Yes, you have several options when it comes to financing a caravan. A new caravan will typically set you back more than £15,000, and some cost at least double that. If you’re planning on a string of caravan holidays on the coast, or perhaps in the countryside, but you’re not sure how you can afford to turn your dreams into a reality, a loan is one way that could help. The options available to you are:
Personal loan. A personal loan is when you borrow a certain amount of money from a specialist lender, and pay it back in monthly instalments over an agreed period of time. With a personal loan, you can pay for your caravan with the money you receive upfront, and re-pay the cost over a period of time.
Hire purchase (HP). With hire purchase plans, you’ll spread the cost of the caravan over an agreed period, paying a fixed amount each month. During this time you’re effectively hiring the caravan at the same time as purchasing it, and at the end of the period you’ll own the caravan outright.
Personal contract purchase (PCP). A PCP is much like a hire-purchase, except you’ll pay less each month, at the end of the agreed period make a one-off payment in order to own the caravan outright.
Credit cards (for part-financing). If you have a good credit score and are able to get approved for a card with a high credit limit, you could use it to fund at least part of your caravan purchase. With a credit card, you can spread the purchase of your caravan over an extended period of time, with a minimum amount required to be re-paid every month. You could consider a 0% purchase card to give you an interest-free period.
In-store finance. Most caravan dealerships offer in-store hire-purchase or personal contract purchase finance options when you buy your caravan with them. In fact, a huge number of people simply sign on the dotted line there and then without comparing their options. While these deals sometimes boast an enticing 0% interest promotion, make sure you compare the overall cost of the finance with options from other lenders. Shopping around only takes a moment and almost always saves you money.