Your Guide to Financing a Camper Van

Why This Guide Matters

Owning a camper van is a dream for many. The freedom to explore the countryside, escape for impromptu weekends, or embark on extended adventures appeals to families, retirees, and solo travellers alike. But with purchase prices ranging from £25,000 to well over £80,000, buying a camper van outright is often beyond reach for most. That's where finance comes in.

Navigating the world of camper van finance can be daunting. With several products available—each with its own intricacies—it's crucial to understand your options before committing. The right finance arrangement can mean the difference between manageable monthly payments and unexpected costs. This guide is designed to equip you with the knowledge you need to make confident, informed choices, so you can focus on the open road ahead.

The Basics Explained

Financing a camper van typically involves borrowing money to buy the vehicle and repaying it over a set period, usually with interest. Here are the main types of finance available in the UK:

• Hire Purchase (HP): You pay a deposit (usually 10%), followed by fixed monthly payments. Ownership passes to you after the final payment.
• Personal Contract Purchase (PCP): You pay lower monthly payments with an optional final balloon payment if you wish to own the vehicle at the end.
• Personal Loans: Unsecured loans from banks or building societies, which you can use to buy the camper van outright.
• Leasing: You pay to use the camper van for a fixed period, after which you return it. Ownership is not transferred.

Each option has pros and cons in terms of deposit size, monthly cost, flexibility, and ownership. It's important to compare not only the monthly payments but also the total amount payable over the term, including any fees and interest. Understanding Annual Percentage Rate (APR) is key—this reflects the real cost of borrowing, factoring in interest and all compulsory charges.

How It Affects You

Choosing the right finance arrangement will shape your camper van experience. For example, Hire Purchase provides a straightforward route to ownership, with predictable payments and no final lump sum. This can offer peace of mind if you intend to keep your camper van for years.

PCP often means lower monthly payments, which can free up cash for travel or upgrades. However, the large optional payment at the end can be daunting, and there may be mileage restrictions or charges for excessive wear if you return the van instead of buying it.

Personal loans offer the flexibility of outright ownership from day one, but approval depends on your credit history, and rates can vary widely.

Leasing might appeal to those who want a new van every few years and aren’t concerned about ownership. However, you’ll never build equity in the vehicle.

Your choice will also affect insurance requirements, resale options, and long-term costs. It’s essential to weigh how each product aligns with your lifestyle, travel ambitions, and financial stability.

Our Approach

At Kandoo, our role as a retail finance broker is to help you navigate these choices. We work with an extensive panel of UK lenders to offer a variety of finance products tailored to your needs.

Our process begins with understanding your personal circumstances—credit history, budget, and long-term goals. We then present you with clear, jargon-free comparisons of suitable finance options, highlighting:

• Total cost of borrowing: Including interest, fees, and final payments
• Flexibility: Options to overpay, settle early, or refinance
• Eligibility: Which lenders are likely to approve your application based on your profile
• Transparency: No hidden surprises—just clear facts

We also advocate responsible lending. Before recommending any product, we ensure you understand affordability, potential risks, and your legal rights. Our support doesn’t end once your finance is agreed: we remain available for advice throughout your agreement, should your circumstances or plans change.

“Understanding APR isn’t just about percentages—it’s about knowing what you’ll pay in real terms. We break it down so you can make informed decisions.”

This commitment to clarity and customer care is central to our service. We believe that with the right information, you can enjoy the freedom of camper van ownership without financial uncertainty.

Before You Decide

Before choosing a finance product, take a step back and consider the following:
• Budget: What can you comfortably afford each month, factoring in insurance, maintenance, and running costs?
• Usage: Will you use your camper van year-round or just for occasional trips?
• Ownership goals: Do you want to eventually own the vehicle, or is access to the latest models more important?
• Credit rating: Your credit score will influence the rates and products available to you.
• Deposit: How much can you put down upfront?

It’s also wise to get pre-approved or at least check your eligibility before shopping for a van. This helps set realistic expectations and strengthens your bargaining position with dealers. Remember: never feel pressured into a finance deal you don’t fully understand.

What’s Real, What’s Hype

The camper van market is buzzing with offers—0% finance, guaranteed approvals, and “buy now, pay later” deals. While some are genuinely competitive, others come with hidden terms or higher overall costs. Be wary of offers that seem too good to be true.

Always scrutinise the small print. Ask dealers for a breakdown of total costs, including all fees, over the full term. Don’t be swayed by low monthly payments if they depend on a large balloon payment or restrictive conditions.

A credible finance broker will prioritise transparency and your best interests—not just the sale.

Pros & Cons

Option	Pros	Cons
Hire Purchase (HP)	Clear path to ownership; fixed payments	Higher monthly cost; deposit required
PCP	Lower payments; flexibility	Final payment; mileage limits
Personal Loan	Immediate ownership; flexible use	Credit approval; variable rates
Leasing	New van every few years; low upfront	No ownership; return conditions

Consider what matters most to you: is it lower monthly payments, eventual ownership, or flexibility to upgrade?

Other Options to Consider

If traditional finance doesn’t suit your circumstances, there are alternative routes to funding a camper van:
• Savings: Using cash reserves avoids interest and keeps monthly outgoings low, though it may deplete your emergency fund.
• Credit Cards: Some buyers use 0% purchase cards for part of the deposit, but this is only advisable if you can repay before the promotional rate ends.
• Peer-to-Peer Lending: Online platforms may offer competitive rates, especially for those with good credit profiles.
• Remortgaging: Some homeowners consider releasing equity to fund major purchases, but this significantly increases risk.
• Family Loans: Borrowing from relatives can be flexible, yet it’s wise to set clear terms to avoid misunderstandings.

Each alternative comes with its own risks and benefits. Take time to compare all costs and implications before making a decision.

FAQs

Can I get camper van finance with poor credit? Yes, some lenders specialise in helping those with less-than-perfect credit histories. Expect higher interest rates and stricter affordability checks. A broker can help you find suitable options.

What deposit do I need for camper van finance? Most lenders require at least 10%, though some may accept less. A larger deposit typically means lower monthly payments and a better chance of approval.

Are there age limits for financed vehicles? Yes. Many lenders set maximum age limits for used camper vans, often 10–15 years old at the end of the agreement. Newer vans are easier to finance.

How long can I finance a camper van for? Terms usually range from 2 to 7 years. Longer terms mean lower payments, but higher total costs. Consider the balance between affordability and overall expense.

Can I settle my finance early? Most agreements allow early settlement, though you may incur fees. The total interest payable may be reduced if you repay early.

Does finance affect insurance? Yes. With HP or PCP, the lender may require comprehensive insurance. If the van is written off or stolen, you must still repay the finance.

Can I use the camper van abroad? Many finance agreements allow European travel, but check the small print. Some require advance notice or restrict time abroad.

What happens if I miss payments? Missed payments may lead to additional charges, affect your credit rating, or result in repossession. Contact your lender immediately if you face financial difficulty.

Next Steps / Call to Action

Ready to take the next step towards your camper van adventure? Start by reviewing your budget and credit profile. Compare finance options carefully and seek independent advice if needed. At Kandoo, we’re here to make the process straightforward—so you can focus on planning your journeys, not worrying about the paperwork. Get in touch today for tailored, transparent advice on financing your camper van dreams.