How to Finance a Motorhome in the UK: A Handy Guide

Owning a motorhome opens the door to adventure, freedom and the chance to explore the UK (and beyond) at your own pace. But with price tags that can easily stretch into the tens of thousands, many buyers look for ways to spread the cost. 

That’s where finance options come in. Whether you’re after a brand-new model with all the bells and whistles, or a well-looked-after used vehicle, there are several routes you can take to get behind the wheel without needing to pay upfront in full. 

What Does Financing a Motorhome Mean? 

In simple terms, motorhome finance allows you to break the cost down into manageable monthly payments over an agreed period. Just like buying a car on finance, there are a few different types of agreements available. The right one for you depends on how long you want to keep the vehicle, how much you can afford monthly, and whether you want to own the motorhome outright at the end of the term. 

The Most Common Motorhome Finance Options 

Let’s break down the main types of motorhome finance available in the UK: 

1. Hire Purchase (HP) 

Hire Purchase is a straightforward and popular way to finance a motorhome. You’ll typically pay a deposit – often around 10% of the motorhome’s value – and then pay the remaining balance, plus interest, in fixed monthly instalments over a set term (usually between 1 and 5 years). At the end of the agreement, once all payments have been made, you own the motorhome outright. This option suits people who want a clear path to ownership without any surprises. 

2. Personal Contract Purchase (PCP) 

Personal Contract Purchase works a little differently. You’ll still pay a deposit and then make monthly payments, but those payments only cover the depreciation of the vehicle – not its full value. 

At the end of the term, you have three choices: hand the motorhome back with nothing more to pay (as long as it's in good condition and within the mileage limit), use any remaining value as a deposit on a new agreement, or pay a lump sum (known as the balloon payment) to buy the motorhome outright. PCP offers flexibility but might not be available on all motorhome models, particularly older ones. 

3. Personal Loan 

Some people prefer to take out an unsecured personal loan from a bank or building society to pay for a motorhome. This way, you own the vehicle outright from the beginning. You repay the loan to the lender in monthly instalments, with interest, over an agreed term. This option can be useful if you want full ownership from day one and potentially more flexible terms than some dealer finance agreements. 

What to Think About Before Signing Up 

Getting finance for a motorhome is a big commitment, so it’s worth taking a bit of time to weigh up your options. Here are a few things to consider before signing on the dotted line: 

• Monthly Budget: Make sure the repayments are affordable alongside your other monthly expenses. Remember to factor in running costs like fuel, maintenance, and insurance. 

• Deposit Amount: A bigger deposit can lower your monthly payments, but don't overstretch yourself. 

• Length of Term: Longer terms mean smaller monthly payments but more interest over time. If you can manage a shorter term, you’ll likely pay less overall. 

• Credit History: Your credit score will affect the interest rate you’re offered. It might be worth checking your score beforehand to see where you stand. 

• Ownership Preferences: Think about whether you want to own the motorhome at the end of the finance period or if you’d prefer to upgrade every few years. 

Can You Finance a Used Motorhome? 

Yes, financing isn’t just for new models. Many lenders and dealers offer finance options on used motorhomes as well. Just keep in mind that there might be age and mileage limits, and the interest rates could be slightly higher. It’s always wise to get the vehicle checked over and ask about any warranties that might be included. 

Is a Deposit Always Required? 

In most cases, yes – although some dealers and lenders may offer zero-deposit options. Paying a deposit upfront can make your monthly repayments more manageable and might help reduce the amount of interest you pay overall. 

Should You Get Pre-Approved? 

Getting pre-approved for finance before you start shopping gives you a clear idea of your budget and what you can afford. It also means you can focus on finding the right motorhome rather than worrying about how you’ll pay for it. 

Final Thoughts 

Financing a motorhome gives more people the chance to enjoy life on the road without needing to pay a large lump sum upfront. With the right finance option, you can spread the cost over time, keep things manageable, and get on with planning your next adventure. Whether you’re buying new or used, just take the time to compare your options, read the terms carefully, and make sure the deal suits your lifestyle and budget. Plus don't forget the all-important motorhome insurance! 

‍