The average house price in the UK has increased 9.8 per cent since 2021, putting home ownership out of the reach of many young people.
As a result, static and touring caravans and motorhomes are proving popular places to live.
Now, Shane Spence of Sell The Caravan has offered advice on the things to consider before purchasing a leisure vehicle as a residence.
Create a budget
The first step in the process is to decide on a budget as this will influence the size, model and make of the caravan you’re interested in.
Think about the options surrounding deposits, financing and buying a caravan or motorhome outright to come to the best decision for your circumstances.
Mr Spence said: “There are a range of financing options available to help you buy a static caravan and spread the cost over a period of time.
“In fact, static caravan finance is a common way to purchase a holiday home. When buying a static caravan simply ask the sales representative about static caravan financing options.”
Understanding caravan finance
Caravan financing works in the same way as other loans, meaning the lump sum is paid back over a period of time, usually in monthly instalments.
There are three ways it can be arranged:
- A personal loan
- A secured loan
- A hire purchase agreement
Does VAT apply to buying a caravan?
VAT will appear separately on the invoice for your caravan, but will be included in the overall purchase price.
The seller is responsible for ensuring that VAT is paid and the current standard rate is 20 per cent of the cost of the unit.
Caravan purchase protections
Caravans bought with finance come with the same rights under UK law associated with buying anything on credit.
All hire purchase agreements are fully regulated and offer additional security to buyers.
Photo credit: Sarah Doffman
