Motorhomes: a cost-saving guide
There are a number of ways in which you might be able to save money when purchasing a motorhome.
These can be considered as falling under a number of different categories.
Unlike typical cars, even used motorhomes are in high demand and that means that your negotiating position may not be very strong in terms of seeking substantial discounts on the asking price.
Even so, there may be no obvious reason to purchase the first model you see. Just as with any form of large expenditure, it will make sense to carefully think through your requirements, motorhome finance, and to evaluate a number of different options before making any commitments.
If you are mechanically minded, it might be possible to source a motorhome that is perhaps slightly older than your ideal and in need of a little attention. It’ssometimes worth asking a trusted and experienced supplier of motorhomes to search for one that meets your requirements and also your budget. Such a dealer may well have trade contacts that you would not be able to access directly.
Another thing well worth looking at closely here is the size of the motorhomes you are considering.
Some buyers have a natural inclination to look for top-of-the-range models with the greatest amount of internal space and facilities possible. In fact, such models may be unnecessary for your typical recreational requirements and it might be possible to compromise a little on what you are looking for – thereby saving yourself money.
Many people assume that the lowest cost option is inevitably to use cash (in the sense of liquid capital) when purchasing motorhomes.
In a very limited sense that may be correct but it’s worth thinking more broadly about the issue. Remember that once you have spent your cash reserves on a motorhome, that money is no longer immediately available for use in an emergency situation.
If you are seeking motorhome finance, there are various options open to you. Some of these may be more appropriate for your individual circumstances than others and as a result, the most cost-advantageous approach for you may be different to the same thing for someone else.
Broadly speaking, you are likely to be facing one of the following options:
- Hire Purchase (HP). This is a well-known method of funding the purchase of higher value assets and has been successfully operated over a long period of time. Essentially the lender will purchase the motorhome and allow you to use it as the “registered keeper” over a period of time. You will make monthly payments to them and once the last repayment is made, the vehicle will be transferred into your legal ownership;
- leasing options. There are a number of different routes under this generic heading and not all of them necessarily result in the vehicle becoming your property at the end of the term. If you consider these options, you may need specialist advice, as not all of them will necessarily be advantageous or cost-effective for you;
- bank loans. In today’s typically risk-averse banking environment, loans of this type for luxury products may be rather more difficult to find than was once the case.
It is important to be clear that the option you select offers a pricing profile that you have satisfied yourself is suitable.