Financing a motor home or caravan

Wanderlust beckons, but corona pandemic puts a crimp in vacation plans. This makes it all the more attractive to make yourself independent with your own caravan, motor home or caravan and to travel with complete flexibility. With a loan, the motor home can be financed quickly and safely even without savings.

Independence and a high degree of flexibility – with a motor home or caravan, vacations are possible at any time and anywhere, whether for a short trip at the weekend or for an extended vacation tour through several countries. In 2020, according to the caravaning industrie verband, 1.3 million motorhomes were registered in germany, and the trend is upward. This is due in no small part to covid-19: vacations are more difficult due to restrictions and many are having to postpone their travel plans or are shying away from booking in these uncertain times. The purchase of a motorhome is all the more tempting.

Depending on your needs and demands, buying a motorhome with 30.000 to 200.000 euros. Depending on the model, the equipment is purist, comfortable or even luxurious. A well-equipped motorhome has a toilet, shower, satellite dish and television, which is clearly reflected in the purchase price. However, those interested in buying a caravan or motorhome should plan for additional costs for parking, insurance, maintenance and repairs. It should also be remembered that due to the corona pandemic, the demand for motorhomes is currently particularly high, which has a particular impact on the purchase of used vehicles. Before buying, it is important in any case to evaluate whether the caravan is used regularly and is therefore worthwhile.

Tips for buying a mobile home

In order to choose the right motorhome from the multitude of models and to avoid any unpleasant surprises after the purchase, buyers should consider a few things in advance. For example, the driver's license should be checked: driving licenses issued before 1999 allow the transport of vehicles weighing up to 7.5 tons. Who made his driving license after, may move only motor vehicles with a weight of 3.5 tons, people and cargo included. For heavier models a C1 driving license is required.

Before purchasing a motorhome, it is also important to plan and clarify exactly what equipment the motorhome will have. In view of the large investment, an impulse purchase is not advisable. Instead, it is worth taking a vacation with a motorhome in advance to determine your own requirements for the vehicle. If you have already decided on a model, you can borrow and test it or a comparable one before you buy it. This applies to both new and used purchases of a motorhome. The choice of the correct dealer is crucial, which is best in the proximity of the own domicile, in order to be able to clarify arising problems better and faster. The buyer should explain the vehicle in great detail and not be pressured into signing a contract. In the case of a used vehicle, other criteria such as damage, age and condition from the body to the interior, tightness, on-board technology, vehicle documents, environmental badge, TuV badge and warranty documents must be considered.

Caravan, caravan and co. Financing with a dealer or car loan?

But only when the right financing solution is found, it goes to the purchase of a motorhome. Given the high purchase price, suitable financing that takes into account the buyer's current financial situation is essential and several offers need to be compared. The effective interest rate can be used as a basis here, which indicates the actual total cost of the loan per year as a percentage. As a financing option, for example, a dealer financing or an installment loan in the form of an earmarked car loan come into question. Financing directly from the dealer is possible through a manufacturer-affiliated car bank with an installment loan, balloon financing, three-way financing or zero-percent financing. These options entice with constant and low monthly installments, but a down payment of 10 to 20 percent of the purchase price is required and the final installment is quite high. With zero-percent financing, which often applies only to certain car models or a certain promotional period, the low monthly installments distract from an often significantly more expensive purchase price. For buyers of a motor home, this results in higher costs and a greater financial risk in the long term. If the high final installments cannot be paid out of pocket, another loan may be necessary, with the interest rate being renegotiated. In order not to fall into the cost trap, financial professionals such as KVB finanz can be consulted, who have an eye on the financial situation of their customers as well as the numerous financing options with all their advantages and disadvantages.

Compared to dealer financing, an installment or car loan has the advantage that the cash discount remains in place. As a rule, sellers grant a discount of up to 20 percent for a cash payment. A car loan makes it possible to receive the borrowed money immediately and to use it for a cash payment within the shortest time possible. In addition, compared to dealer financing and a normal installment loan, an earmarked car loan is associated with more favorable terms, low monthly installments and low interest rates.

However, buyers of a motorhome do not always get a car loan on the best terms from their local bank. Here, too, financial experts such as loan brokers often have a better overview of which loan fits the needs exactly. Due to the large number of offers available to them, a higher degree of individualization is possible when choosing a suitable loan agreement than with house banks, which only draw on their own portfolio – this can save costs in the long term. Furthermore, credit brokers such as KVB finanz do not require a vehicle registration document as security. With many lenders, on the other hand, borrowers must deposit the registration certificate part II to prove that they have actually used the money for the earmarked car loan only for financing their motor home.

Find the right car loan and save money with KVB finanz

The financial experts at KVB finanz know that car financing with an independent provider is often more worthwhile than dealer financing. Using their experience, they will determine a customized financing option to fit the RV buyer's individual financial situation. If the customer has savings, it is possible to reduce the loan installments and shorten the term with a down payment. Without savings, the term is extended, but borrowers can benefit from lower monthly payments. The professionals of the KVB finance determine a suitable financing plan, which permits it to their customers to realize their dream of the caravan fast and surely, without being loaded by excessive credit conditions.