Motorhome Finance

[Jo662]

I have just been looking at Motorhomes for sale,as you do, and noticed on one particular dealers website the finance packages they offer. Surely people do not take these finance deals on?
Example:

Purchase Price. Deposit. Finance Required. Monthly Payments. Total Amount Payable

£96,390.00

£2,000.00

£94,390.00

£1,243.97

£149,276.40

So after you have finished paying for this particular motorhome the interest is nearly £53,000.

 

[Beltie]

I would guess if they have a p/x they would have a substantially bigger deposit than £2k, but even so....!

Camper UK are currently advertising a new Laika at approx £1750 a month over 10 years at 9.9%. Like you, I can't imagine why anyone would sign up to that, but no doubt they do.

 

[Steve and Denise]

I have just been looking at Motorhomes for sale,as you do, and noticed on one particular dealers website the finance packages they offer. Surely people do not take these finance deals on?
Example:

Purchase Price. Deposit. Finance Required. Monthly Payments. Total Amount Payable

£96,390.00

£2,000.00

£94,390.00

£1,243.97

£149,276.40

So after you have finished paying for this particular motorhome the interest is nearly £53,000.

Anyone taking a agreement like that would be completely dim and should not be allowed to be in charge of their own finance

 

[Lenny HB]

The younger generation who have to have it now, they are only interested in what the monthly payments are.
Pleased to say we brought our kids up propper like us they prefer to save for something they want.

 

[Coastal Cruiser.]

This one is slightly less affordable on monthly payments

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[sonny]

Blast I hit the pay now button

 

[haganap]

People have and they do.
Spoke to a sales rep at Go European when I was laughing at the figures, he said over 75pc of sales are high end finance.

Even he was amazed.

 

[bilM]

Any one that gets a motorhome and needs finance needs there head examined.

 

[62272]

They must be quite naive. The cost of keeping a motorhome, and the cost of touring is not cheap, you’d be really peeved off after the first couple of instalments. A recipe for disaster.

 

[WillysMB]

££££ oh hell if you are financing a MH on the never never

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[Ridgeway]

See this is where “can a buy it at £1 a week” gets you

 

[Tonks]

£1750 a month over 10 years at 9.9%.

 

[Beltie]

Exactly, interest charges a mere £74k.

 

[DerryW]

It's not just the purchasing of the MH, time you add in maintenance, RFL, MoT, before you even put a drop of fuel in the tank.

 

[PaddyM]

O for the days of ISAs , non property secured endowments , saving , investment portfolios with bona fide IFAs and paying off your mortgage early with non penalising mortgage agreements .
O and did i mention SAVING

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[MR BLO]

Any one that gets a motorhome and needs finance needs there head examined.

Really? Maybe people like me who have taken advantage of some sort of finance in order to buy a van actually provide a service for people like you to sneer down their long self important noses at.
Wasn’t there a thread a few days back about you only live once and taking a few risks etc …...

 

[Coolcats]

Really? Maybe people like me who have taken advantage of some sort of finance in order to buy a van actually provide a service for people like you to sneer down their long self important noses at.
Wasn’t there a thread a few days back about you only live once and taking a few risks etc …...

Don’t worry there are many people on the site who whilst may have purchased thier van have a car on PCP contracts so never ever own a car.

People take up finance for all different reasons there is no shame in it it’s what fits a personal lifestyle or preferences. The only truly financially stable people are those with nothing and those who have mega wealth everyone else is financially unstable lol ( I’m sure I will get flamed for making that comment but it’s what a guy who worked/owned a finance company stated.

 

[PP Bear]

Don’t worry there are many people on the site who whilst may have purchased thier van have a car on PCP contracts so never ever own a car.

People take up finance for all different reasons there is no shame in it it’s what fits a personal lifestyle or preferences. The only truly financially stable people are those with nothing and those who have mega wealth everyone else is financially unstable lol ( I’m sure I will get flamed for making that comment but it’s what a guy who worked/owned a finance company stated.

