Motorhomes are a great way to explore the country and take your family on a dream trip, but they don’t necessarily come cheap. However, there are plenty of different ways you can finance your motorhome, so it might not be the distant dream you thought it was.
The right motorhome is the perfect way to holiday and travel in luxury, so it’s well worth doing some research on your financing options. A new motorhome is a big investment, so you want to make sure you’re not paying over the odds by picking the wrong finance option.
Check out these 4 tips, from No Credit Campers, for paying for your new motorhome.
Understand Your Budget
A great way to maximize your purchasing power is to understand your budget. The better you can plan out your finances, the better your chance of finding the finance option that will best suit your needs.
If you understand your budget well, then you can ensure you’re not over-stretching yourself, but that you’re able to get the standard of motorhome you want. Budgeting isn’t the most exciting thing in the world, but it can make a big difference when it comes to purchasing high-value items like a motorhome.
Don’t Rush into a Decision
Remember, there are plenty of options out there, so there’s no need to rush into buying the first motorhome you see. Make sure you’ve checked out all the details on the vehicle you’re looking to purchase and that you’re making a wise purchase.
It’s easy to think you’ve spotted the motorhome you’ve always dreamed of and feel like you’re under pressure to do the deal quickly, but you don’t need to rush. Take your time and get things right, because there’s always another motorhome out there.
Buying your motorhome outright gives you the benefits of owning the vehicle and being able to do with it what you want. However, it does take a significant upfront investment to purchase your motor home outright.
To help you with your purchase, it’s worth looking at what finance options you have available to you on sites like Auto Finance Online. This option allows you to own your own vehicle and spread your repayments out over a number of years while paying a competitive rate.
An alternative way to finance your motorhome is hire purchase. In this instance, you pay an upfront deposit, normally about 10% of the value of the motorhome, and pay the rest off in monthly installments. The big difference here is that you won’t own the motorhome until you have paid the last payment, so you have more limitations as to what you can do with the vehicle.
People like the hire purchase option because it offers flexibility. You need a relatively low initial investment, and you can spread the remaining payments out over a longer period (normally between 12 and 60 months).
Of course, you’ve got to balance this flexibility out with the fact that you won’t own the vehicle and the level of interest you will have to pay on top of the value of the vehicle.