Campervan Finance Options: HP, PCP and Loans Compared

Very few people buy a campervan for cash. The most common ways to pay in the UK are hire purchase (HP), personal contract purchase (PCP) and an unsecured personal loan, with personal contract hire (PCH) as a no-ownership alternative. Each suits a different situation.

Hire purchase (HP)

With HP you borrow the full price and own the van outright once the last payment is made. Monthly payments are higher than PCP because you're paying down the whole balance, but you're building equity from day one. Typical rates for a used campervan are around 7-11% APR depending on your credit. HP suits buyers who keep a van for a long time.

Personal contract purchase (PCP)

PCP has lower monthly payments because you only pay off part of the value; a guaranteed final payment - the balloon - is due at the end, and you then either pay it to own the van, hand it back, or part-exchange it. PCP is popular for newer vans but comes with a mileage allowance, and the balloon often makes it the most expensive option over the full term. If you plan to keep the van long-term, PCP rarely works out cheapest.

Personal loan

A personal loan from a bank or credit union is often the most flexible option: you own the van outright immediately and can sell it whenever you like. Rates on a £20,000-£40,000 loan are typically 5-9% APR, so it's frequently cheaper than HP or PCP over the same term, especially on used vans.

Personal contract hire (PCH)

PCH is essentially a long rental - you never own the van. Monthly costs are lower than buying, but there's a mileage cap and you hand the van back at the end. It makes sense for people who want a new van every few years and don't mind never owning one.

1. Compare the total cost, not just the monthly figure - a low payment often means a bigger balloon or longer term.
2. Factor in a deposit; most plans expect 10-20%.
3. Check early settlement fees and what happens if the van is written off.
4. Read the small print on excess mileage and condition charges.

Which option is cheapest?

For most used campervans, a personal loan is the cheapest way to borrow, while PCP keeps monthly payments low on newer models. Whichever you choose, the van's running costs still apply - budget for them with our running costs guide.

Never borrow more than the van is worth. If the finance balance exceeds the resale value, you're in negative equity from the day you drive away.

See what campervans for sale currently cost before you set a finance budget.