Stone him I say……

 

[Rosemary1]

Have you ever sat down and worked out how much interest you have paid on your mortgage. I did when we finished paying it off - very scary - hubby said just think of it as rent and it won’t hurt as much!

 

[Coolcats]

Have you ever sat down and worked out how much interest you have paid on your mortgage. I did when we finished paying it off - very scary - hubby said just think of it as rent and it won’t hurt as much!

The interest on our mortgage was probably equal to the purchase price of our house, when interest rates came down house prices went up which meant an individual still had to spend shedloads of cash over and a live what the house is worth.

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[Reallyretired]

Hate the idea if PCP so have bought my last two cars on a bank loan, much cheaper than dealers finance

 

[Fulham Dave]

We bought / financed our van by using zero percent credit cards (13 of them if I recall correctly). The shortest term was 20 months, longest 27 . Just paid the minimum each month by DD and cleared when the free/zero period was finished

 

[EuroTrotters]

My brother purchased a caravan from Glossop caravans 15 years ago. Caravan was £15,000, after finance it was over £30k. Even though I told him to get a back loan.

I think some kind of regulations came in after he signed .

 

[VXman]

The only truly financially stable people are those with nothing and those who have mega wealth everyone else is financially unstable lol ( I’m sure I will get flamed for making that comment but it’s what a guy who worked/owned a finance company stated.

Can't agree. I think we are financially stable but not mega wealthy. House paid for, no loans or debts. Final salary pension that will increase in line with inflation until I die plus a good sizeable chunk of money in savings/investments. We can live comfort and enjoy 4 months holidaying a year.

Have you ever sat down and worked out how much interest you have paid on your mortgage. I did when we finished paying it off - very scary - hubby said just think of it as rent and it won’t hurt as much!

Buying a house is slightly different. It is pretty much guaranteed to rise in value over the time of the mortgage. You will probably cover the purchase price and the interest over time.

A motorhome on the other hand will just decrease in value and be with less then half of its purchase price after 10 years.

 

[philann]

When we met with our financial advisor we brought up that we
May have to replace a car in a few years and that would be a fairly large outgoing. His view was that you wouldn’t use your capital but go down the PCP route with a known monthly payment that was affordable from recurrent pension income. Not for everyone but we have reasonable private pensions.

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[Coolcats]

Can't agree. I think we are financially stable but not mega wealthy. House paid for, no loans or debts. Final salary pension that will increase in line with inflation until I die plus a good sizeable chunk of money in savings/investments. We can live comfort and enjoy 4 months holidaying a year.

Good for you, but it is surprising on how close we all are to financial unbalance should the unthinkable happen.

 

[Captain Pizza]

We remortgaged (in March 22) to get the money for ours. Because the rate went down from 2.5% to 1.7% on the outstanding £120k mortgage balance too, the extra £60,000 for the van is only costing us £200 a month net. Less than a Ford Fiesta on PCP!

Mortgage does now go until I'm 80 though!! (But 3 x DB pensions coming soon so that's fine)

 

[The Wino]

I think if people take on the finance knowing the costs it's up to them. But paying over £1000 a month out of season when we're not using it a lot would really annoy me. I do think anyone buying their first MH would have to be a bit brave/ determined/foolish to tie into a finance deal on a fixed term like that unless they've rented a few times. It would be hard to think of the circumstances where someone would have enough income on a regular basis to cover the repayment costs but not have significant savings for a decent deposit

 

[Guigsy]

Compared to a lot of big purchases... it's not that bad a deal.

It wasn't that long ago that a car was worth half its value after 3 years. So you'd be losing far more than the amount to interest just on depreciation. At least motorhomes hold their value pretty well. Costing 10% per year isn't so bad.

 

[Minxy]

Any one that gets a motorhome and needs finance needs there head examined.

For some it's the only way they can afford one however the best way is NOT to take the dealer finance deal as they are always much more expensive than getting them from a bank/building society. The ones form a dealer are usually tied to the MH which can cause all sorts of issues and extra costs if you want to change it before the end of the loan term.

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