For buying and refinancing caravans
Speak to us today...
High quality prestigious car finance solutions for UK & international clients.
We can deliver enhanced, bespoke or exclusive terms through our market knowledge.
Call us on 0203 900 4322 to discuss your requirements.
If you are looking for a way to buy a caravan, you may be wondering what the different options available for financing it are. Caravans are a popular choice for many people who want to enjoy the freedom and flexibility of travelling and camping in different locations. However, caravans can also be quite expensive, especially if you want a new or high-end model. That is why many people opt for caravan finance, which allows them to spread the cost of their purchase over a period of time.
There are many types of caravan finance available, each with its own advantages and disadvantages. In this article, we will explain the main features of each option, and help you decide which one is best for you.
We will also cover some of the popular types of commercial vehicles you can buy on finance, such as motorhomes, campervans, and trailers. Finally, we will give you some tips on how to use a finance broker to help you find the best deal for your caravan finance.
There are several ways you can finance your caravan purchase, depending on your budget, preferences, and credit rating. Here are some of the most common options:
Asset finance is a type of loan that is secured against the caravan itself. This means that if you fail to make the repayments, the lender can repossess the caravan and sell it to recover their money. Asset finance usually offers lower interest rates and longer repayment terms than unsecured loans, as the lender has less risk. However, asset finance also means that you do not own the caravan until you have paid off the loan in full, and you may have to pay a deposit upfront.
Asset finance can be divided into two subtypes: hire purchase and lease purchase.
Hire purchase is a form of asset finance where you agree to pay a fixed monthly instalment for a set period of time, usually between 2 and 5 years. At the end of the term, you have the option to buy the caravan outright by paying a final balloon payment, which is a large lump sum that covers the remaining value of the caravan. Alternatively, you can return the caravan to the lender and walk away, or trade it in for a new one and start a new agreement.
Lease purchase is similar to hire purchase, except that you do not have the option to return the caravan at the end of the term. You must either pay the final balloon payment and own the caravan, or trade it in for a new one and start a new agreement. Lease purchase is a good option for people who are sure that they want to own the caravan at the end of the term, and do not mind paying more interest over the loan period. However, lease purchase also means that you are committed to paying the balloon payment, which can be a large amount of money.
Balanced payments is a type of asset finance where you pay a fixed monthly instalment for a set period of time, usually between 2 and 5 years. However, unlike hire purchase or lease purchase, there is no balloon payment at the end of the term. Instead, the monthly payments are calculated to cover the full value of the caravan, plus interest, by the end of the term. This means that you own the caravan outright once you have made the final payment.
Contract purchase is a type of asset finance where you pay a fixed monthly instalment for a set period of time, usually between 2 and 5 years. At the end of the term, you have the option to buy the caravan outright by paying a final balloon payment, which is a predetermined amount that is based on the estimated residual value of the caravan. Alternatively, you can return the caravan to the lender and walk away, or trade it in for a new one and start a new agreement.
Personal contract purchase (PCP) is a type of asset finance that is similar to contract purchase, except that it is designed for personal use, not business use. PCP usually offers lower monthly payments and lower interest rates than contract purchase, as the lender assumes that the caravan will have a higher residual value at the end of the term, due to less wear and tear. However, PCP also has stricter mileage and condition limits, which means that you may have to pay extra fees if you exceed them.
PCP is a good option for people who want to use the caravan for personal purposes, such as holidays or leisure. It also allows you to have the flexibility of choosing whether to own the caravan or not at the end of the term. However, PCP also means that you will have to pay a balloon payment at the end, which may be higher or lower than the actual market value of the caravan, and you may have to pay extra fees if you breach the mileage or condition limits.
If you are looking for a caravan in the UK, you have a lot of options to choose from. Whether you need a caravan for personal or commercial use, you can find a model that suits your lifestyle and budget. In this table, we have listed some of the types of caravans that are available for financing in the UK, along with their price ranges.
You can compare the size, design, and amenities of different models and decide which one is the best for you. Remember, these prices are only averages and may vary depending on various factors. Always consult with the lender or seller before making a purchase.
The price range is based on the average market value of new and used caravans as of February 2024
|Price Range in UK
|£18,999 - £22,499
|£21,495 - £25,495
|£20,894 - £24,894
|£22,995 - £27,995
|£18,995 - £21,995
|£19,999 - £23,999
|£19,999 - £24,999
|£26,995 - £31,995
|£17,395 - £18,395
|£19,494 - £23,494
|£34,194 - £35,194
|£23,995 - £29,995
If you choose to finance your caravan using an asset finance plan, such as hire purchase, lease purchase, contract purchase, or PCP, you may be wondering what happens at the end of the plan. Depending on the type of plan you have, you may have the following options:
The best option for you will depend on your personal and financial circumstances, as well as your preferences and plans for the future. You should compare the costs and benefits of each option and make an informed decision.
Finding the best deal for caravan finance can be a daunting task, especially if you are not familiar with the different options, terms, and conditions. That’s why using a finance broker can help you get the best deal and the most suitable option for your purchase. At Clifton Private Finance, we can help you:
At Clifton Private Finance, we are a leading finance broker in the UK, and we specialise in caravan finance. We have access to multiple asset finance lenders, and we always compare the best options to offer you bespoke finance solutions that suit your needs and budget.
If you are interested in buying a caravan on finance, contact us today and speak to one of our expert advisers. We will be happy to answer any questions you may have, and provide you with a free, no-obligation quote. We look forward to hearing from you soon.
Call us today to discuss your requirements on 0203 900 4322
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.