Motorhome Finance Explained: HP vs PCP vs Personal Loan - Which Is Right For You?

How Does Motorhome Finance Work in the UK?

Motorhome finance works by the buyer spreading the cost of the motorhome over a term length such as 5 years, as opposed to paying the full cost. The purchase is covered by a lender, and then you/the buyer repays this through monthly instalments. The most common repayment processes are Hire Purchase (HP), Personal Contract Purchase (PCP), or a Personal Loan.

HP vs PCP vs Personal Loan

Hire Purchase (HP)

With HP, the motorhome belongs to you after the final payment is made. The monthly payments are usually higher, as you're paying off the full vehicle value, and a deposit of around 10% is usually required. There are no mileage limits, making HP best suited to buyers who want to own the vehicle outright long term.

Personal Contract Purchase (PCP)

PCP works differently, ownership is optional, and the motorhome will only become yours if you choose to make a final balloon payment. Monthly payments are lower, as you're only paying off part of the vehicle's value, and a deposit of around 10% is typically required. Mileage limits are sometimes applied. This option best suits buyers who like flexibility or want to upgrade regularly.

Personal Loan

With personal loans, the motorhome is yours straight away, this is because you pay for the vehicle outright. Monthly payments depend on the loan rate and term, and usually no deposit is required. There are no mileage limits, making this a good fit for buyers who want simplicity and full ownership from the start.

Worked Example: £45,000 Motorhome Over 5 Years at 8.9% APR

• HP: £925/month, no balloon payment, vehicle is yours once complete
• PCP: £550/month, with an optional final balloon payment of around £15,000 to keep the vehicle
• Personal Loan: £930/month (rates may differ from dealer finance), vehicle owned outright from day one

Figures are all examples, use our finance calculator for a personalised quote based on your chosen model.

What Is the Difference Between HP and PCP?

With HP, you pay off the full vehicle price, as well as interest but once you have paid the final payment, the motorhome belongs to you. With PCP, you pay off only part of the value during the term, with a lump sum balloon payment due at the end if you want to keep it, otherwise you can return it or trade up.

Can I Finance a Used Motorhome?

Yes, finance is available on used motorhomes, including those in our own quality checked stock. Lenders consider the vehicle's age, mileage and condition, this means older vans may have shorter maximum terms.

How Long Can You Finance a Motorhome For?

Term length usually ranges between 2-8 years, 5 years being the most popular option. Longer terms usually have lower monthly payments, but they have a higher amount of interest paid in the long run.

Can I Get Motorhome Finance With Bad Credit?

It's possible, though options may be more limited and rates higher. We work with a panel of lenders who consider a range of circumstances, check your eligibility with our no obligation, soft search tool before applying.

Travelling More Sustainably

Once you've chosen your finance, here are simple ways to reduce your motorhome's environmental footprint:

• Fit solar panels to reduce generator/hook-up reliance
• Use eco-friendly, biodegradable cleaning & toilet products
• Plan routes to minimise unnecessary mileage
• Choose campsites with renewable energy or green certifications
• Drive at steady speeds to improve fuel efficiency

The Advantages of Motorhome Finance

• Spreads cost, protecting savings
• Fixed monthly payments aid budgeting
• Access to newer, safer, more efficient vehicles
• PCP offers flexibility to upgrade regularly

Ready to Get Started?

Browse the current motorhomes we have in stock, you can filter them by price range, try our finance calculator, or check your eligibility today, contact our friendly team who are on hand at RV Super Centre to help you find the right motorhome and the right finance package to match.

Financial Disclaimer

This article is for example purposes only and does not constitute financial advice. Finance figures are all examples and actual rates, terms and monthly payments depend on individual circumstances. Please seek independent financial advice if unsure.