Once on the road to buying a caravan or motorhome, finance and insurance must be something to which you give serious thought. When looking for Finance it is worth shopping around. There are two main ways of financing a Caravan or Motorhome, these are through a Dealer's Hire purchase scheme or a Personal Loan.
If you buy a new or second-hand caravan from a dealer, they can arrange finance for you in much of the same way that a car dealer can do it when you purchase a new or second-hand car. These are normally Hire Purchase agreements that are arranged and the dealer normally receives a commission for the deals that he manages to complete. Hire Purchase agreements are secured against the Caravan and this means that it is owned by the HP company until you have paid the final repayment. This can be useful if your caravan or motorhome develops a fault as they will want to help you sort the problem out. Two of the many finance companies which operate through the dealer network are
Black Horse and Capital Bank Leisure.
Alternatively a personal loan can be arranged through a number of finance companies
which are available from high street lenders, banks, building societies and on the internet. These tend to be unsecured loans and therfore the caravan is yours from day one, they allow you the flexibility to buy the caravan from any dealership. Research on the internet will provide you with plenty of names of possible lenders including Meridian Finance who specialise in providing Caravan and Motorhome finance. Further details about their finance can be found on our Caravan Finance page of this website.
After purchasing your caravan, the next sensible step would be to insure it against the usual hazards of owning a caravan which include damage, theft etc. A standard policy should include cover for most of the following points:
- All risk policy not only protecting the caravan but also the contents and equipment against loss or damage whilst being used and whilst in storage.
- Cover whilst it is being towed.
- The cost of recovery (both at home and whilst abroad).
- New for old.
- Awning Cover
- Costs of temporary accomodation if something should happen to the caravan.
- Personal accident cover.
- Public liability cover.
For Motorhome buyers extra considerations may include
- UK roadside breakdown assistance
- New motorhome replacement
There may also be discounts for extra security devices installed on your caravan, membership to a caravan organisation or in the case of a motorhome a clean licence and no recent insurance claims. Companies which can offer useful advice are Caravan Guard and Quote Direct.
Further details about the policies available at Quote Direct are on our Caravan Insurance page.