Offer finance for caravans and motorhomes

Why Offer Finance for Caravans and Motorhomes?

Caravans and motorhomes have become increasingly popular in recent years, with more people seeking the freedom and flexibility of holidaying on their own terms. However, these vehicles come with a significant price tag, which can often be a barrier for potential buyers. Offering finance options for caravans and motorhomes is a practical solution that allows customers to spread the cost of their purchase, making it more affordable and accessible.

As a business owner or dealer, providing finance options can not only attract more customers but also help boost your sales. In this article, we'll explore the benefits of offering finance for caravans and motorhomes, how it works, and how Kandoo, a UK-based retail finance broker, can assist you in offering competitive finance solutions to your customers.

The Growing Demand for Caravans and Motorhomes

The popularity of caravanning and motorhoming has surged in recent years, particularly as more people have sought out "staycations" or holidays within the UK. According to industry reports, the sale of new and used caravans and motorhomes has seen a marked increase, with many individuals and families opting for this style of holidaying due to the flexibility, cost-effectiveness, and sense of adventure it provides.

However, despite the growing demand, the upfront cost of purchasing a caravan or motorhome can be prohibitive. Depending on the make, model, and features, the price of a new motorhome can range from £40,000 to well over £100,000. Even used caravans and motorhomes can cost several thousand pounds. For many customers, paying such a large sum outright is simply not feasible.

This is where offering finance options can make a significant difference. By providing a way for customers to spread the cost over time, you can make their dream of owning a caravan or motorhome a reality. But how exactly does caravan and motorhome finance work?

How Caravan and Motorhome Finance Works

Caravan and motorhome finance operates in much the same way as finance for cars or other large purchases. Customers are offered the opportunity to borrow the money needed to purchase the vehicle, with the loan then repaid over an agreed period, typically ranging from one to ten years. This allows customers to enjoy their new caravan or motorhome immediately while spreading the cost into manageable monthly payments.

There are several types of finance products that can be offered for caravans and motorhomes, including:

1. Personal Loans

Personal loans are a popular option for customers looking to finance their caravan or motorhome. These loans are typically unsecured, meaning that the customer does not need to use the caravan or motorhome as collateral. Personal loans can offer flexible terms and competitive interest rates, making them a good choice for many buyers.

2. Hire Purchase (HP)

With a hire purchase agreement, the customer pays a deposit upfront, typically around 10% of the vehicle’s value, and then makes monthly payments over an agreed term. The customer does not own the caravan or motorhome until the final payment is made. Once the final payment is completed, ownership of the vehicle transfers to the customer. This type of finance is secured against the vehicle, so if the customer fails to make payments, the vehicle can be repossessed.

3. Personal Contract Purchase (PCP)

PCP is similar to hire purchase but offers lower monthly payments. This is because a large portion of the vehicle’s value is deferred until the end of the agreement, known as a "balloon payment". At the end of the term, the customer can either make the balloon payment to own the vehicle, return the vehicle, or trade it in for a new one. PCP can be a good option for customers who want to keep their monthly payments low or who like to change vehicles every few years.

4. Leasing or Contract Hire

Leasing allows the customer to use the caravan or motorhome for a fixed period, usually between two and five years, in exchange for monthly payments. At the end of the lease term, the customer returns the vehicle. This option is suitable for those who may not want to own the vehicle but want to enjoy its use for a certain period.

Benefits of Offering Finance for Caravans and Motorhomes

Providing finance options for caravans and motorhomes offers a range of benefits for both your business and your customers. Here are some of the key advantages:

1. Increased Sales and Customer Reach

Offering finance allows you to reach a wider audience. Customers who may not have been able to afford a caravan or motorhome outright can now consider purchasing one through affordable monthly payments. This can result in more sales, higher customer satisfaction, and greater loyalty to your business.

2. More Flexible Payment Options

By offering various finance products, you can provide your customers with flexible payment options that suit their individual needs and circumstances. Whether they prefer a personal loan, hire purchase, or PCP, giving them the ability to choose the best option for their financial situation can improve their overall buying experience.

3. Higher Average Transaction Value

When customers have the option to finance their purchase, they may be more inclined to choose a higher-spec or more expensive model than they would if they were paying upfront. This can lead to a higher average transaction value, ultimately boosting your bottom line.

4. Improved Cash Flow for Your Business

When you offer finance through a third-party provider like Kandoo, you receive the full purchase price of the vehicle upfront, even though the customer is paying in instalments. This improves your cash flow and allows you to reinvest in your business or stock new models.

5. Competitive Advantage

In a competitive marketplace, offering finance options can set you apart from other dealers or sellers who may not provide the same level of flexibility. Customers are more likely to choose a dealership that offers a range of payment options, making finance a valuable selling point.

Kandoo: Your Partner in Offering Caravan and Motorhome Finance

When it comes to offering finance for caravans and motorhomes, partnering with a reputable finance broker is essential. Kandoo, a UK-based retail finance broker, specialises in helping businesses offer flexible and competitive finance options to their customers. Whether you’re a caravan dealer, motorhome retailer, or a private seller, Kandoo can help you provide a seamless and hassle-free finance experience for your customers.

How Kandoo Can Help

Kandoo works with a panel of trusted lenders to offer a wide range of finance products, including personal loans, hire purchase, and PCP. By partnering with Kandoo, you can:

• Offer Competitive Rates: Kandoo works with multiple lenders, ensuring that your customers receive competitive interest rates and finance terms.
• Provide Flexible Finance Options: Whether your customers are looking for short-term or long-term finance, Kandoo offers a range of options to suit their needs.
• Quick and Easy Application Process: Kandoo’s online application process is simple and user-friendly, allowing customers to apply for finance quickly and receive a decision in minutes.
• Tailored Solutions for Your Business: Kandoo understands that every business is unique, which is why they offer tailored finance solutions to meet your specific needs and goals.

Benefits for Your Customers

When your customers finance their caravan or motorhome purchase through Kandoo, they can benefit from:

• Affordable Monthly Payments: With a range of finance options, customers can spread the cost of their purchase over time, making it more manageable.
• No Hidden Fees: Kandoo prides itself on transparency, with no hidden fees or charges in their finance agreements.
• Access to Trusted Lenders: Kandoo works with some of the most reputable lenders in the UK, giving your customers peace of mind that they are receiving a fair and competitive finance deal.

How to Get Started with Kandoo

If you’re interested in offering finance for caravans and motorhomes through Kandoo, the process is straightforward. Here’s how to get started:

1. Contact Kandoo: Reach out to Kandoo to discuss your business needs and learn more about the finance options available.
2. Set Up Your Finance Offering: Kandoo will help you set up your finance offering, including providing the necessary tools and resources to promote finance to your customers.
3. Start Offering Finance: Once everything is in place, you can start offering finance to your customers, helping them make their dream purchase a reality.

Conclusion

Offering finance for caravans and motorhomes is a smart business move that can help you attract more customers, increase sales, and provide a better overall buying experience. By partnering with a reputable finance broker like Kandoo, you can offer competitive and flexible finance options that meet the needs of your customers while boosting your business’s success.

With the growing popularity of caravanning and motorhoming, now is the perfect time to explore the benefits of offering finance and making these dream vehicles more accessible to your customers. Whether you’re a dealer or private seller, Kandoo can provide the support and expertise you need to offer a seamless and competitive finance solution.