Owning a campervan is a dream for many, offering the freedom to explore the UK and beyond at your own pace and be part of the ever growing vanlife movement.
However, with prices ranging from £20,000 for basic models to over £100,000 for luxury conversions, financing is often the most practical way to make that dream a reality.
In this guide, we’ll explore the key campervan finance options available in the UK, typical terms and costs, leading providers, and essential considerations to help you make an informed decision.
Campervan Finance Options in the UK
The UK campervan finance market offers a wide range of flexible solutions for buyers of all budgets and preferences. From traditional hire purchase agreements to more modern financing models like personal contract plans, it’s crucial to understand how each option works.
Choosing the right type of campervan finance can affect your monthly payments, ownership terms, and long-term costs. Below, we’ve broken down the four most common finance methods in the UK to help you decide which one suits your lifestyle and financial goals.
1. Hire Purchase (HP)
Hire Purchase is a straightforward and widely-used method of campervan financing in the UK. With this option, you typically pay an upfront deposit (usually around 10% to 20% of the van’s value) and then make fixed monthly repayments over an agreed term. Once the final instalment is paid, the campervan becomes yours. Interest rates are fixed, offering predictable payments and helping with budgeting. Loan terms range from 2 to 12.5 years, and you’re free to use or customise the vehicle as you see fit.
HP is ideal for those who want eventual ownership and plan to keep their campervan for many years. Unlike leasing, there are no mileage restrictions or end-of-term inspections. Companies like Leisuredrive and Redline Campers offer HP with part-exchange options, making it easier to trade in an old vehicle. If you prefer a simple path to ownership, HP is a solid choice for campervan finance in the UK.
2. Personal Contract Plan (PCP)
A Personal Contract Plan is a flexible finance solution that offers lower monthly payments compared to HP by covering only the depreciation of the campervan during the term. You’ll pay a deposit, followed by regular instalments. At the end of the term, you can either return the vehicle, part-exchange it for a new model, or pay a final balloon payment to own it outright. This structure makes PCP a popular option for those who want flexibility without committing to long-term ownership from the outset.
PCP is well-suited to buyers who like to upgrade their campervan every few years or who want to keep their monthly costs low. Providers like CamperKing promote PCP as a way to stay protected against depreciation while enjoying the latest models. However, it’s important to note that you won’t own the campervan unless you pay the final balloon payment. Be sure to check the mileage limits and condition clauses that often come with PCP agreements.
3. Lease Purchase (LP)
Lease Purchase agreements are similar to PCP but with a key difference—ownership is mandatory at the end of the term. This means you’ll need to make a final balloon payment to complete the purchase. Monthly payments are lower than those of a standard HP agreement because a portion of the cost is deferred. LP is often used by individuals who want to reduce monthly costs in the short term but are committed to owning the campervan in the long run.
With Lease Purchase, you still need to pay a deposit and agree to fixed terms, but there’s no option to return the campervan at the end. This can be advantageous if you’re confident in your ability to pay the final lump sum. While not as commonly advertised as HP or PCP, LP is offered by some UK finance providers and can work well for those seeking a balance between low monthly payments and future ownership.
4. Personal Loans
Taking out a personal loan is another common route for campervan finance in the UK. You borrow a lump sum from a bank or lender and repay it in fixed instalments over a set term, usually between 2 and 7 years. One of the biggest advantages of this option is that you own the campervan outright from day one, giving you full control over how it’s used, maintained, or customised.
Personal loans are usually unsecured, meaning the campervan isn’t at risk if you default (though your credit score will be affected). Providers like Novuna Personal Finance offer competitive rates for borrowers with good credit scores, with APRs starting around 6.5%. This option is best for those who want ownership immediately and have the creditworthiness to secure low-interest rates. It’s also ideal for buyers purchasing from private sellers or those wanting to avoid finance tied to a specific dealer.
Typical Campervan Finance Costs and Terms
Understanding the typical costs associated with campervan finance is key to choosing the right plan. Interest rates in the UK generally start from around 6.5% APR for those with good credit, though they can go higher depending on your credit history, the loan amount, and the finance provider. Monthly payments vary greatly depending on the size of the deposit, length of the loan, and chosen finance product. Some providers allow terms up to 15 years, especially for high-value vehicles or specialist conversions.
For instance, borrowing £25,000 over five years at an interest rate of 7% could lead to monthly payments of around £495. Some finance providers require no deposit, while others may ask for up to 20% of the vehicle’s price. Choosing a shorter term will reduce the total interest paid but increase your monthly instalments. Longer terms are useful if you want to keep monthly payments affordable, though they often lead to higher overall costs. Comparing these elements will help you select a plan that fits your budget without surprises.
Leading Campervan Finance Providers in the UK
The UK market features several reputable providers that offer tailored campervan finance products. Each company has its own specialisms, rates, and terms, so comparing them is vital for getting the best deal.
1. CamperKing
CamperKing is a popular name in the UK campervan scene and offers HP, PCP, and LP agreements. Their flexible terms of up to 12.5 years and no-deposit options make them a favourite for first-time buyers. They also accept part exchanges, which can be helpful if you’re upgrading from a car or older van. Their in-house finance makes the process more streamlined when buying directly from them.
2. Leisuredrive
Leisuredrive focuses mainly on Hire Purchase finance with flexible terms ranging from 2 to 10 years. Their process is geared towards those looking for simple, long-term ownership with straightforward monthly payments. As one of the oldest names in the UK campervan conversion market, they offer a trusted and established approach to vehicle finance.
