A guide to financing your caravan

What are the main optionsFinancing your caravan

  • Hire Purchase (HP)
  • Personal loans
  • Secured Loans or mortgage advances
  • Personal Contract Purchase (PCP)

Always check three things with any finance deal:

  • How much are the monthly payments and any additional payments at the end or start of the deal
  • How much interest are you paying in total and over what period
  • What are the options and penalties if you want or need to come out of the deal

Hire Purchase

This type of loan is generally secured by the caravan which means that you don't actually own the caravan until the last payment is made. Other conditions such as keeping the caravan in good order and fully comprehensive insurance are often conditions.

In terms of re-payment you pay a deposit for the caravan and make regular monthly payments until the debt is repaid. HP is offered widely at dealerships and they will earn a commission from the finance company for each one sold.

We advise you to check the APR which by law they have to tell you. The higher the APR generally the worse the deal. However, the best way to compare is to calculate how much you pay back as sometimes HP can be very expensive.

Also if you wish to sell you caravan and early redeem your HP don't expect to only pay the interest for the time as often these deals have all the interest loaded at the front i.e. you pay the interest first and the amount you borrowed.

Personal Loans


These used to be called bank loans except now you can buy them pretty much anywhere - supermarkets, banks, building society and the internet.

You simply tell them how much you want to borrow, its not attached to a car so you can sell the car when you want. You pay back what you borrow and interest. Again compare providers by the APR and what you pay them back.