Motorhome Finance To Suit You

Rates from 10.9% APR. Representative APR 19.9%

Motorhome Finance

Motorhome Finance.

The lure of the open road and staycation daydreams are inspiring people to buy a motorhome. On average, a new motorhome can set you back anywhere between £47,000 and £80,000. A second-hand motorhome will be cheaper, and is a popular option. The great news is motorhomes retain value spectacularly well, often as much as 70%.

Whether you purchase new or nearly new, buying a motorhome is a significant investment. Most of us require a line of credit, or finance. We’ve put together this handy guide outlining your options so you can compare motorhome finance. Both elements are essential steps on your journey to owning a motorhome.

Bear in mind the information below is not to be regarded as financial advice. If you require financial advice you should contact a financial adviser. They will be able to provide insight and suggestions specific to your circumstances. In the meantime, let’s explore finance options and get you on the road to your staycation destination.

Understanding Motorhome Finance.

The easiest way to differentiate a motorhome from, say, a campervan is a motorhome is a vehicle built on a bus or truck-type chassis. The sleeping and living quarters are self-contained and partitioned away from the driver’s cab.

Low-profile motorhomes are a basic type of motorhome. The average length measures 5.5 to 8 metres, and the width can be anything from 2.1 metres to 2.49 metres. If you know you’ll be exploring cosy country lanes, you need a slimline model and a width measurement lower than 2.25 metres.

Next up is the over-cab motorhome with the quaint and permanent fixture of a double bed over the driving cab. If head height and ladder navigation is an issue for the grown-ups, it still makes an ideal sleeping den for children. Bear in mind by its definition the over-cab motorhome will be tall (frequently over 3 metres high). Another expert tip is to look for contemporary models featuring engines of 150bhp and above.

Third and by no means last is the salubrious A class motorhome. The immediate differentiation is the chassis-cowl. The original body of the vehicle is replaced with purpose-built accommodation integrated with the driving cab. Apparently, the panoramic view takes some getting used to because of the illusion of additional width. Expert tips include opting for a “top-hung” mirror to assist smooth operation.

Now that you understand the principal types, let’s look at how you might pay for your staycation hotel on wheels.

Other Motorhome Costs Worth Noting.

One area to research is the average monthly costs of running and maintaining a motorhome, along with the efficacy of your motorhome model. Don’t forget to include road tax in your calculations, and bear in mind that motorhome road tax is calculated on the vehicle’s class and weight.

Another term that tends to confuse is APR, or annual percentage rate. This percentage refers to the annual rate of interest charged on the loan, as well as any other fees associated with your finance contract. Don’t confuse APR with a flat rate of interest as they are not the same.

HP Finance - Compare Motorhome Finance.

Hire Purchase (HP) finance allows you to put down a deposit (usually 10%) and spread the balance of the cost of the motorhome as monthly installments (plus interest). You will also pay an ‘option to purchase fee’. This is the last payment of your HP finance contract. After you’ve made this payment, the motorhome belongs to you.

Until then, the lender owns the motorhome. You also pay for insurance, maintenance and servicing. An advantage of HP finance is being able to pay off your balance in full. Most lenders allow a larger deposit to be put down, too. However, if you exit your contract before the mutually agreed time, you’ll be charged a fee. If you default on your monthly instalment the lender can repossess the motorhome.

PCP Finance - Compare Motorhome Finance.

Personal Contract Purchase (PCP) finance is the most complex finance option. Your PCP finance option allows you to pay off the value of the motorhome, often referred to as the Guaranteed Minimum Future Value (GMFV). The lender takes the value of the motorhome at the time you sign the contract, and subtracts it from the perceived future value of the motorhome at the end of your contract. You pay off the difference in monthly instalments, so the bulk of your debt is deferred until the end of your contract.

This means your monthly instalments are lower, but you have a hefty payment waiting for you at the end of your PCP contract. This optional payment is called an option to purchase payment. If you would like to own the motorhome, you will need to make this payment, Alternatively. you could consider the popular option: trade your motorhome in for another one and start a fresh PCP contract. Or you can simply return the motorhome.

PCP finance usually has strict service rules to maintain the value of the motorhome. There’s usually a monthly mileage cap and you will be charged by the mile if you exceed your limit. You will also be responsible for service and maintenance. Check the fine print as some lenders insist on using their preferred service provider which can prove expensive. Make sure you keep your motorhome in tip-top condition and you will escape additional charges.

Payment History
Amount You Owe
Length of Credit History
New Credit Opened
Type of Credit

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

Try Our Car Finance Calculator?

Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply



Instant Online Decision

The application process is quick and easy. You will receive a decision in just a few minutes. Our short form makes it easy to apply for a car loan at any time.



Search Any Reputable Dealer

Find the right car for you, within your budget, and close to your home at any reputable car dealer nationwide. We only work with reputable dealers



Sign & Collect Your New Car

Once we have dotted the I’s and crossed the T’s, we will handle the rest of the paperwork for you so it’s a nice and easy process. You’ll be on the road in no time!

Looking For First-class
Financial solutions?

Get a Free Quick Quote.

Applying with us takes less than 60 seconds. We could get you on the road in a matter of days!

Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

Is there anything to consider?


  • You will not own the car until you make the final payment.

  • You are also not permitted to sell or modify the vehicle in any manner without receiving permission first.

  • Third, monthly repayments are typically higher when compared to PCP and other car leasing plans.

  • Finally, it can be expensive if you only need a short-term arrangement

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?
Assessing my credit record?

You can also see your credit report by contacting a company such as Experian or Equifax before you make an application online. It costs about £2. You can see your credit report online and determine whether it is accurate and correct. If you spot any errors, you can request that a note is added to your report for lenders to see. If you are struggling to obtain even bad credit loans then it makes sense to check your credit report before you make any more applications.

It may be that there is an error that needs to be corrected first. Remember that every credit arrangement you apply for will record a search against your file, and too many of these may put lenders off as it suggests you could be over-extending yourself with finance. So before you apply for your benefits car loan, pause on any other finance applications for a period of time and focus on repaying every other credit arrangement that you have fully on time – including utilities, mobile phones, credit cards and so forth. This will put you in the best possible position for your application.

Why compare car finance on benefits?

When you compare motor finance on benefits, you can instantly see which lenders are likely to be prepared to lend to you. Use our website to compare motor finance on benefits and it makes the entire process quick and easy. Simply enter your basic information and we will instantly scour the market to see which lenders may be prepared to offer to you and on which terms. When you see the car dealership which is best for you, you can then apply for your loan quickly and without delay, by clicking through to the lender via our website.

What Information Do Lenders Ask For?

When you apply for your car loan, the lender will ask to see evidence of your benefits income. This could include jobseekers allowance, disability allowance, Universal Credit or another form of benefits income. If you also have another source of income such as a job or pension, the lender will also ask to see this information. They will then carry out a credit check as part of the application process.


Compare Motorhome Finance

Personal contract hire finance is an option that allows you to lease the motorhome. There is no option in this finance product to own the motorhome, making this an ideal choice for people keen to rent rather than buy. Personal contract hire finance also features the lowest monthly repayments. You may also have a monthly mileage cap imposed to maintain the motorhome’s value, but provided that you provide an accurate estimate and stick to it, you won’t be charged penalties.