Motorhome purchase and how to finance it

RAS

Jan 19, 2021
6
9
Worcestershire
Funster No
78,870
MH
VW Campervan
Exp
Since 2013
Dear members,

As a VW Campervan owner looking to upgrade to a motorhome, could I please ask and I am not looking for any personal details.

Purely for my benefit and hopefully this is not taken as being too intrusive or rude. I am looking to understand how I go about funding such a large investment as a motorhome.
Could I please ask the members as to how you have financed their motorhome purchase and whether you would do the same again.
If it was via financial loans or lease purchase then which finance organisation did you use, rate did you get?
Was it via the MH dealer or done separately?
The interest rates quoted by some brokers is as high as 8.9% which puts a lot on a loan over 10 years.
If you would prefer to share information but not on a general thread then please do make contact on a private conversation.





Re
 
Oct 29, 2019
156
714
Cornwall
Funster No
66,425
MH
VW LWB Crafter
Exp
Since 2009
So I don't suppose you can blame them for pushing finance deals.
My boss struggled a few years back buying his Range Rover as he wanted to pay upfront, they were reluctant and pushed for finance even though he had the money ready to transfer!

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Jul 13, 2020
321
1,066
Leicester
Funster No
72,995
MH
Autocruise Gleneagle
Exp
Newbie. Motor home experience began on 1/8/2020.
We came to 'motor homing' late and both of us have had problems in our lives along the way before we we met. It doesn't help to set you up financially but you have to work with what you've got.

Nationwide currently own the biggest part of our motor home, but if we waited until we could afford cash then at least one of us would be dead (me). And we would like to experience at least part of our 'dream' together before old age or death gets in the way.

I would say get a plan together as to how you can afford it reasonably (within your means), without being ripped off with interest rates. Make sure there is some 'slack' within your calculations to allow for unforeseen events. Or have a plan B and C 'what if scenario' just in case.

Having a small (ish) mortgage with our Building Society provided a loan with a very low interest rate. We will still have to balance the books at some point in the medium term but I am sure (as sure as anyone can be), we'll be ok and will have some memories to look back on.

On other threads recently I have read terms such as "shrouds don't have pockets", "you cannot take it with you", "enjoy your years as you don't know what is around the corner", "you don't know how long you have left".

Don't be put off by the negativity. Be sensible and objective and don't let your heart make the financial decisions without at least checking in with the head.

Good luck
 
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Apr 12, 2012
785
3,559
N/E Lincs
Funster No
20,518
MH
Hiring this year
Exp
as above
We could have bought our motorhome with our savings but we wanted to use them for other plans so we took out a loan via the bank.
They gave us a very good interest rate because it was classed as a leisure loan. I wish we had known that years ago.
 
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Mar 23, 2012
5,441
16,111
sleights
Funster No
20,245
MH
c class
Exp
1
If you have enough equity in your home and your existing mortgage is a capital repayment one then you ma6 be able to either do a top up loan or remortgage your home. Whether it’s right for you depends on your ages length of existing mortgage and obviously the new interest rate. Speak to your mortgage lender or broker
And don't forget any arrangement fees it's the way they make a lot of their money these days

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Simon-Alan Kerr

Bailey,Swift,Rollerteam,Knaus,Weinsberg & Malibu!
Mar 18, 2016
750
3,053
Devon
Funster No
42,036
MH
A Class Coachbuilt
Exp
25 Years
Lots of ways now that customers fund motorhomes. Equity release, pension pot lump sums, HP against the vehicle, loan from the bank.
Most dealers will use Blackhorse to fund which is set circa 8.6% APR. That may sound high but over 10 years it actually isn't. I get a lot of people saying they can get say 2.8% from their bank but then it ends up being a max term of 5 years. So you get less APR% but a higher monthly payment as the term is so much lower.
Send me a PM if you want. I am also happy to look over any figures on a deal you have been offered to see if I can advise/help.

Simon
 
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Mar 23, 2012
5,441
16,111
sleights
Funster No
20,245
MH
c class
Exp
1
Lots of ways now that customers fund motorhomes. Equity release, pension pot lump sums, HP against the vehicle, loan from the bank.
Most dealers will use Blackhorse to fund which is set circa 8.6% APR. That may sound high but over 10 years it actually isn't. I get a lot of people saying they can get say 2.8% from their bank but then it ends up being a max term of 5 years. So you get less APR% but a higher monthly payment as the term is so much lower.
Send me a PM if you want. I am also happy to look over any figures on a deal you have been offered to see if I can advise/help.

Simon
I just put that in a loan calculator over 10years the interest comes to half the cost more or less it's just a bit less so on a 50k loan it's 23.5k interest.
I would go for a cheaper motorhome on the lower interest rate finance and a shorter term. Quicker paid off and on the longer finance theres a good chance you will be paying it off long after it's gone
 
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Jul 13, 2020
321
1,066
Leicester
Funster No
72,995
MH
Autocruise Gleneagle
Exp
Newbie. Motor home experience began on 1/8/2020.
I just put that in a loan calculator over 10years the interest comes to half the cost more or less it's just a bit less so on a 50k loan it's 23.5k interest.
I would go for a cheaper motorhome on the lower interest rate finance and a shorter term. Quicker paid off and on the longer finance theres a good chance you will be paying it off long after it's gone
Agree. We are not paying much more than the initial loan to pay it back.

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