3. Pegasus Finance
Pegasus Finance is a specialist broker offering a wide range of finance solutions, including campervan loans from £10,000 to £350,000. Their terms extend up to 15 years, making them ideal for more expensive custom or luxury campervans. Rates start from 7.9% APR, and they can cater to buyers with various credit profiles. Their flexibility and range of lenders make them a great option if you’re comparing offers.
4. Novuna Personal Finance
Novuna is a well-known personal loan provider offering unsecured loans between £1,000 and £35,000. Their fixed-rate loans range from 2 to 7 years and can be used to purchase a campervan from a private seller or dealer. With rates starting at 6.5% for eligible applicants, Novuna is a solid choice if you prefer to keep things independent from the vehicle dealership.
5. Forward Motor Finance
Forward Motor Finance caters to a wide range of customers, including those with less-than-perfect credit. Their loan terms range from 2 to 10 years and they provide flexible arrangements designed to suit different income levels and credit scores. They’re a useful option for those who may struggle to secure funding from mainstream lenders.
Important Considerations Before Financing a Campervan
Before entering a finance agreement, there are several essential factors to weigh up. Firstly, your credit score will significantly influence the interest rates you’re offered. It’s wise to check your score and take steps to improve it before applying. Secondly, think about your deposit—while some providers offer no-deposit finance, paying a larger sum upfront can reduce your monthly payments and total interest paid.
Additionally, remember that ownership costs extend beyond the loan. You’ll need to budget for insurance, road tax, MOTs, servicing, and annual habitation checks. Some finance providers allow overpayments or early repayment without penalties, which can save money in the long run. Finally, align your finance choice with your long-term goals. If you plan to upgrade frequently, PCP might suit you better. If you’re committed to keeping the van, HP or a personal loan will offer more value in the long run.
Used Campervan Finance
Financing a used campervan is a popular and cost-effective option for buyers looking to get on the road without the price tag of a brand-new model. Most finance providers in the UK offer similar products—such as Hire Purchase, PCP, and personal loans—for both new and used campervans. However, some lenders may set minimum age or mileage limits, so it’s important to check eligibility criteria before applying.
Interest rates for used campervan finance can be slightly higher than those for new vehicles, particularly if you’re buying privately. That said, purchasing a used campervan from a reputable dealer can often unlock better rates, warranties, and access to in-house finance packages. It’s also worth noting that some brokers, like Pegasus Finance, specialise in arranging finance for second-hand vehicles, offering terms of up to 10–15 years depending on the loan size and campervan age.
Before proceeding, always have the campervan inspected, check its service history, and confirm whether it’s eligible for the type of finance you’re considering. Used campervan finance can offer excellent value if you choose a well-maintained model with strong resale potential and low depreciation.
Can I get Campervan Finance with Bad Credit?
Financing a campervan with bad credit is possible, though it may come with higher interest rates.
Some lenders, such as Forward Motor Finance, specialise in helping applicants with weaker credit profiles by focusing on affordability rather than credit score alone. You may also improve your chances of approval by offering a larger deposit or securing a guarantor.
Another alternative is asset-backed lending, which uses the campervan itself as collateral. This can sometimes be easier to secure than unsecured personal loans.
Importantly, consistent repayments can help rebuild your credit score over time, which may allow you to refinance under better terms in the future. If you’re considering this route, be sure to review all fees and charges, and avoid committing to repayments you may struggle to maintain.
Campervan Finance Deals
Campervan finance deals vary widely across the UK market, with seasonal promotions, dealer incentives, and manufacturer-backed offers regularly available. Many specialist dealers offer zero-deposit finance, reduced interest rates, or cashback incentives to encourage sales—particularly during off-peak months or at the end of financial quarters. For example, CamperKing and Redline Campers have been known to run limited-time deals such as deferred payments for the first three months or discounted APR rates on selected models.
Some finance deals are exclusive to particular models or stock vehicles, making them ideal for buyers who are flexible with their campervan choice. Others may include extras like free servicing, upgrades, or extended warranties when you finance through the dealership’s preferred lender. Keep in mind that while these deals can offer excellent value, it’s essential to compare the total cost of credit, not just the monthly payment or introductory rate.
To find the best campervan finance deal, shop around and check comparison websites, speak to multiple lenders or brokers, and always read the terms and conditions carefully. A deal that looks attractive upfront may have higher long-term costs, so focus on overall affordability and flexibility. Taking time to research available campervan finance offers can lead to significant savings over the life of your agreement.
Alternatives to Campervan Finance
If you’d prefer not to finance, there are other ways to access a campervan.
Buying outright with cash avoids interest and finance contracts, though it requires a significant upfront sum. Hiring a campervan is ideal for occasional trips, with no long-term commitment. You can also explore peer-to-peer lending or family loans, which may offer more flexible terms. Another option is saving over time with a dedicated account, especially if you plan to buy in the future rather than immediately.
Campervan Finance in Summary
Financing a campervan in the UK has never been more accessible. With flexible solutions like Hire Purchase, Personal Contract Plans, Lease Purchase, and personal loans, there’s a finance method to match every budget and goal. Whether you’re dreaming of full-time van life or weekend road trips, the right finance plan can help make it a reality.
By comparing options from various providers, you can secure the best possible deal.
Just remember to consider interest rates, terms, deposit requirements, and your long-term plans before committing. Armed with the right knowledge, you’ll be ready to hit the road in a campervan that fits your lifestyle—and your wallet.
