Financing a motorhome

[BusyBuilder]

I've considered swapping our 2012 Hymer B544 for a newer moho/pvc. I think ours is worth about £40k (going by others for sale) and if we buy a newer PVC at say £70k, I'm not sure what the p/x would be against a used or nearly new van. But I'm guessing we may need about £40k ?

Whats the best way of financing this, we are both late 60's with a reasonable pension income.

 

[meanders]

We were about £20 k light last time. The offer from the dealer through Black Horse was better than I could get from the bank or anywhere else.

 

[BusyBuilder]

Was there a limit on how long you could take it over ?

 

[nicholsong]

I you have equity in a house you could take out a mortgage/second mortgage. No early repayment charges.

 

[Burge]

We're in late 60s have used Black Horse on last 2 vans, just had over 12mth deal so not borrowed a great amount.

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[The Wino]

I

I've considered swapping our 2012 Hymer B544 for a newer moho/pvc. I think ours is worth about £40k (going by others for sale) and if we buy a newer PVC at say £70k, I'm not sure what the p/x would be against a used or nearly new van. But I'm guessing we may need about £40k ?

Whats the best way of financing this, we are both late 60's with a reasonable pension income.

I think you ought to be thinking about maximising what you get for your existing MH your figures actually suggest you might need £30k if you get the full value of your MH rather than px it.
I never borrow on vehicles but we're in a totally different situation quite a lot in savings and cash very little in pensions. I think the thing I'd steer clear of is a PCP I have a friend who is a retired car dealer he says if you are looking at finance and PCP in particular just put all the figures on a piece of paper and leave it overnight. Look at it in the morning and think about the total you are going to pay and decide if you want it that much!

 

[Burge]

We have savings too, but what the loan costs us over 12mths will make more on interest on our savings so leaving savings alone .

 

[meanders]

Was there a limit on how long you could take it over ?

I don't remember precisely but I think 7 years was offered.

 

[Fulham Dave]

Not sure how long you are looking to borrow, but if between 18 to 24 months, you could obtain 0% interest cards and use them?

If you apply individually rather than jointly to the same credit card company, you should be able to both get a card with them. Most initial credit limits are circa £3,500, meaning each credit card would offer you £7,000 credit.

If you speak with the dealer, you may be able to strike a deal to reduce the charges for using a credit card. We did this when we bought our van 4 years ago using 0% to finance £120,000. We came to an arrangement with the dealer regarding the credit card, although I know fees have increased in recent years and come dealers may not be willing to assist.

FYI, we have also just obtained 4 cards to pay for our 9 month trip to Asia / Oceania. We pay off the minimum amount vis DD each month and buy Premium Bonds monthly with the surplus money. When the 0% offer is about to expire, we redeem the Premium Bonds and pay the balance off the card.

 

[The Wino]

We have savings too, but what the loan costs us over 12mths will make more on interest on our savings so leaving savings alone .

If you can do that it's a smart move. The only thing id be wary of is the tax on savings interest and that finance percentages on loans are often quoted at flat rate the apr to compare to savings interest is generally double the flat rate. You probably know that and have done the sums but what looks like a no brainer at a flat rate of interest on a loan at 3% and savings at 4.5% can be better to spend the cash.

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[BusyBuilder]

Thanks, I won't touch PCP with a barge pole

 

[VXman]

I you have equity in a house you could take out a mortgage/second mortgage. No early repayment charges.

Yes, if you are a house owner this is the route I'd take. You can actually do I interest only 'loans' which effectively means you are giving a bit of your house to the loan company. Some are happy to leave the repayment unending taking their capital back when you die. Obviously this is not necessarily the cheapest method as you might be paying interest for 30 years but certainly loans on your house equity will be the cheapest option.

 

[Minxy]

We have savings too, but what the loan costs us over 12mths will make more on interest on our savings so leaving savings alone .

You must have a very good savings interest rate then as loans tend to have a higher rate of interest than savings.

 

[Minxy]

IMV releasing the equity in your property is likely to be the cheapest by mortgaging/re-mortgaging it (assuming no silly charges for arranging it). When we bought our rental bungalow back in 2006 we just increased the mortgage on our home at a rate of 0.74% above base. We didn't get a 'Buy to let' mortgage as at the time we were hoping to sell our home and move to the new bungalow but that didn't work out so it's remained a rental property.