Financing a Motorhome and Its Advantages

By Lauren Cordell

Motorhomes are one of the vehicles you’d want to be in when going out for a holiday. Also called caravans and RVs, these vehicles come in a variety of shapes and sizes. The long trips might be exhausting and can cause discomfort in your regular car rides. With a caravan, not only can it help you endure these long-distance journeys, but it also gives you a feel of being at home, allowing you to sit back as if you’re in your house. Motorhomes are a popular vehicle, with there being 225,000 registered motorhomes in the UK.

To experience using a motorhome, caravan, or RV, you have three options. You can buy one, and you may rent to try it first before buying it or financing it. Financing a caravan means taking a loan for the vehicle and paying it off monthly until you’ve paid the total sum of its initial price, with additional interest. It can be your alternative to buying one if you cannot currently afford the motorhome’s total price.

Here’s what you need to know about financing a motorhome, how to do it, and its advantages.

Things to Consider in Financing a Motorhome

Before you finance or even buy a motorhome in general, you need to think of factors that will help you in the process, such as selecting the motorhome and how much you’re willing to spend for it.

Seating Capacity

If you buy any vehicle with four or more wheels, the first thing you need to think of is the number of people in it. Will you use the motorhome with your family, a significant other, a pet, or yourself? This answer will narrow down the type of motorhome that you will get.

There are three types of motorhomes in the UK: the A-Class motorhome, the C-class motorhome, and the van conversions. A-class motorhomes are perfect for prominent families or a big group of people, C-class for five or lesser, and van conversions for three or less.

New or Used?

There are two types of motorhomes you can finance: a new or a used one. Depending on your choice, this will depend on the money you will end up spending. New RV’s are in the best condition, with updated technology, newer design setups for home amenities, and no wear and tear whatsoever. These would cost, of course, the price it is being sold for.

On the other hand, used motorhomes are old models, with used amenities, and might have potential wear and tear. It is cheaper and still works as well as it should.


The budget is one of the things you need to consider the most. A motorhome costs around tens of thousands of British pounds. If you have a fixed budget in mind, narrow it down to the models you can afford.

Do not opt for a motorhome with monthly fees you cannot manage to earn in a month unless the offer allows you to make advanced payments. Be practical, as failure to pay the motorhome will cause the lender to take the vehicle back or take some of your assets to compensate for the low payment.

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Credit Score

A credit score is another essential factor to think of since it will determine if you are even capable of applying for a loan. What you need to secure is that your credit score should be high enough for you to finance the motorhome you want. You would need your credit score rating to be good, so you can get the best offers the lender has.

Having a fair credit score could give you loans, but you won’t get the best. If you want to have better deals in motorhome financing, you need to improve your credit score.

How to Finance a Motorhome

There are several steps in financing a motorhome. These may vary in order depending on your situation, but these are the general steps nonetheless.

Look for a lender and your preferred motorhome

The first step, in general, is to plan. Research on the lenders that you can make a deal with and the motorhomes they offer to loan their clients. Several institutions can serve as your lenders. These are your bank, credit unions, online lenders, or companies that sell motorhomes. Look upon the vehicles they have, their RV financing rates, as well as the credit score needed to apply for the loan.

Select your type of loan

Once you have chosen your lender, inquire with them and ask for your available options, given that you have disclosed needed information, especially your credit score. Another purpose of having a credit score is to determine your type of loan.

If your credit score is good to excellent, you can either select a secured loan or an unsecured loan. Secured loans are those that are backed by collateral, which, in this case, is the motorhome, and perhaps additional assets depending on the lender.

Unsecured loans don’t need collateral, but failure to pay back will result in the lowering of your credit score. Most of the time, only those with a good or excellent credit score can select unsecured loans. Otherwise, you automatically get a secured loan.

Negotiate and pay

After deciding on an offer, it’s time for you to negotiate. Approach your lender and begin the deal. If your lender is from a less strict institution, you can attempt to haggle to lower the price.

When the deal is set, you may begin paying for the required initial fees, such as a down payment. After that, the motorhome is pretty much yours, and you’re now responsible for paying for it monthly.

The Advantages of Financing a Motorhome

While loans don’t exactly sound like an excellent offer to people, given that there are also additional interest rates, this option is suitable for those who cannot buy one.

Here are some of the pros when financing a motorhome.

You keep financial stability

Unless you already have the fortune (which you can simply buy the motorhome), saving tens of thousands to buy the model you want can be challenging. Buying it all at once might harm your daily spendings. With financing, you can slowly pay the motorhome back, and as long as you have enough, you can pay the monthly fee and, at the same time, stay well funded for your expenses.

Lower down payment

When buying an RV, chances are you can pay a particular amount of money beforehand to secure your purchase. However, this downpayment is most likely still quite expensive. The downpayment you need to pay is much smaller through financing, given that you are to pay monthly. The downpayment for the motorhome is typically 10%.


Money is perhaps the most critical asset in acquiring and owning a motorhome. It is best to properly budget your money and be open to options that will make the most of it.

About the Author

Lauren Cordell is an avid travel junkie who loves the outdoors. She has a fascination for traveling to distant places and loves motorhomes as a means of traveling and camping. When not outdoors, she writes about her experiences.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.


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