Motorhome Finance Rates 2026 — Updated October 2026
- Motorhome HP rate APR range (October 2026)
- 5.0%–7.5%Motorhome HP rate APR range (October 2026)
- VAT rate on new motorhomes — included in purchase price from dealer
- 5% VATVAT rate on new motorhomes — included in purchase price from dealer
- Typical maximum vehicle age for mainstream motorhome HP lenders
- 15 yearsTypical maximum vehicle age for mainstream motorhome HP lenders
- Typical minimum deposit for motorhome HP finance
- 15%–25%Typical minimum deposit for motorhome HP finance
Motorhome finance rates in October 2026 range from 5.0%–7.5% APR for hire purchase on new and used motorhomes valued at £30,000–£250,000. Motorhome finance is treated as standard asset finance by most specialist lenders — the vehicle age (typically accepted up to 15 years for mainstream lenders, up to 20 years for some specialists), condition, and make/model all affect the rate. New motorhomes attract 5% VAT (reduced rate) which must be factored into the total purchase cost and the deposit calculation.
Motorhome Finance Rates by Vehicle Value and Type — October 2026
Swipe the table sideways to see every column.
| Vehicle / value | Rate (APR) | Max term | Deposit required | Notes |
|---|---|---|---|---|
| New motorhome £30,000–£80,000 | 5.0%–6.5% | 7 years | 15%–20% | 5% VAT included in list price. Dealer finance vs specialist comparison recommended. |
| New motorhome £80,000–£200,000 | 5.0%–6.5% | 7–10 years | 15%–20% | Luxury specification. Specialist lenders for higher values. |
| Used motorhome £20,000–£50,000 (under 10yr) | 5.5%–7.0% | 5–7 years | 20% | Age within 10 years: mainstream specialist panel. |
| Used motorhome £50,000–£150,000 (under 15yr) | 5.5%–7.0% | 5–7 years | 20%–25% | Up to 15 years: specialist lenders. Condition inspected. |
| Used motorhome 15–20 years | 6.5%–9.0% | 3–5 years | 25%–35% | Very specialist panel. Higher deposit. Lower max term. |
| American RV / larger leisure vehicle | 6.0%–8.0% | 5–10 years | 20%–30% | Specialist lenders only. Import documentation required. |
| Campervan / converted van (T1–T6) | 5.5%–8.0% | 5–7 years | 20%–25% | Conversion quality and certification assessed. Campervans vary widely. |
What determines your rate
Dealer finance vs specialist broker — the comparison worth making
Motorhome dealers offer finance at point of sale — often through one or two preferred finance providers. The rate may not be the most competitive available for your profile. A specialist broker like DBF accesses a panel of motorhome finance lenders and presents the most competitive option across the market. On a £90,000 motorhome over 7 years, a 1% rate difference is approximately £3,300 in additional interest. The comparison is worth making before accepting dealer finance.
VAT on new motorhomes — the 5% reduced rate
New motorhomes benefit from a 5% reduced VAT rate rather than the standard 20% — a significant tax advantage versus most other vehicle types. The VAT is included in the dealer's listed price. When comparing new vs used motorhomes, this VAT differential affects the post-tax cost of buying new versus a 3–5 year old used vehicle (which has already absorbed the VAT cost). DBF models the post-VAT cost comparison for clients considering new vs used.
Age limits and the specialist lender panel
Mainstream motorhome finance lenders typically accept vehicles up to 15 years old. Above 15 years, the panel narrows to specialist lenders with higher rates and lower maximum terms. Vehicles above 20 years are very rarely financed on standard HP products — at this age, classic car finance approaches become more relevant. DBF advises on the most appropriate lender for each vehicle age.
Insurance requirement for motorhome finance
All motorhome finance lenders require comprehensive insurance in place from the date of drawdown. Motorhome-specific insurance (covering personal effects, European breakdown, awning and accessories) is recommended over standard motor insurance — lenders typically accept both, but specialist motorhome insurance provides better coverage for the vehicle's specific use. DBF advises on insurance requirements as part of every motorhome finance enquiry.
Worked cost example
Knaus Boxstar Street 600, 2024. New. Listed price: £89,950 (inc. 5% VAT). Dealer: Hampshire.
20% deposit: £17,990. Finance: £71,960.
Dealer finance offer: 7.9% APR over 7 years. Monthly: £1,118. Total interest: £21,952.
DBF specialist panel: 5.4% APR over 7 years. Monthly: £1,031. Total interest: £14,615.
DBF saving vs dealer finance: £87/month. Over 7 years: £7,337.
Additional costs: Insurance £1,680/year (specialist motorhome policy). Annual service (Knaus approved): £850/year.
DBF note: VAT of £4,284 included in purchase price — no additional VAT payable.
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The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
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Rate context and outlook
Bank Rate is 3.75% after the 17 September hold. Variable business facilities (revolving credit, invoice finance) move only with Bank Rate.
Fixed-rate hire purchase and leases are funded against swap rates, so some funders may nudge fixed pricing up after the September swap move. Quotes are typically held for 30 days.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
What are motorhome finance rates in October 2026?
New motorhomes: 5.0%–6.5% APR for values £30,000–£200,000. Used motorhomes (under 15 years): 5.5%–7.0% APR. Older vehicles (15–20 years): 6.5%–9.0% APR. Deposit: typically 15%–25%. Terms: 5–10 years for new, 3–7 years for used.
Is dealer motorhome finance the best option?
Not necessarily. Dealers typically offer finance through 1–2 preferred lenders and the rate may not be the most competitive for your profile. DBF accesses a panel of specialist motorhome lenders and presents the best rate for your specific vehicle and circumstances. On a £90,000 motorhome, a 1% rate difference is approximately £3,300 in additional interest over 7 years.
What VAT applies to a new motorhome?
New motorhomes benefit from a 5% reduced VAT rate (not the standard 20%). The VAT is included in the dealer's listed price and does not need to be paid separately. When comparing the cost of new vs used motorhomes, remember the used vehicle price does not include the current VAT component (it was absorbed when the vehicle was new).
Can I finance an old motorhome (15+ years)?
Yes — but the lender panel is narrower. Most mainstream motorhome finance lenders cap vehicle age at 15 years. For vehicles 15–20 years old, specialist lenders accept the vehicles at higher rates (6.5%–9.0% APR) and shorter terms. DBF identifies which specialist lenders accept older motorhomes.
Can I get motorhome finance as a self-employed person?
Yes — self-employed motorhome buyers are assessed on the same income evidence as for standard asset finance: SA302 or accounts for 2+ years. Sole traders, company directors, and LLP partners can all access motorhome finance through DBF's specialist panel. DBF identifies the most flexible lender for each self-employed income structure.
Can a new business get finance?
Yes, though many funders want 1–2 years of trading or a larger deposit; directors' personal credit matters more for young businesses.
Is VAT charged on hire purchase?
On HP, VAT is paid upfront with the deposit and can usually be reclaimed; on leases it is added to each rental.
What is a balloon payment?
A larger final payment that lowers the monthly cost; you pay it, refinance it or return the asset, depending on the product.
Do I need to put down a deposit?
Usually 0%–20%, depending on the asset, its age and your trading history.
Where this applies
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533