If you want to make it easier to buy the camper you’ve always wanted, campervan finance is a tempting solution to bring it within your reach, so you can start enjoying it straight away.
In our experience, between 35 to 50 percent of our customers buy their campervan with finance, so it’s not unusual, but we think you’ll find it useful if we answer some of the questions we usually get asked. There is some useful information you might want to know first.
Campervan Finance – Where To Start
Before you start choosing a campervan and set your heart on it, if you are going to need some finance to pay for it, it’s important to get this sorted first. If you don’t, and you have any issues arranging finance at a later stage, you’ll be wasting your time and have your campervan dreams come to an end. You need to know how much budget you have available.
Get an idea of the amount you want to spend, then if you need campervan finance, work out how much you need and check you can borrow enough. There are several ways to finance your dream campervan, as we explain below.
Good To Know
If you finance a vehicle with a loan or hire purchase, it will still be registered in your name, although you won’t fully own it until you’ve made your last repayment.
The amount you repay each month will depend on the size of any deposit you can put towards it and the number of years the finance agreement is over. Did you know it is possible to finance a campervan for up to a maximum of 10 years?
If you do not have any deposit, or a vehicle to trade-in towards the cost of the campervan, don’t worry, it is still possible to finance the whole amount, subject to the necessary credit status checks.
How To Lower Your Repayments
It’s important to be sure you are able to afford the repayments on your campervan finance agreement. It can cause problems for your credit rating if you fall behind on repayments, so make sure you are comfortable with the monthly cost and the length of time you will be paying it for.
To reduce the amount you repay each month, either pay a bigger deposit (if you can) or finance the campervan over a longer period of time. However, remember that the more years the finance period is over, the more interest you will pay in total.
And, another way to reduce the amount of finance required is to choose a campervan that’s a new conversion on a used base vehicle. You can buy a campervan on finance whether the vehicle is used or new. That might make the campervan of your dreams a bit more affordable and easier to finance.
Given the likely value of your campervan, you’re bound to need to have it fully insured. If it’s not fully insured, and you have outstanding finance on it and your campervan was stolen or written off, you’d still have to continue the repayments even if you may no longer have the campervan. That is a nightmare situation that is well worth avoiding.
Many people think that if they are still repaying the finance on their campervan, they can’t sell it until the end of the finance agreement. That is not true.
You can sell your vehicle at any time during the finance agreement; however, you need to know if your campervan finance agreement includes any early repayment penalty or charge, which is sometimes imposed in the terms and conditions.
If you want to sell your camper while there is still outstanding finance, just ask your finance company for what’s called a ‘settlement figure’.
Interest will be charged up to the day you sell the campervan and repay the full amount of finance (and interest charges) outstanding.
At Revolution Campervans, if someone is trading-in a vehicle with outstanding finance on it, we can repay that amount and put the difference between this and the value of the vehicle (assuming there is some) as a deposit towards their new camper.
There are several choices when it comes to financing a campervan purchase.
At Revolution Campervans, we use a company called Evolution Funding, who can finance a campervan over a period of up to 10 years, but we realise you will probably have other choices of finance available to you as well.
For example, your bank will offer finance, however, this may be up to a maximum period of five rather than 10 years. That might be something to consider.
Hire Purchase is a popular type of finance. It doesn’t mean you are hiring the vehicle. It will be registered in your name, but you won’t own it in full until all repayments have been made or the finance agreement is settled early.
Costs Of Borrowing
The charges for campervan finance often vary, so check what the interest rate is, known as the APR. Balance this against the period of the finance agreement and the ease of arranging the finance in the first place. It’s always important to be aware of all the facts and figures.
Fun times ahead
Have you ever heard of anyone who has regretted buying a campervan? It must be rare! So, if you are comfortable with getting finance to buy your campervan, and you’re sure the repayments are affordable, and you are fully aware of all the costs and terms and conditions, then you will have some fun times ahead making memories with your camper.
Ready to find the campervan of your dreams? Take a look at our range and start planning your camper conversion now, or take a look at the campers for sale from our network of trusted dealers across the nation, you can use our finance calculator to see whether you will be eligible for finance before you start.