Most people look forward to getting something shiny and new. It’s exciting and makes us feel good. However, sometimes, the excitement can get in the way of good judgement, and if this happens, you may end up with a less favourable outcome to your purchase and be left with the feeling of buyer’s remorse.

This is especially so with so-called big-ticket items like a house, or a new vehicle such as a motorhome or campervan which can often be the second most expensive single item a person will ever purchase after their main residence.

Just like a house purchase, many people will use a loan to help them purchase their mobile home, so it’s very important that you take the necessary steps to ensure you’re getting a good deal and that you end up enjoying your purchase for the freedom and adventures it provides, without holding on to regrets that you didn’t get a good deal on your finance.

The cost of borrowing money has changed significantly in recent years, and the period of ultra-low interest rates we saw for a long time has come to an end. However, there is still a need for finance for these big-ticket purchases and so, along with our partners at Magnitude Finance, we’ve put together some top tips on getting a good deal.

Top Tip 1 - Do your Research and Compare.

Without a benchmark for what constitutes a competitive interest rate for motorhome and campervan insurance, it's challenging to discern a good deal from a bad one. Whilst initially tempting, the task of scouring through the numerous offers available online would soon become overwhelming. Our partner, Magnitude Finance and their Finance Calculator does much of the hard work for you because they search their extensive panel of lenders to find you the best deal.

Remember that even small differences in interest rates can, over the duration of the entire loan period, add up to a significant sum of money, so our tip here is, compare, compare, compare. Only when you’re satisfied that you’ve researched the market properly should you feel completely comfortable signing up with a provider.

Top Tip 2 - Check your credit score.

Monitoring your credit score is essential to securing favourable rates. With three main credit bureaus—Equifax, Experian, and TransUnion—holding crucial data, finance companies rely on this information to assess your creditworthiness.

Regular monitoring allows you to rectify any inaccuracies and understand how to manage your score effectively and this could help you when applying for any type of credit from a mobile phone, motorhome finance or a mortgage.

Insurance description

Top Tip 3 – Compare the Total Amount Payable (TAP)

The Total Amount Payable (TAP) offers a holistic view of the true cost of a motorhome finance agreement. It adds up the deposit, monthly payments, any fees, and where applicable, the final balloon payment.

This comparison is particularly crucial for Personal Contract Purchase (PCP) agreements (typically available on factory Campervans), where seemingly lower monthly payments may hide higher APRs and final balloon payments.

If you just look at the monthly payment in isolation, you might end up paying significantly more on your motorhome finance if you choose to settle the agreement early or when you buy the motorhome at the end of the term.

Of course, if your intention from the start is to go the full term of the agreement and hand the motorhome back, then the lowest payment might be best, but situations change, so it is worth at least knowing what the impact these variables will have on your wallet!

Top Tip 4 – Beware of Add-Ons

When buying a new, or used motorhome, particularly from a dealer, you will often be presented with a range of ‘add-ons’. These are typically insurance-based products and can range from tyre protection insurance to upgraded warranties, paint protection and more.

These products may offer a good revenue opportunity for the dealer, so they will often be keen to add these to any sale. Before you accept an offer, not only should you ensure that you do actually want and need the product, but you should check the whole of market to give you the peace of mind that you are getting the best solution, offering the right protection at a fair price.

And if you’re looking to compare motorhome insurance prices, click on “Get Quotes” at the bottom of this page! Five minutes spent now could help you save £££s on your motorhome insurance.

Insurance description

Compare Motorhome Insurance and see how much you could save!

Get a quote

The Motorhome Insurer is a UK trading name of ICE Internet Comparison Experts Limited who are an appointed representative of Vast Visibility Limited who are authorised and regulated by the Financial Conduct Authority under firm reference number 566973.

You can check our details on the FCA Register