The Ultimate Guide On Financing Your Motorhome

If you’re daydreaming of packing your bags and hitting the open road, you’re not alone! The notion of owning your motorhome is exciting. Exploring the great outdoors can be a regular occurrence with your own camper, enjoying fuss-free travel with all the comforts of home right there with you!

A motorhome is a significant investment though, and you’ll want to ensure you pick the right one at the right price for you. At Apollo RV Super Centre, we have a wide range of quality new and pre-loved motorhomes from 2 to 6 berths to suit your needs.

When considering a motorhome or campervan purchase, there are a lot of factors that come into play. One of the biggest considerations is bound to be the cost of a motorhome, and how best to finance it. While we have no doubt that your motorhome will pay for itself in good times and give you years of use, here are some options you may want to consider to finance your first motorhome.

Is it Worth Buying A Motorhome?

Purchasing a motorhome, either new or second-hand is an investment in your future. Enjoy the sense of freedom that comes along with being your own travel guide. You’ll never need to book a hotel or Airbnb again! Although the initial splurge can be a big one, if you’re planning on taking full advantage of your new home on wheels it can work out to be economical in the long run. As with most big purchases though, it’s worth doing your homework first before handing over your cash.

You’ll need to decide what motorhome is right for your lifestyle, your budget for the upfront purchase as well as ongoing costs and the time you’ll need to invest when it comes to maintaining your vehicle. We’ve put together a checklist of motorhome tips for beginners with the 10 things you should consider before you buy your first motorhome to help you decide if motorhome ownership is right for you.

How Much Does A Motorhome Cost?

First things first, you’ll want to have a clear budget. We can all get carried away when browsing the top of the range offerings, but the best purchase will be one that offers the best value for your budget. Before you start searching for your dream motorhome, sit down and examine your finances. You’ll spot early on if you will need to look at specific motorhome finance options. Financing your motorhome can help you make the dream a reality much quicker.

Speak to your local salesperson about the estimated annual costs of running and maintaining a motorhome, they should be able to provide you with a breakdown of annual running costs. Check out our helpful guide on the cost of motorhome ownership.

Much like buying a car or other vehicle, it doesn’t hurt to find out if the price is negotiable. If you don’t ask, you don't get and you never know, you could save a little cash.

6 Options For Financing A Motorhome

Once you’re toying with the idea of motorhome ownership, you may be asking yourself ‘How hard is it to finance a motorhome?’. Finding your dream motorhome on a budget is possible. There are a wealth of options when it comes to financing your motorhome, all you need to do is find the one that suits you best. Here are 6 options for financing your motorhome.

1. Pay With Cash

Some of you may have the luxury of paying for your new motorhome outright, that’s great! Obviously, the major benefit of paying in cash is that you get to buy what you want when you want it. There’s no messing around with niggly back and forth communications with banks or other lenders, you’ll be on the open road before you know it. But, do consider that blowing your cash in one payment may restrict your spending power in other areas.

If you dream of a camper with all the trimmings or have plans to upgrade certain parts, appliances or the interior. It may be wise to put down a large cash deposit and work out a solution for paying off the remaining balance. This is a great way to stay cash-flow positive.

2. Mortgage Redraw

If you have a mortgage it may be possible to withdraw money you have contributed towards your home loan over the years. This is a great option for those of you that need an extra financial boost to afford your dream camper. Although a mortgage redraw may increase the life of your home loan and lead to higher interest payments over time. Speak with your mortgage adviser about all your options.

3. Bank Loans and Personal Loans

A bank loan may help to finance your new motorhome. Banks generally offer their own products and will normally be geared towards home loans and personal loans. For bank loan approval, you’ll likely need a good credit score. Your bank will analyse the risks attached to loaning you funds. Showing you’re a ‘good risk’ not only increases your approval chances, but it will also generally mean the interest rate on the loan will be lower. Banks typically offer secured loans, which can mean lower interest rates. Remember, Interest rates vary so do your research.

Alternatively, you may wish to take out an unsecured personal loan to help you pull together a deposit or secure cash to get a better deal upfront. An unsecured personal loan may have a higher interest rate than a bank loan but is likely to incur less interest than a credit card payment. You’ll want to be confident that you can make regular repayments as to not incur any additional fees, or end up paying more in interest than you loaned. Many personal loan providers offer finance online, so it pays to shop around to get the best deal.

With any type of loan, Your credit history, employment record, income and mortgage equity will all play a part in how much you can borrow. Make sure you do thorough research before deciding to get a personal loan.

4. Broker Finance

If you don’t fancy researching your loan options, then finance secured with a broker may be a good route. Brokers can arrange finance specifically tailored to motorhome buyers and process your application on your behalf. An increasing number of motorhome buyers are turning to finance brokerages to provide competitive interest loans. Reputable brokers have connections with trusted lenders like major banks and finance companies. This allows them to offer the best interest rate, comparing options from a host of Australia’s leading financial institutions.

You can call a broker or apply online – obligation-free - for a pre-approved personal loan. And whether you’re working full time or self-employed, these financiers can tailor repayment options to suit individual circumstances. Comprehensive motorhome insurance is also required on the motorhome for the duration of your loan. A broker can also help arrange insurance for your purchase. Be sure to ask your broker how they earn their fee, as it could be a factor in how they secure the loan for you.

5. Superannuation Redraw

After years of contributions, you may have a tidy nest egg tucked away for retirement. Some superannuation policies have the option to withdraw a lump sum which you could put towards purchasing your motorhome. Your new camper might just provide you with all the adventure you crave, enabling you to live your dream life in your home away from home. It may make sense to put your retirement fund towards something that will enable you to live your dream life in your golden years. Just make sure you have considered the financial implications of withdrawing money from your retirement fund and have a solid plan in place.

6. Dealer Finance

Much like car dealerships, most motorhome and RV dealerships can arrange loans for their customers through their preferred bank or finance company. In essence, the dealership will arrange everything for you but a third party (bank) will collect your repayments. The agreement is usually drafted separately through a third party. The dealer facilitates the financing of the motorhome so you don’t have to. This is a great way to pay off your camper in affordable payments with a trusted lender.

Many motorhome loans offer flexible repayment structures over one-year to seven-year terms, with no deposit and 100 per cent finance available depending upon your application details. Always consider interest rates, repayments structure, fees and insurance.

Is There A ‘Buy-Back-Price’?

While you're researching what motorhome or provider is right for you, keep your eyes peeled for a buy-back offer. A buy-back price is a great financial safeguard against unexpected financial hardship. Although it may be an unlikely situation, you’ll have peace of mind knowing your big purchase is protected. Some dealerships will enter into a contractual agreement in case of illness or tragedy in which they can guarantee a buy-back percentage based on the agreed value of the motorhome.

Get The Most Out Of Your Motorhome

Make sure you’ve covered all the bases so you can get the most out of your new home on wheels. Consider the warranty that comes with your new motorhome, this is a great indicator of the manufacturer’s faith in the product. Simply put, the longer the warranty, the better. For vehicles and dealers. You’ll be able to spot any trends in what people are saying about their own motorhomes. You can also reach out to other motorhome owners in online forums to ask any questions you may have. This will give you more authentic insights into life with a motorhome.

Get On The Road With Apollo RV Super Centre

Travelling around the country in a motorhome is a truly special experience. To get trusted advice on your motorhome purchase, talk to your local Apollo RV Super Centre dealer today. Best of luck with the search for your dream home away from home!

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