How To Offer Finance For Static Caravans

What finance really means at the point of sale

Offering finance for static caravans means giving customers a familiar, structured way to spread the cost over time through a regulated consumer credit agreement. In practice, it tends to resemble car finance more than property lending: a deposit upfront, fixed repayments over an agreed term, and a clear route to ownership. For your business, this is less about “discounting” and more about improving affordability and decision confidence. When the monthly figure is transparent, customers can focus on choosing the right model, spec and pitch, rather than delaying while they save.

Standout line: In this market, clarity beats persuasion - finance makes the cost understandable.

Why buyers lean on finance for static caravans

Static caravans sit in an awkward middle ground: they are aspirational, but they are also a significant cash purchase for many households. Deposits commonly start around 10% of the holiday home price, and many buyers choose 10-20% to bring repayments down. Because lenders typically assess affordability using personal income and outgoings (not hoped-for letting income), customers value predictable monthly payments they can support from their day-to-day budget. Where parks bundle extras such as site fees or maintenance into the package, finance can also make a “whole cost” figure easier to plan for.

How finance helps you sell more, not just sell cheaper

Offering finance can increase sales by removing the single biggest source of friction: the upfront cost. It reduces the number of customers who walk away to “think about it” or who downgrade their choice purely to meet a cash limit. It can also improve stock flow, particularly when you can finance both new and finance-ready used units (subject to lender criteria on age and condition). Just as importantly, finance supports a more professional buying experience: customers compare options, understand APR and total amount repayable, and make decisions faster when the numbers are laid out clearly.

Typical transaction values (illustrative)

Note: eligibility, deposit and term can vary by credit profile, caravan age/condition, and remaining park licence length.

What you can put on finance

1. New static caravans (base models through to premium upgrades)

2. Used static caravans (subject to age limits, condition checks, and lender criteria)

3. Optional upgrades (decking, glazing, furnishings, appliances)

4. Delivery and siting (where applicable)

5. Warranties and protection packages (where appropriate)

6. Park-sold bundles that may include certain fees or maintenance (ensure inclusions are explicit)

Regulation and getting it right (without killing the sale)

Static caravan finance is typically regulated consumer credit, so promotions and sales conversations must be fair, clear and not misleading. Be especially careful not to imply that rental or letting income will cover repayments, as lenders generally underwrite on personal affordability instead. Any figures shown should match the actual product and customer profile, with APR and key terms presented clearly. If you introduce customers to a broker or lender, your permissions, scripts and disclosures must align with FCA requirements and your agreed process.

Broker and introducer models: how it works commercially

Most parks and dealers do not become a lender. Instead, you introduce the customer to a finance broker (such as Kandoo) or directly to a panel lender, and the finance provider handles underwriting, documentation and regulated credit processes. In a broker-led model, the customer completes an application, a lender performs credit and affordability checks (often including a hard search), and then an offer is made subject to status. This approach is particularly useful in caravan sales because specialist lenders understand depreciation and constraints such as park licence length, which can influence maximum term and deposit requirements.

Next-step suggestion

If you currently take lots of “call backs” after quoting a price, add a “from £X per month” example (clearly labelled as representative) to encourage customers to progress to a formal quotation.

The customer journey, step by step

1. Qualify the enquiry: confirm whether the customer is buying new or used, approximate budget, and expected deposit.

2. Set expectations early: explain that this is consumer credit (more like car finance than a mortgage) and that affordability is based on personal income and outgoings.

3. Check the basics: confirm the caravan age/condition and the remaining park licence length to avoid mismatched terms later.

4. Provide a realistic monthly example: show deposit options (for example 10%, 15%, 20%) and how they affect repayments and total cost.

5. Introduce the finance application: the customer completes an application through the broker/lender journey.

6. Credit and affordability assessment: lender reviews credit history, income stability and existing commitments; self-employed applicants may need two years of accounts or tax returns.

7. Offer and acceptance: customer reviews APR, term, total amount repayable and any conditions, then accepts.

8. Complete the sale: confirm what is included in the financed package (especially if fees/extras are bundled) and finalise handover.

9. Aftercare: signpost who to contact for finance queries vs park ownership queries.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker, helping businesses offer customer finance in a way that supports conversion while keeping the process straightforward. Typically, we will understand your product range, price points and whether you sell new, used, or both. From there, we help you implement a compliant customer journey, including how you present representative examples and how you introduce customers for a formal quotation. The aim is simple: give customers a clear, credible route to monthly payments, while you stay focused on selling the right caravan, on the right pitch, with expectations set properly from day one.

Standout line: Understanding APR is not just about percentages - it is about knowing what your customer will pay in real terms.

Practical next steps

• Review your most common price bands and decide which deposit options you want to promote.

• Build a “finance-ready” checklist for used stock (age, condition, any warranty, and licence length).

• Add a scripted explanation that rental income should not be relied upon for repayments.

FAQs

Is static caravan finance a mortgage?

No. In the UK it is typically structured as a consumer credit agreement, similar in feel to car finance, with a deposit and fixed repayments over a set term.

What deposit do customers usually need?

Many packages start at around 10% of the holiday home price, and it is common for buyers to put down 10-20%. A larger deposit can reduce monthly repayments and the total interest paid.

What is the most common finance product for static caravans?

Hire Purchase (HP) is widely used because customers pay a deposit and fixed instalments, and then own the caravan outright at the end without a large balloon payment.

Can customers use a personal loan instead?

Yes. Personal loans can be a flexible option, particularly for used units or for buyers who want finance that is separate from the park. They should still budget for ongoing costs such as site fees, insurance and maintenance.

Do lenders take rental income into account?

Generally, no. Affordability is usually assessed on the customer’s personal income and outgoings, not projected letting income. It is safer to treat rental income as a potential bonus rather than a repayment plan.

Can used static caravans be financed?

Often yes, but lenders may apply age and condition limits. Some may expect inspections, warranties, or tighter terms to reflect risk.

Will customers get credit checked?

Yes. It is normal for lenders to review credit history and carry out affordability checks, and a hard credit search is common during application.

Why does park licence length matter?

Remaining licence length can affect the lender’s risk view and therefore the maximum term available. Shorter licences may mean shorter terms, higher deposits, or different pricing.

Do park finance packages ever include extras?

They can. Some park-based offers bundle elements like certain fees or maintenance into the amount financed. The key is to be explicit about what is included so the customer understands the total cost of credit.

Can specialist lenders offer competitive rates?

Specialist caravan finance providers can be competitive because they understand caravan-specific factors like depreciation and park constraints, and they often work closely with dealers and parks to streamline applications.