If you are considering purchasing either a new or used motorhome or campervan then you tend to have two ways of funding the purchase – either you use your own savings to buy the vehicle outright or you borrow all or part of the funds needed to buy the vehicle from the likes of a bank or finance company.

Savings

If you use your savings to fund the whole purchase price of a motorhome or campervan you will obviously not have any monthly finance repayments to pay but you may be using up all or a significant amount of your savings that you may need at some point in the future for some other purpose. At the time of writing, interest rates on the likes of instant access savings accounts are extremely low and, unless you are able to arrange the likes of a 0% interest rate loan, you are likely to be charged a higher rate of interest on your borrowing than you would obtain in an instant access savings account.

Loan

With regard to the finance option, you may be able to borrow 100% of the purchase price of the motorhome and that may appeal to those people who are not in the fortunate position of having savings. For those that have savings, they may wish to use some of those savings as a deposit on the purchase price of the motorhome. This may mean that they are able to borrow the funds at a lower rate than someone who is not able to put down a deposit and there repayments would be lower than if they borrowed 100% of the purchase price of a motorhome or campervan.

There are numerous providers of finance for motorhomes and campervans as a search on the Internet will reveal so it may pay you to shop around. There will no doubt be a number of people who approach their bank but you may find that some businesses that sell motorhomes can help you apply for in-house finance or you could contact a lender direct. You may be able to borrow the monies from 1 to 10 years at a fixed rate of interest. The amount you could borrow may vary between lenders but could be from say £1,000 to £300,000.

You could also get in touch with a loan broker who may be able to help you source suitable motorhome finance from a panel of lenders.