Caravan Finance Calculator
Know your numbers before you walk onto the forecourt. Start from the caravan price or from what you can afford each month. PCP and hire purchase sit side by side, so you see the full cost, not just the monthly payment. Taking a personal loan instead? The hire purchase figures show what a loan at the same APR and term would cost.
ABU is not a finance provider or broker. This tool gives illustrative estimates only. Speak to a finance specialist before you make a purchasing decision.
Illustrative estimates based on your inputs. APR is converted to a monthly rate and fees are not included. PCP is shown over a maximum of 60 months, with the final payment set as a percentage of the caravan price. Lenders set their own final payment values, rates and eligibility. Always speak to a regulated finance adviser before you sign a finance agreement.
The Monthly Payment Is Not the Price
Dealers sell on monthly figures. Lenders profit on the total. Here is the same £25,000 caravan with a £5,000 deposit and a 9.9% APR, financed three ways.
| Finance | Monthly | Final payment | Total credit charge |
|---|---|---|---|
| HP over 48 months | £502.25 | None | £4,107.80 |
| PCP over 48 months | £351.62 | £8,750.00 | £5,627.69 |
| HP over 120 months | £258.55 | None | £11,025.59 |
Stretching HP from four years to ten halves the monthly payment. It also almost triples the interest.
So which number are you being sold?
PCP or HP: Which Fits How You Tour?
Start with one question. Will you keep this caravan for ten years, or change it in three?
- Hire purchase (HP). Fixed monthly payments, no final payment, and you own the caravan when the last one clears. Suits buyers who plan to keep it.
- Personal contract purchase (PCP). Lower monthly payments because part of the cost is deferred to an optional final payment. At the end you pay it and keep the caravan, hand it back, or part exchange. Suits buyers who change caravans every few years.
PCP looks cheaper each month. Over the term it usually costs more in interest, because you are paying interest on the final payment the whole time.
Four Numbers That Move Your Repayments
- Deposit. Cash plus any part exchange. The more you put down, the less you borrow and the less interest you pay.
- Term. Longer terms lower the monthly figure and raise the total cost. Check the table above.
- APR. One percentage point on a £20,000 loan over five years adds roughly £530 to £550 in interest. It is worth shopping around.
- PCP final payment. A higher final payment lowers the monthly figure, but you still owe it at the end.
Before You Sign
- Ask for the total amount payable in writing, not just the monthly figure.
- Compare the APR you are offered with the representative APR. They are not always the same.
- On a used caravan, check the lender's age limit at the end of the term.
- On PCP, ask how the caravan's condition is assessed if you hand it back.
- Know your exit routes. You can settle early at any time, and under the Consumer Credit Act you can hand the caravan back once you have paid half of the total amount payable.
Touring or Static?
This calculator is built for touring caravans. Static caravan and holiday home finance often comes through the park itself, with longer terms and rates often quoted as a flat rate rather than an APR. Use the static caravan finance calculator instead.
For Caravan Dealers
Buyers arrive with their numbers already worked out. Link to this calculator from your stock pages and finance page. It is free, independent and shows total cost, which earns trust before the price conversation starts.
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Caravan Finance FAQs
Is a caravan loan the same as caravan finance?
Not quite. With a personal loan, you own the caravan from day one and the loan is not tied to it. With hire purchase or PCP, the lender owns the caravan until the final payment, but you gain the right to hand it back once you have paid half. The monthly maths for a loan and HP at the same APR and term is the same, so use the HP figures for a loan.
How is caravan finance calculated?
Take the caravan price, subtract your deposit and any part exchange, and you have the amount borrowed. The lender then spreads that sum, plus interest at the APR, across the term. With PCP, part of the amount is held back as an optional final payment, so the monthly figure is lower.
What is the maximum term for caravan finance?
It depends on the lender. Black Horse, one of the largest UK caravan lenders, offers hire purchase from 12 to 120 months and PCP from 12 to 60 months. This calculator follows the same limits.
What APR should I expect on caravan finance?
Rates vary by lender, the amount you borrow, the term and your credit record. A representative APR is the rate at least 51% of accepted applicants receive, so you may be offered more. Put the APR from your actual quote into the calculator to see what it costs you.
Can I get finance on a used caravan?
Yes. Most caravan lenders finance used touring caravans as well as new ones. Many set an age limit on the caravan at the end of the agreement, so ask the dealer or lender before you settle on a term.
What happens at the end of a caravan PCP?
You have three choices. Pay the optional final payment and keep the caravan. Hand it back and walk away, subject to its condition. Or part exchange it for another caravan, using any equity towards the next deposit.
Can I end my caravan finance early?
Yes. You can ask the lender for a settlement figure and pay off the balance at any time. Under the Consumer Credit Act, you can also hand the caravan back on HP or PCP once you have paid half of the total amount payable, provided you have taken reasonable care of it.
Does a bigger deposit lower the total cost?
Yes. Every pound of deposit is a pound you do not borrow, so you pay less interest as well as a lower monthly amount. Try the calculator with two deposit levels and compare the total credit charge.
Is this calculator a finance quote?
No. It gives illustrative figures based on what you enter. Lenders add their own fees, set their own final payment values and check your credit before they make an offer.