Caravan Finance

How caravan finance works

Most caravan finance is caravan hire purchase. When people ask how to finance a caravan, this is almost always the answer. You put down a deposit, the lender pays the balance, and you repay over an agreed term — the caravan is security for the agreement and becomes yours outright once the final payment is made. Because the lender holds that security, caravan finance is normally cheaper than a caravan loan taken unsecured, and available over longer terms.

A personal loan is the alternative and occasionally the better answer, particularly on older or lower-value vans where a secured lender may not want the asset. The honest comparison is total cost over the term rather than the monthly figure, and we will show you both where both are available.

Touring caravan finance

Touring caravans hold their value well and are straightforward to fund. Make, model, age and condition drive the term available. A recognised marque with a service history will fund over a longer period than an unbranded or heavily modified van of the same price, which brings the monthly figure down.

Used and second hand caravan finance

Most of what we arrange is used caravan finance, and it is entirely routine. Age is the main constraint — every lender has a limit on how old the van can be at the end of the agreement, not just at the start, which is what shortens the available term on older vans. Private sales are fundable as well as dealer purchases, though the paperwork and checks are slightly more involved.

Deposits and monthly costs

A deposit is not always required but almost always helps, because it reduces the lender’s exposure and widens the number of lenders willing to look. Use the caravan finance calculator on this page for an indication of monthly costs across different terms — it is an illustration rather than a quote, and the figure you are actually offered depends on the van, the term, the deposit and your circumstances.

Caravan finance with bad credit

Looking for caravan finance with bad credit is more common than people assume. A past default, a settled CCJ or a thin credit file does not automatically rule out caravan finance, and we work with lenders who assess the whole picture rather than a score alone. We will not promise acceptance and you should be wary of anyone who does — all lending is subject to status, affordability and the lender’s own checks. What we can do is tell you honestly whether it is worth applying before any search is run against your file.

If the van you are looking at is a sited holiday static rather than a tourer, see static caravan and lodge finance, where the park’s site licence changes how the term is set. If you are weighing a motorhome instead, see motorhome and campervan finance.

What to send us

Send us the caravan — make, model, year and the asking price — along with whether it is a dealer or private sale and what deposit you have available. We will come back with which lenders will consider it and what the realistic terms look like. No credit check to ask.