doing a 32 month Interest Free Credit card with a 4% bank Transfer fee.
We've just used it to save us about £800 in interest charges on our current loan.

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2

2657

Deleted User
Cash is the only way to get a good deal and buy within your means .......sod paying loads of interest for something that will have lost over half it's value by the time you pay for it

I think that most people that are looking for finance are looking because they don't have the cash:)
 
Mar 23, 2012
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I think that most people that are looking for finance are looking because they don't have the cash:)
Yes but worth thinking about what the cost will be if you come by some and are able to repay early. Just think if you were lending the money would you give a better rate secured on a motorhome possibly up to 10 years old or a house!!!! better to up the mortgage or wait and save up
 

Lynne Steele

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Feb 13, 2015
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4 years
Personally I would never pay cash outright, even if you take a small amount of finance and you have a problem with your motorhome, they act on your behalf and either get the vehicle rejected or repaired, as the officially own the vehicle, saved us.

Lynne

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2

2657

Deleted User
Yes but worth thinking about what the cost will be if you come by some and are able to repay early. Just think if you were lending the money would you give a better rate secured on a motorhome possibly up to 10 years old or a house!!!! better to up the mortgage or wait and save up

Some of us might have to wait a long time though and there will always be other uses for the savings that crop up.

Agree about the mortgage though, I have always manipulated credit to my advantage by shopping around and being aware of the traps in 'interest free' offers. I have often used these offers even when the cash has been available, money better off in my bank than theirs, when we had a house it was re mortgaged several times before the current trend for short term fixed mortgages came into vogue.

How many businesses do not have credit facilities.

Use credit to your advantage not the credit providers:)
 

Puddleduck

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Jan 15, 2014
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On and off for many years.
It won't cover the full cost but many credit cards are doing 0%, although there is a charge for the transfer and it will probably be for about 24 months...... but when that runs out you can transfer the balance again.

I bought my car using a 0% deal as the transfer fee was only 1% and I was getting more than that on my savings account. I'd rather have the capital in my account and get the interest. I've just set up a standing order to pay the credit card off over the time. Minimum payment until the last month when the balance will be paid off. :)
 

moulin 87

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Aug 31, 2015
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It may not be available in the UK but we recently ordered a Dethleffs in France, where we live, and as part of their deal for 2016 vans was an offer for subsidised finance for up to 12 years on all or part of the total..If you took out at least €10000 euros then for however long you agreed for the finance agreement, ( for us the minimum over 8 years), then all the constituents parts of the vehicle were guaranteed for that period ie 8 years...Motor, Chassis, Fixtures & Fittings, Water Ingress etc. After 6 months we are able to repay up to 50% of the balance but no more to keep this additional warranty valid...
No doubt there is an additional insurance policy somewhere hidden in the cost, but I think overall the interest rate was less than 2% after the Dethleffs subsidy.

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Kool Kroozer

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Apr 19, 2014
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Always learning
Finance is really easy to get too, loans, personal or otherwise ask for proof of annual salary, outgoings etc, Finance only does background checks to see if you have ever been blacklisted or got bad debt etc - they do ask about annual salary and how much you have remaining on your mortgage as such but ask to see no proof.
 

Puddleduck

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Jan 15, 2014
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Scottish Borders
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On and off for many years.
Just one word of warning (which I hope is really not necessary) please make sure you can pay off any loan and don't get into financial difficulty paying off finance. Credit is a double edged sword.
 
Jun 17, 2015
265
434
Portsmouth
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36,836
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Pilote G740
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July 2015 plus 20 years of camping
Personally I would never pay cash outright, even if you take a small amount of finance and you have a problem with your motorhome, they act on your behalf and either get the vehicle rejected or repaired, as the officially own the vehicle, saved us.

Lynne

You can do this just by paying the deposit on a credit card. The credit card company then become liable for the whole transaction even if you pay the rest with a suitcase full of cash.

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Jun 17, 2015
265
434
Portsmouth
Funster No
36,836
MH
Pilote G740
Exp
July 2015 plus 20 years of camping
I withdrew cash from my mortgage to pay for mine. Now I am just overpaying to keep the mortgage on track. But interest is only 2.79% so much cheaper than any bank loan.
 
Mar 23, 2012
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sleights
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c class
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1
Sounds like the best bet to use the mortgage to get the cash pay by cc then pay off with the cash then? unless some manufactrers deal. I became sceptical of finance as a student still paying for a motorbike 2 years after I got rid of it
 

haganap

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Dec 5, 2007
12,711
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planet earth
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Carthago C Tourer
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I'm an oldbie MH number 9
Yeah I'm not getting one. I was having a look round our local dealer the other day and there was a salesman trying the hard sell on a couple and mentioning finance and 10 year deals and low interest rates. It made me laugh and got me curious of how others do it.
The maximum you can get is 10 years in this country and the amount of years decreases over the age of the motorhome you choose to buy- for example the most you would get on an 09 van would be 7 years.



