Purchasing a motorhome is a big step and it is often more expensive than most people think. Hence why there is a range of options to help you take out a loan for the purchase of a motorhome. Typically, these can come in the form of a loan from the person selling the motorhome, or you can even apply for a loan for a motorhome at your bank, or with an online company.
In this article, 5 questions about motorhome financing are answered so hopefully, you will get the information that you need.
1. What Documents Do I Need To Apply For A Motorhome Loan?
When you are applying for a motorhome loan, you’ll be required to provide some legal documents which will usually include proof of identification, your annual income, your home ownership status, and the length of time at your current address. You will also need a list of financial commitments such as rent, mortgages and bills, any outstanding loans, credit cards, and your assets. For more information on what you may need to apply for a motor home loan, visit Auto Finance Online.
2. Are There Age Limits On Driving A Motorhome?
There is an upper age limit for driving a motorhome and when you reach 70 years old, you will need to renew a driving license, which can impact purchase costs. At this age, the maximum permissible vehicle weight will be 3,500 kilograms which is the weight of most motorhomes.
3. What Options Are Available To Finance The Motorhome?
There are a few options available to finance a motorhome and circumstances such as good or bad credit histories will help you find the suitable financing option for you. For most companies that offer motorhome financing, you will usually be able to take out loans based on hire purchase and lease purchase.
4. Hire Purchase And Lease Purchase; What Is The Difference?
When you hire purchase your motorhome, you pay the cost of the home and the interest and the admin fees over monthly instalments, which will be hammered out at the time of the contract. These payments remain the same throughout the entire contract and after you have made the final payment. you will own the motorhome.
A lease purchase payment involves fixed monthly payments throughout the contract as well, however, they are often at a lower price than the hire purchase. At the end of the contract period, you will obtain the full ownership and you then have to make a balloon payment, which will be equivalent to the value of the motorhome at the given time. This will be calculated at the beginning of this agreement, and you can prepare to have the right funding in place when this arises.
5. Will I Need To Pay A Deposit?
Not in all cases, but it is worth noting that any deposit that you pay will be deducted from the total that you need to finance your motorhome, and therefore having a deposit set down will result in you paying lower monthly instalments overall. It is also worth noting that monthly instalments will be based on the price of the motorhome, your credit history, and a credit check.