How to Offer Finance for Motorhome Sales

Why Offer Finance for Motorhomes?

Motorhomes represent a significant investment for most buyers, often costing tens of thousands of pounds. By offering finance options at the point of sale, dealers can:

• Increase sales conversions by making purchases more accessible
• Boost average order values
• Cater to a broader customer base
• Remain competitive in a dynamic marketplace

"Finance solutions don’t just open doors—they drive sales through them."

Types of Finance Available

When offering motorhome finance in the UK, dealers typically provide:

1. Hire Purchase (HP)

• Fixed payments over an agreed period (usually 1–7 years)
• Customer owns the vehicle after the final payment

2. Personal Contract Purchase (PCP)

• Lower monthly payments
• Customer can choose to purchase, return, or part-exchange at term end

3. Personal Loans

• Customers borrow from a lender for a lump sum
• The vehicle is owned outright from day one

Step-by-Step Guide: Setting Up Customer Finance

1. Register with the Financial Conduct Authority (FCA). All UK firms selling regulated finance products must seek FCA authorisation or become an Appointed Representative of an authorised firm.
2. Choose your finance providers. Partner with reputable lenders experienced in the motorhome sector.
3. Integrate finance options into your sales process. Use point-of-sale (POS) finance solutions or online calculators for customer convenience.
4. Train your team. Ensure staff can explain products clearly and follow compliance rules.
5. Promote finance availability. Highlight this across your website, showroom, and marketing materials.

Key Regulations and Compliance

Must-Know Points for Dealers

• FCA Regulation: Selling finance without authorisation is illegal.
• Disclosure: Customers must understand their agreement, repayments, and any fees.
• Affordability Checks: Ensure finance is affordable and appropriate for the customer.
• Advertising Rules: Finance promotions must be clear, fair, and not misleading.

❗ Important: Keep records of all quotes, conversations, and signed documents for compliance audits.

Common Pitfalls to Avoid

• Failing to properly explain key terms (like balloon payments on PCP)
• Using misleading APR figures in advertising
• Overlooking staff training, leading to non-compliant sales
• Not regularly reviewing partnerships with finance providers

"Clarity and compliance protect your business and your customers."

How Finance Helps Your Motorhome Business Grow

Dealers who offer finance typically see:

• 20-30% higher sales conversion rates
• Shorter sales cycles
• Improved customer satisfaction and loyalty

Tips for Effective Finance Integration

• Use online eligibility checkers for fast approvals
• Offer clear, jargon-free literature to customers
• Monitor and update your lender panel annually
• Gather feedback on your finance options for continual improvement

Frequently Asked Questions

Q: Does offering finance cost the dealership money?
Not usually. Lenders pay you a commission or introducer fee. Always disclose any commissions to customers as per FCA rules.

Q: What paperwork is involved?
Proposals, identity documents, signed agreements, and finance disclosure documentation. Digital solutions can streamline this process.

Q: Can customers use their own lender?
Yes, though offering on-the-spot finance gives you a competitive edge and can speed up the buying process.

"Motorhome buyers often expect flexible finance—but only well-informed dealers can deliver it seamlessly."

Ready to Offer Finance? Take These Steps!

• Check your FCA permissions status
• Research and select suitable lenders
• Design and promote your finance process
• Train your team in both compliance and customer service

Need expert guidance setting up motorhome finance solutions? Contact Kandoo today to start your journey!