6 Tips for Financing a New Motorhome

By admin / January 8, 2020

If you have been looking into the possibility of buying a motorhome, you’ll know it is a venture that requires plenty of capital. It’s a barrier that often stops people from going any further with their dreams of owning a motorhome.

You don’t have to suffer the same fate. With the following six tips, you will learn how it is possible to finance a new motorhome:

1. Use Your Pension

If you have a pension or savings, this could be an instant gateway to owning a new motorhome. While receiving a lump sum payment from your pension has its advantages and disadvantages, it can provide you with the cash needed immediately.

2. Downsize Your Home

Don’t have a pension or savings to cover the cost of a motorhome? Well downsizing is an alternative method for raising the funds needed to make the purchase.

If you are planning extensive travelling in the motorhome, it makes sense to move into a smaller house. By doing this, you can have plenty of spare money from the sale of your home. In addition, there’s the option of selling any other vehicle you own and replacing it with the motorhome.

3. Receive a Personal Loan

A personal loan is arguably the best way of raising the cash without needing any prior funds or assets. One of the reasons is due to its simplicity. You apply for the amount of money needed, and this will usually be provided within a couple of days if the loan is approved.

The approval process is often the point that catches people out, particularly if they have a poor credit rating. However, if you choose a specialist lender company such as Auto Finance Online, even a bad credit history won’t necessarily get in the way of acquiring a loan.

4. Hire Purchase

A similar alternative to a loan is hire purchase. Dealers will usually offer this option when you’re making your motorhome purchase. While it has comparable aspects to a loan — including the need to make monthly payments and the fact you can receive the motorhome immediately — there are notable differences.

For instance, consider hire purchase as being akin to a mortgage. You don’t actually own the motorhome until you’ve made the final payment on the agreed deal. These deals often last five years or longer, and a missed payment could result in your motorhome being repossessed by the finance company.

5. Boost Your Credit Score

If you want to go down the loan or hire purchase route, it pays to have a solid credit score. The better your credit rating is, the less interest you’ll have to pay. There are numerous ways to improve your credit score, including:

  • Making regular bill payments on time
  • Building up your credit history
  • Keeping credit accounts to a minimum
  • Protecting against identity theft

6. Shop Around

Instead of simply settling on the first dealership you come across, search around and see if you can find a better deal elsewhere. The same also goes for the motorhome itself. If you cut down on features you deem unnecessary, this could save thousands from your motorhome purchase.

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