To Finance or to Buy?

Motorhome ownership has never been cheap but with rising costs for manufacturers it’s getting more and more expensive. For many, though, it’s not a question of what to buy, it’s a question of how best to afford what is available. Some choose to finance their motorhome using the bank or the deal and, for some, it’s possible to buy outright. But what is the right thing to do and how can you ensure the decision you make is right for you?

The Value of Cash

With the cost of motorhome insurance, tax and fuel, motoring isn’t cheap these days and there’s certainly no point having a motorhome if you’re not able to use it. If buying your motorhome outright would leave you penniless then it may be better to go for a finance option. Though you will probably end up paying more for your motorhome in the long run, you might find that you can offset that extra cash by earning interest from your savings.

A Good Sized Deposit

It’s important to remember with any finance deal that the bigger your deposit, the better the deal. If you’re only able to front a very small deposit then it may be better to downsize your expectations and look to borrow money elsewhere. Equally, beware of finance deals that restrict deposit size – they will be more expensive and you may be better off borrowing from a bank.

Factoring in Depreciation

Finally, it’s important to remember that a motorhome is not necessarily going to be completely worthless when you want to sell it on. It will have some value and you may never even finish any finance arrangement you go in for. Factor in the potential resale value and whether your financier will allow you to repay early, and, at all times, remember that your motorhome will depreciate! Unless it’s vintage, rare or a renovation project your motorhome will lose value the moment you drive it out of the showroom.

Financing is certainly more expensive in the long run, but it’s a realistic and solid option for most buyers. It’s better to leave yourself some leeway with your cash. Equally, always remember that there are deals and there are good deals! A bad finance deal may be the wrong move in itself.