To make your dream of owning a motorhome come true, you are likely to be looking for some form of finance.
Just as with any finance deal for the purchase of a vehicle, there is a host of factors to take into account – and by no means all of them depend on the price you pay by way of the interest charged.
Here are some of the considerations you may want to keep in mind.
Any lender has one objective in mind and that is some assurance that the credit extended is going to be recovered. The lender therefore assesses the risks, based on your circumstances and ability to repay any loan, mainly with reference to your credit record which is maintained by the UK’s main credit reference agencies – namely, Equifax, Experian and CallCredit.
Any evidence of your having defaulted on the repayment of past loans, encountered disputes with creditors or bad debt judgments adversely affects your credit score. There is no guarantee, therefore, that your application for further credit is going to be accepted.
Even if you have a poor credit score, however, there are specialist lenders who may still find a suitable motorhome finance deal on your behalf – and some motorhome dealers may have established working relationships with such lenders.
Scouring the market
When it comes to motorhome finance, no one size fits all – your borrowing depends not only on your personal circumstances, but also the size of the loan you need, the deposit you have, the value of the vehicle you want to buy, and the age of the motorhome.
For that reason, no one lender may meet every borrower’s requirements.
When looking for your motorhome finance deal, therefore, you might want to rely on specialist brokers experienced in scouring the whole of the market to identify the particular arrangement that is suitable for you – a personalised service, in other words, helps to find you the finance package to suit your particular circumstances, at a competitive and favourable rate of interest.
For your own security and peace of mind, the Financial Conduct Authority (FCA) insists that finance is provided only by properly authorised and regulated providers. These are brokers and lenders who appear on the official Financial Conduct Authority’s register – and you might want to ensure that your lender’s name therefore duly appears on the FCA register.
Where a finance provider already has established working relationships with a motorhome dealer, you may find that your application for funding is more than usually streamlined, simple and straight forward, requiring the minimum of documentation.
You may also find that the requirements for a deposit are more flexible – and typically in the region of 10% of the purchase price. Repayment terms may be up to a maximum of ten years.
The age of the vehicle you want to buy may also depend on your particular financial circumstances – although there may be a maximum age of the vehicle when it reaches the end of the finance deal.