Motorhomes cost more than most cars, so the finance tends to be bigger, longer and more carefully assessed. Hire purchase and lease purchase are the main options, and PCP is less common, usually limited to new or nearly new models. This guide explains how each works and the costs to plan for.
In short
Most motorhomes are financed with hire purchase (HP), often over five to ten years, or lease purchase, which lowers the monthly payments by holding back a final payment. Deposits are usually larger than for a car. PCP is offered by fewer lenders, typically on new or nearly new motorhomes and over shorter terms. Personal loans are another option for smaller amounts.
How motorhome finance differs from car finance
- Longer terms. HP on a motorhome can run for up to ten years, compared with up to five for most cars.
- Bigger deposits. Deposits of 10% to 20% are common (Kandoo), though some lenders accept less.
- Age limits. Lenders limit how old the motorhome can be at the end of the agreement.
- Lease purchase instead of PCP. Lease purchase is widely offered on motorhomes, while PCP is limited to some lenders and newer models.
For example, one major lender offers HP over one to ten years on new and used motorhomes, as long as the motorhome is typically no more than 20 years old at the end, and PCP over one to five years on new motorhomes only (Black Horse). Other lenders set their own limits.
The main types of motorhome finance
| Type | How it works | Do you own it? | Typical availability |
|---|---|---|---|
| Hire purchase (HP) | Deposit, then fixed payments over up to ten years | Yes, after the last payment | New and used |
| Lease purchase | Lower payments with a compulsory final payment | Yes, after the final payment | New and used, subject to age |
| PCP | Lower payments with an optional, guaranteed final payment | Only if you pay the final payment | Fewer lenders, mainly new, shorter terms |
| Personal loan | Borrow and buy outright | Yes, straight away | Usually for smaller amounts |
Is PCP available on motorhomes?
Yes, but it’s less common than for cars. PCP depends on the lender guaranteeing what the motorhome will be worth at the end, so lenders that offer it usually limit it to new or nearly new motorhomes, shorter terms and lower mileage. Black Horse, for example, offers motorhome PCP over one to five years, with the motorhome typically no more than five years old at the end and up to 8,000 miles a year (Black Horse).
For most buyers who want lower payments, lease purchase is the more widely available alternative. Lenders such as Paragon and Creditplus offer it on motorhomes. The difference is that the final payment is compulsory and isn’t guaranteed, so you carry the risk if the motorhome is worth less at the end.
Which type suits you?
- You want to own it with no large payment at the end: HP.
- You want lower monthly payments and plan to keep it: lease purchase.
- You’re buying new and want the option to hand it back: PCP, if your lender offers it.
- You’re borrowing a smaller amount: a personal loan may be worth comparing.
Longer terms cost more
A longer term lowers the monthly payment, but you pay interest for longer. On a large amount, the difference is significant. See the comparison in our motorhome HP guide. Choose the shortest term you can comfortably afford.
Costs to plan for
- Insurance, which lenders usually require to be comprehensive
- Storage, if you can’t keep it at home
- Servicing, habitation checks and MOTs
- Depreciation, which affects what it’s worth if you sell or part-exchange
- Fuel and site fees for trips
What lenders check
Lenders run credit and affordability checks, and because the amounts are larger, they may look more closely at your income and existing commitments. Some lenders may also consider your age if the agreement runs into retirement. A larger deposit can improve your chances and reduce the total cost.
Motorhome finance FAQs
How long can you finance a motorhome for?
Often up to ten years on HP, depending on the lender, the amount and the motorhome’s age. PCP terms are usually shorter, up to around five years.
Can I get finance on a used motorhome?
Yes. HP is widely available on used motorhomes, though lenders limit how old it can be at the end of the agreement.
Can I get PCP on a motorhome?
Some lenders offer PCP, but usually only on new or nearly new motorhomes, over shorter terms and with mileage limits. If you can get it, the guaranteed final payment means you can hand the motorhome back at the end if it’s worth less. Lease purchase is more widely available.
What’s the difference between lease purchase and PCP?
Both lower your monthly payments with a large final payment. With lease purchase, the final payment is compulsory and you own the motorhome after paying it. With PCP, it’s optional and guaranteed, so you can hand the motorhome back instead. See motorhome lease purchase.
Do I need a deposit for motorhome finance?
Not always, but deposits of 10% to 20% are common, and a deposit reduces the amount you borrow and the interest you pay.