Campervan Finance Explained
Taking on Finance to buy a new campervan can be confusing. And you may hear lots of terms like balloon payments, APRs, and monthly instalments. So, if you’re unsure about the difference between PCPs and HP, let us help you understand the jargon.
Understanding Campervan Financing Options
When purchasing a campervan, there are two primary financing options: Personal Contract Purchase (PCP) and Hire Purchase (HP). Each option has its features and benefits, tailored to different preferences and financial situations.
1. Personal Contract Purchase (PCP)
PCP is a popular financing option for those who want flexibility and lower monthly payments. Here’s how it works:
Deposit: You pay an initial deposit, usually around 10-20% of the campervans price.
Monthly Payments: You make fixed monthly payments over a period (typically 2-4 years).
Guaranteed Future Value (GFV): At the end of the agreement, you have three options:
Return: You can hand back the campervan and walk away, provided you haven’t exceeded the agreed mileage and the vehicle is in good condition.
Keep: You can pay the GFV and keep the campervan.
Trade-in: You can use the campervan’s value towards a new PCP agreement.
Advantages: Lower monthly payments, flexibility at the end of the agreement, and the option to drive a new campervan every few years.
2. Hire Purchase (HP)
HP is a straightforward financing option that leads to full ownership at the end of the agreement:
Deposit: Like PCP, you pay an initial deposit.
Monthly Payments: You make fixed monthly payments over the agreed-upon term (usually 2-5 years).
Ownership: Unlike PCP, at the end of the agreement, you become the outright owner of the campervan.
Advantages: Clear path to ownership, no mileage restrictions, and no balloon payment required at the end.
Choosing the Right Option:
The choice between PCP and HP depends on your preferences and financial situation. If you prioritise lower monthly payments and enjoy changing vehicles frequently, PCP might be the better option. HP could be the way to go if you want to eventually own the campervan and prefer a clear path to ownership.
At Leisuredrive, we understand that navigating campervan finance can be overwhelming. Our team is here to help you make an informed decision that aligns with your needs and preferences. Contact us today to explore the financing options we can offer to buy a new campervan.
Understanding Key Terms:
Annual Percentage Rate (APR):
Balloon Payment:
Credit Agreement:
Credit History/Rating/Record:
Depreciation:
Equity/Negative Equity:
Financial Conduct Authority (FCA):
Fixed Rate:
Flat Rate:
Part-Exchange:
Residual/Resale Value:
Term:
Total Amount Payable:



Want to visit our showroom but live more than 100 miles away?
We love people coming to our showrooms and looking at new campervan conversions. That’s why we offer our clients a free overnight stay. Basically, if you live more than 100 miles away? It’s not a problem, we will credit you the cost of your night stay in a hotel when you make a purchase from us.