How caravan finance works
Caravans and motorhomes are usually bought with hire purchase, a personal loan or sometimes a PCP-style deal. With a loan or HP, you repay the price minus your deposit in equal monthly payments that include interest.
Because they cost more than most cars, caravan and motorhome finance is often spread over a longer term. That lowers each payment but increases the interest you pay.
Worked example
A £40,000 motorhome with an £8,000 deposit means borrowing £32,000. At 8% over 84 months (7 years), the monthly payment is £498.76, £41,895.74 in total.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Running costs to budget for
Remember insurance, storage, servicing and site fees. Motorhomes also need road tax and an MOT once they're old enough.
Inputs for the caravan finance calculator
Caravan or motorhome price
The price including any extras you're financing.
Deposit
What you're paying upfront, including any part-exchange.
Interest rate (per year)
The annual interest rate on your finance. The rate shown is only an example, so enter the rate from your quote.
Term
The length of the agreement in months.
CALCULATOR QUESTIONS
Caravan finance calculator questions
How long can caravan finance last?
Terms vary by lender. Caravan and motorhome finance is often longer than car finance because the amounts are larger.
Is HP or a personal loan better for a caravan?
With a personal loan you own it straight away; with HP you own it after the last payment. Compare the APR and total cost.
Does a bigger deposit help?
Yes. You borrow less, so the monthly payment and total interest both fall.
Does this work for PCP deals?
No. PCP defers part of the price to an optional final payment, which this calculator doesn't include.