How to Find Funding for a Caravan, Campervan or Motorhome
The pandemic led to a rise in people staying within the UK for their holidays. As a result, there was a sudden demand in caravanning breaks. The waiting list for caravan orders doubled and waiting times have only started to decrease recently, as people look at their financial options. Are you looking to find funding for a caravan, campervan or motorhome?
With the cost-of-living crisis, caravanning could be a cost-effective long-term solution, especially if you enjoy multiple holidays throughout the year. Although financing such a large purchase may seem challenging at first, there are solutions if you know where to look.
How much does a caravan cost?
The cost of a caravan or motorhome will depend on whether you buy a new or used vehicle:
- £15,000 to £100,000 for a new caravan vs. £5,000 to £50,000 for a used caravan.
- The average cost of a new motorhome is £63,000, while a used motorhome could cost you 23% less.
- Don’t forget your annual running costs! Motorhome tax is likely to cost you between £165 – £270 per year, insurance £250 – £400, and these vehicles average 20 – 35 miles per gallon.
Before you purchase a caravan or motorhome, it can be useful to rent out a similar model for a holiday. This will allow you to trial the vehicle, so you can make a more informed decision.
What should I consider when buying a campervan?
Create a wish list of all the features you would like your camping vehicle to have. Along with a bed, table and cooking facilities, for example, you might decide that a portable chemical toilet is a must-have feature. Double check you have enough headspace for your height, along with storage space, and allow enough seats for family and friends.
When it comes to power, many vehicles use gas and electric for fridges and cooking facilities. Therefore, a second or ‘leisure battery’ is important, as this will ensure your main vehicle battery is not drained. You could even consider solar panels to power your shower or other tech.
Ideally, ask an expert to check the vehicle condition with you before you purchase. It is important to know where to look for rust, corrosion and signs of wear and tear. Becoming a member of The Caravan and Motorhome Club will give you access to real people who have bought these types of vehicles. You will also benefit from expert guidance on what to look out for and how to maintain your caravan or motorhome.
Funding a caravan or campervan
If you are thinking of buying a caravan or campervan, there are a few ways to find this level of funding. Unless you are lucky enough to have ample savings in the pot to make this type of purchase, you might want to avoid dipping into your hard-earned money.
If you are aged over 55 and you have a private or personal pension, you might be able to drawdown on your pension funds. It is important, however, to get an accurate forecast to ensure you have enough money left to last you throughout your retirement. Please contact us if you would like a pension review with our strategic partner.
Equity release for large purchases
One solution for funding a large purchase is through equity release. Known as a Lifetime Mortgage, this allows you to release some equity from the value of your home if your property is worth more than you paid for it. Available to those aged 55 or over, this is a long-term loan that only gets paid back after you pass away or if you were to go into a care home.
By releasing equity from your property, you might be able to unlock enough cash to purchase a caravan, campervan or motorhome. For trusted advice on equity release and mortgages in general, always talk to a qualified mortgage broker.
Are you an IFA or an accountant with a client who is trying to find funding for a large purchase? Working alongside you, we may be able to offer them a safe and practical solution – please get in touch with our team to talk through the options available.
If you’re looking for ways to fund a caravan, campervan or motorhome purchase, talk to our friendly team for advice. Call 01455 238 650 or send us an enquiry.