There are three types of motorhome finance offered by the lenders we deal with. You’ve almost certainly heard of one of them and you’re probably familiar with the others too.
Hire Purchase (HP) – this is one of the most commonly used types of finance.The lender pays the dealer and takes ownership of the motorhome. You then hire the motorhome from the dealer, you make your monthly payments until it’s paid in full and then the ownership passes to you.
Personal Contract Purchase (PCP) – this is very similar to HP, the finance company pay the dealer, the motorhome is theirs and you pay an agreed monthly amount to hire it from them. At the end of the agreed time, you have three options. You can either:
– hand it back and pay nothing further
– put any value left in the motorhome towards another one
– pay a balloon payment to own your motorhome, you’ll be told how much this is beforehand
All three options are legally binding contracts, so if you have any queries about how they work and what’s expected of you, speak to us, we’ll be more than happy to explain it to you.