Motorhome Finance Working with Dealers

In this latest ACF InFocus, we discuss Motorhome Finance, with a focus on the comprehensive support that ACF Direct gives to dealers.

The Customer Journey

Buying a motorhome is a big investment. Given that they can be financed for up to 10 years, dealers should first and foremost ensure that the vehicle meets their requirements and that they have the space to keep the vehicle safely and securely. we have known customers to purchase motorhomes as an impulse buy, and then suffer a huge loss with the combined effect of depreciation and finance settlement; equally, we have known customers to suddenly realise that there is no space to keep it on the drive. Motorhomes can be hired for short periods of time and we believe that dealers should encourage this before asking the buying public to sign on the dotted line.

When the customer has decided that the motorhome is right for them, they should be asked what level of monthly commitment is both affordable and sustainable. For a 10-year agreement, the customer would not want too great a proportion of their expendable income committed to finance – they do need to be able to enjoy the vehicle and be able to budget for any other financial commitments. A responsible and measured approach is required to match customers with the right vehicle and finance package.

Types of Finance Available

Rather than having to wait an indeterminate length of time before enjoying a motorhome, there are a number of financing options available.

Hire purchase is perhaps the longest-established form of credit suitable for the purchase of a wide variety of goods, including motorhomes; a deposit (typically around 10% of the purchase price) needs to be secured and this is then followed by the payment of equal monthly instalments until the full amount has been paid. Before concluding an agreement, the hire purchase company is obliged to check the customer’s credit rating as an indication of their ability to make the repayments. It is important to remember that ownership of a motorhome is not confirmed until the final payment is made, and if the customer chooses to sell the vehicle without the permission of the hire purchase company, they may be committing a criminal offence, as pointed out in the Citizens’ Advice Bureau. If they default on the agreed monthly instalments, the company may also repossess the motorhome.

If you are a dealer or looking to finance your dream motorhome, please get in touch with us here at ACF, where we can discuss a range of options.