What Is the Best Way to Finance a Motorhome?

Do you want to buy a motorhome but are worried about how you are going to afford one?

Offering a cost-effective and fun way to travel and take family vacations, there are actually a lot more ways to finance a motorhome than you might think.

Whether you have some money saved up or you need to borrow the full amount, find out all the best ways to finance a motorhome below.

What are the different ways to finance a motorhome?

Take out a bank loan

If you have a good credit rating and credit score, one way to finance a motorhome is by applying for a bank loan. As with most financial providers, your bank will only give out secured loans, which means that the interest should be fairly low.

If you choose to go down the bank loan route, make sure you can comfortably afford the repayments before you commit to a contract.

Borrow from a family member

If you are concerned about being able to afford the interest rates on a bank loan, you may want to consider asking a family member to lend you the money to buy a motorhome.

Although this is not an option for everyone, if you do know someone who is willing to lend you the money, this can be a lot cheaper than borrowing from elsewhere. However, make sure you are completely in agreement about when you need to pay back the money to avoid any upset or arguments.

Apply for auto finance online

To find the best deals on auto finance for your motorhome, there are websites such as https://www.autofinanceonline.co.uk/ that collate quotes from all the biggest lenders in the industry and provide you with the most affordable prices.

These websites are a good choice for people who don’t have the best credit ratings, as they accept as many as 90% of all applicants. They can also take care of all the paperwork for you and even contact your chosen dealership to seal the deal.

Use your savings

If you have savings and don’t have to borrow money to pay for a motorhome, this is undoubtedly the best financing option.

That being said, you shouldn’t use all your savings on one purchase, as you should always make sure you have emergency funds available in case you need them.

Release equity from your home

Although not the best option for everyone, if you own your home, you might want to consider releasing some equity to pay for your new motorhome.

One option is a lifetime mortgage that allows you to release equity in your home that you don’t need to pay back until you sell the property or until the policyholder dies.  

Rent rather than buy

If you are still struggling to afford to buy a brand-new motorhome and you can’t get the credit you need, why not rent one instead? This is a good option for people who don’t intend to use their motorhome that often, and you can find some great deals on motorhome rentals online.