Finance on a new van will not be a personal loan....it is a full hire purchase agreement.....and different financial rules apply regarding early repayment.

You cannot get out of the finance early without paying all payments up front minus around 1.5%.

Interest is added at the beginning of the contract, divided by the number of repayments, and must be repaid in full even if the contract is fulfilled early.
We bought a used van for £28000 on full finance (no deposit) over 10 years.
6 months later we were in a position to repay in full........except to repay in full would have cost almost £39000.
£11000 interest over 6 months.....nice if you are a finance house

I know this happened to you John but it is not the case anymore since the FA got involved. They can only charge you the interest on the length of time you had the money. There are still some unscrupulous ones that try and attach "early repayment" charges but not in the manner you describe and not at the rate you describe.

I think that most people that are looking for finance are looking because they don't have the cash:)


Not true, some of us have a different way of thinking nowadays and here's how. 10 years ago we bought our first van for 20k, had money in the bank to pay outright but when that monies gone it's gone. What do you fall back on?
we borrowed pre-crash and at a very competetive rate- the result was that in the first 3 years of a 10 year personal loan we still had 20k in the bank but owed a lot less on our MH. We then changed it increased the monthly payment and got something better kept the repayment length the same (I just earned more) still had the original 20k in the bank and a van that was now worth 23k. another 3 years another change of van, kept the repayment term the same but was earning more and had a good value on the van we PXd but still had 20k in the bank (plus a few more through the normal investment(s))
kept that van until our 10 year term had ended.
result was we had the initial 20k in the bank plus now a van worth approx 27k so in assets 47 k.

I can not tell you the amount we paid back over the 10 years but it certainly was not in excess of the 27k that we had in the value of the van we then owned.
What I do know was that we always kept that 20k just in case of a rainy day which when it did rain we could dip in to but then replace.

result is we now have a 47k motorhome, but only a fraction of that in finance over a fraction of the years we started out under, better earnings meant we were able to still keep that 20k and throw a load more in at the deal

We work hard, now have no mortgage and aim towards financial security. We had fantastic 10 years of MHing and travel with the kids which we would not of been able to do without financing and always having the reassurance of some money in the bank for a rainy day.

We could of borrowed on the Mortgage for the last van at our interest rate which at the time was a massive 1% over base rate (y) but opted to knowingly and lovingly know that we own our house and if worse comes to worse and it all goes tits up we won't lose the house.

I hear so many bad stories of finance but, actually to some of us that had many working years ahead it makes perfect sense if you do it right, shop for the best deals and always remember the golden rule go with what you can afford and make sure you don't overstretch and always have a contingency plan but most of all know your market and don't buy new if you have any plans to change.

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jonandshell

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Dec 12, 2010
5,476
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Since 2006
Wise words Paul!
Not many of us working age motorhomers can dip into a healthy pension pot like the baby boomers!:reel:
 

GeebeeJaybee

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May 28, 2015
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When we traded up last autumn for our new(to us) adria. We paid the extra cost on a 0% credit card. It was a total of about 15K. The 0% was for 3 years so we just divided the cost by 36 and set up a standing order payment so it is paid off before interest starts to kick in. This was the cheapest way for us as we won't pay a penny in interest. The old one was already paid for.
 

Charlie

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May 16, 2015
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Im a newbie
Adding the cost of a motorhome can prove hideously expensive unless a large percentage of overpayment is made. The length of the mortgage is key..

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2

2657

Deleted User
Not true, some of us have a different way of thinking nowadays and here's how. 10 years ago we bought our first van for 20k, had money in the bank to pay outright but when that monies gone it's gone. What do you fall back on?
we borrowed pre-crash and at a very competetive rate- the result was that in the first 3 years of a 10 year personal loan we still had 20k in the bank but owed a lot less on our MH. We then changed it increased the monthly payment and got something better kept the repayment length the same (I just earned more) still had the original 20k in the bank and a van that was now worth 23k. another 3 years another change of van, kept the repayment term the same but was earning more and had a good value on the van we PXd but still had 20k in the bank (plus a few more through the normal investment(s))
kept that van until our 10 year term had ended.
result was we had the initial 20k in the bank plus now a van worth approx 27k so in assets 47 k.

