Caravan finance and loans

• 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.

Can I get 0% caravan finance?

Key features of caravan loans

• Loan terms. The terms can include the loan duration as well as interest rates and repayment plans.
• Loan amounts. The amount of money that you are allowed to borrow.
• Get a personalised quote. This will give you an indication about the terms in which a provider will lend you money, and will have no bearing on your credit rating.
• Price matching. Some providers offer a price guarantee to match or beat offers from other providers.
• Monthly repayments. You will be able to repay your loan in monthly installments.
• Repayment holidays. This is an agreed period with your lender, perhaps either one or two months, where you will not have to make repayments. However, interest will still build up.
• Quick decisions. Providers will usually make a fast decision about whether they will lend you money or not.
• Access to funds. You are able to get access to all the funds upfront.
• Fees. You may incur extra costs, such as interest or late payment fees.
• Perks. With some loans, there may be special benefits such as a 0% interest period.
• Overpayments. If you wish to pay off your loan sooner than agreed, making overpayments is the way to do it. Most overpayments will not incur a penalty so long as you remain within the overpayment limit. It is important to check the small print of your loan before you make an overpayment.
• Early repayment. For many loans, you will incur a penalty and additional costs if you repay your loan in full earlier than expected.