How long can you finance a motorhome?

So you know thebest way to finance a motorhome. But how long can you finance a motorhome – in other words, how much time can you have to pay off your motorhome finance loan? This is an essential question for anyone considering motorhome financing, as the loan repayment time will of course affect what size and type of loan you look for. Our guide tells you all you need to know! Read on for more information.

How long can you finance a motorhome?

How long can you finance a motorhome depends on the terms of your RV loan. But most finance companies, e.g. Black Horse Finance, will have a loan term of 1-10 years. Longer terms, for example 20 years, are possible if the loan is secured against collateral and if the loan amount is high (typically £50,000+).

You should decide how long you want to take the loan out for before you apply for finance, looking carefully at your own finance situation. Many people prefer a shorter loan term, for example two or three years, but of course this means that monthly payments are higher. The reverse is true too – a longer loan term will mean lower monthly payments… but then the total credit amount will be higher. How long you can finance a motorhome is often more dependent on your own financial circumstances than the terms of any loan.

The good news is that the increased popularity of motorhoming means that financing an RV is easier than ever. Whether you take out a personal loan or arrange an auto loan, if you have a good credit score you should be able to shop around for financing options to suit your own timeline.

What are standard motorhome loan term lengths?

Standard motorhome loan term lengths are between 1 and 10 years, with 3-5 and 5-7 years being the most common. Five years is a good ballpark figure to aim at if you’re just starting to look at your finances to see if you can afford a motorhome loan – you can then adjust up or down according to your own situation.

As above, “how long can you finance a motorhome” can be up to 20 years, normally for new models such asThe Adventurer, above. These loans are usually secured against a high-value item, such as your home or other property. The obvious advantage here is that you have longer to pay off the loan; the big drawback is that you have to be absolutely certain you can pay the full loan off as agreed.

What factors affect your motorhome loan term?

The length of time you can finance a motorhome for depends on several factors:

1. Type of loan

A personal loan, i.e. from your bank, will normally have a repayment period of three to 10 years. If you opt for a hire purchase (HP) loan, where you won’t own your motorhome until your final repayment is made (like a house/mortgage), the loan term is likely to be five to seven years.

2. Motorhome age

Older/second hand vehicles are a tempting option if you’re on a budget. But a loan arranged to buy an older motorhome will have a shorter loan term. On the other hand, if you want a brand new, full-rig motorhome and have good credit rating, you could qualify for a loan where repayments are spread over 20 years. So how long you can finance a motorhome could be two years for a used motorhome, and 20 for a new one.

3. Deposit amount

Some lenders require a deposit to have been made on the motorhome – usually 10% – before any loan is given. You’ll also have to put down a deposit of at least 10% if you’re arranging a HP loan. As with any type of financing, the bigger the deposit you can put down at the start, the lower the overall loan cost and shorter the loan term will be.

Loan interest rates

Again as with any type of financing, how long you can finance a motorhome will be affected by loan interest rates. A higher interest rate, such as for loans aimed at people with a poorer credit score, will make the overall cost of the credit higher. This will take longer to pay off unless you’re able to make high monthly payments.

Earn a return on your financed motorhome

How long you can finance a motorhome depends on many factors. Paying back your motorhome finance loan over two or three years is highly recommended if you can afford it. It’s a relatively short period of time, and then the motorhome is 100% yours. But if you need or prefer to take longer to pay off your loan - even taking into accountdepreciation of motorhomes - a motorhome is still a great investment to save on holiday and accommodation costs.

Motorhome ownership can bring in money too: if you hire out your motorhome on Camplify, you can start to earn a return to pay off your loan!

Why Camplify?

Camplify connects owners like you with local and international holidaymakers - all of whom are verified to maximise the safety when you hire out your motorhome. Discover more of our advantages for owners below:

• It's free to list your motorhome.

• If you don’t have all-risk insurance, we can provide you with it when you sign up.

• We give your van a 24/7 RAC breakdown cover.

• You have complete freedom to approve or reject guests interested in renting your motorhome. Your wheels, your rules.

• We provide you with tips and step-by-step guides on how to improve your service and your motorhome to get more and more bookings!

The sooner you set up your listing, the sooner it will start to receive visits and bookings! See how much you could earn if you rent out your motorhome with ourfree income calculator or sign up now to start enjoying the above advantages today.

If you still have questions, want to discuss your income potential with an expert or get more information on how to list your motorhome, call us on ☎ 0330 808 1811 or visit www.camplify.co.uk. We’ll be happy to help you with anything you need!