I can not tell you the amount we paid back over the 10 years but it certainly was not in excess of the 27k that we had in the value of the van we then owned.
What I do know was that we always kept that 20k just in case of a rainy day which when it did rain we could dip in to but then replace.

result is we now have a 47k motorhome, but only a fraction of that in finance over a fraction of the years we started out under, better earnings meant we were able to still keep that 20k and throw a load more in at the deal

We work hard, now have no mortgage and aim towards financial security. We had fantastic 10 years of MHing and travel with the kids which we would not of been able to do without financing and always having the reassurance of some money in the bank for a rainy day.

We could of borrowed on the Mortgage for the last van at our interest rate which at the time was a massive 1% over base rate (y) but opted to knowingly and lovingly know that we own our house and if worse comes to worse and it all goes tits up we won't lose the house.

I hear so many bad stories of finance but, actually to some of us that had many working years ahead it makes perfect sense if you do it right, shop for the best deals and always remember the golden rule go with what you can afford and make sure you don't overstretch and always have a contingency plan but most of all know your market and don't buy new if you have any plans to change.

My first post said 'most' not 'all'

Please refer to my second post regarding the use of credit:
"Some of us might have to wait a long time though and there will always be other uses for the savings that crop up.

Agree about the mortgage though, I have always manipulated credit to my advantage by shopping around and being aware of the traps in 'interest free' offers. I have often used these offers even when the cash has been available, money better off in my bank than theirs, when we had a house it was re mortgaged several times before the current trend for short term fixed mortgages came into vogue.

How many businesses do not have credit facilities.

Use credit to your advantage not the credit providers:)"

I have recently bought a new to us and relatively expensive PVC, rather than use a big lump of savings in ISA's that are earning decent returns I have done exactly as you did and borrowed a large lump of the money as a low interest bank loan with no early payment penalties and used some cash ISA's earning next to nowt for the rest.

I repeat " use credit to your advantage not the credit providers' but as with any credit transaction be aware of the costs and penalties and make sure the repayments are affordable.
 

Lenny HB

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Oct 18, 2007
52,700
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On the coast in West Sussex
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Hymer B678 DL
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Since 2008 & many years tugging
Finance on a new van will not be a personal loan....it is a full hire purchase agreement.....and different financial rules apply regarding early repayment.

You cannot get out of the finance early without paying all payments up front minus around 1.5%.

Interest is added at the beginning of the contract, divided by the number of repayments, and must be repaid in full even if the contract is fulfilled early.
We bought a used van for £28000 on full finance (no deposit) over 10 years.
6 months later we were in a position to repay in full........except to repay in full would have cost almost £39000.
£11000 interest over 6 months.....nice if you are a finance house
That is illegal these days they can no longer work that scam.
 

Lenny HB

LIFE MEMBER
Oct 18, 2007
52,700
147,653
On the coast in West Sussex
Funster No
658
MH
Hymer B678 DL
Exp
Since 2008 & many years tugging
IWe don't borrow money for vehicles unless it is to our advantage, don't see the point in paying interest on a depreciating asset, a double whammy, would rather wait and save up if we don't have the cash.

The last car we bought we took advantage of finance as by taking finance, the finance company gave us a £1000 towards the car, so took the finance after the first payment cancelled the finance had to pay two months interest & with the payment came to £150, interest was tax deductible so I gave them £100 they gave me £1000 a good result.

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haganap

LIFE MEMBER
Dec 5, 2007
12,711
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planet earth
Funster No
974
MH
Carthago C Tourer
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I'm an oldbie MH number 9
When we traded up last autumn for our new(to us) adria. We paid the extra cost on a 0% credit card. It was a total of about 15K. The 0% was for 3 years so we just divided the cost by 36 and set up a standing order payment so it is paid off before interest starts to kick in. This was the cheapest way for us as we won't pay a penny in interest. The old one was already paid for.

That's clever I have done that with loans and tarted many times a 5 year loan of 10k completelyinterest free. For 5 years. .. there was a tarting scam on years ago whereby you could actually make money in interest free cards but sadly the balance transfer put paid to this
 
Aug 18, 2014
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Lorca,Murcia,Spain
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Transit PVC
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16 years since restarting
Finance on a new van will not be a personal loan....it is a full hire purchase agreement.....and different financial rules apply regarding early repayment.

You cannot get out of the finance early without paying all payments up front minus around 1.5%.

Interest is added at the beginning of the contract, divided by the number of repayments, and must be repaid in full even if the contract is fulfilled early.
We bought a used van for £28000 on full finance (no deposit) over 10 years.
6 months later we were in a position to repay in full........except to repay in full would have cost almost £39000.
£11000 interest over 6 months.....nice if you are a finance house
That's a spanish mortgage ! lol
 

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