Motorhome Money Matters

Strikes and ash clouds have made it a sombre start to the summer already for many, but as well as providing a more pleasurable holiday experience, few people realise that choosing a used motorhome also makes sound financial sense too.

The tax rises in the budget means people are now watching their spending more than ever and Peak Leisure Vehicles can provide holidaymakers with a cost-effective way to keep their holiday plans on track. A standard holiday abroad can wind up costing thousands of pounds, even for a seemingly short break away and Peak Leisure Vehicles aims to give motorhome owners the better long term solution they have been searching for.

Choosing a used motorhome provides many financial advantages, since they are a cost-effective, long term investment, with no VAT, cheap insurance and excellent retained values. Once seen as the preserve of the rich and for retirement couples cashing in on their pension funds, the availability of affordable quality used motorhomes, coupled with the rising popularity of the ‘staycation’ has seen a marked increase in motorhome ownership in recent years.

With used vehicles available for under £10,000, a whole new generation of purchasers have discovered that a motor home is not just for the rich and retired and need not cost the earth. Used vehicles incur no VAT and the bulk of the depreciation costs all fall on the unfortunate original purchaser. People often see this as a sign that motorthomes decrease greatly in value, but the fact is after the initial first depreciation from new, motorhomes retain their value extremely well.

"Customers bringing in a used motorhome to trade up for a bigger model, are always surprised how little value their current motorhome has lost," said director Claire Parsons. "They are fooled by the initial big depreciation suffered by the first owner, and tend to assume this will apply to them too. But used motorhomes hold their value very well and will only loose 2-3 thousand pounds a year on average, which makes them a sound investment. When you consider the lack of VAT and cheap insurance too, a motorhome makes real financial sense."

Running costs is another area where motorhomes are key winners and not least in terms of insurance. Many people who buy their first motorhome rush off to their usual car insurer and can receive a very big quote. Yet motorhomes are very cheap to insure if you know how to go about it and Peak Leisure Vehicles make a point of passing on their knowledge to their customers.

"Most first timers make the mistake of calling their current car insurer first," warned Claire. "The trick is to approach a dedicated motorhome insurer to get a quote. Once we put customers onto this they are often stunned by the difference in the quotes. Motorhomes are not cars but specialist vehicles and going to a dedicated insurer makes all the difference in terms of cost."

Finally, it is important to consider the cost saving made by choosing a used motorhome against a new one. All used motorhomes by their nature tend to be very low mileage and in superb condition, particularly when bought from the original purchaser and this is the policy of Peak Leisure Vehicles. Buying from the original owner means you can take off the bulk of the depreciation that was incurred the moment the new model drove off the forecourt and with no VAT to pay, you can save between ten and twenty thousand pounds on the cost of a new motorhome.

The true price of starting with a used motorhome is difficult to estimate, because much depends on the make and model bought, but if people factor in £190 for tax and anywhere between £250-£400 for insurance buyers will be on the right track. With vehicles available from Peak Leisure Vehicles for as little as £8,0002, you can be driving away a used vehicle for less than £9,000 on the road – a massive saving against new.

"With tough times ahead people are starting to compare the cost of the family holiday with the cost of a motorhome and are pleasantly surprised," added Claire. "With the cost of the average family holiday for 4 costing £2,700 or more1, it’s no surprise that we are seeing increasing numbers of enquiries and with the staycation trend set to continue, motorhomes make the most sense when it comes to money."

ENDS


Notes to editors:

1: Figures taken from The Guardian, 31 August 2004, "Survey reveals true cost of holiday abroad". The actual figure was £2,725, over £1,600 more than a comparable holiday in Britain. These costs are said to have risen considerably since this survey, and these price raises tie in with the rise in popularity of the ‘staycation’ and the motorhome.

The Mail, (16th June 2008) estimated the average cost at £6,000. See: www.dailymail.co.uk/travel/article-609253/Cost-family-holiday-soars-hundreds-pounds.html
There are many more examples of research showing similar trends.

2. Prices vary with the motorhomes Peak Leisure Vehicles has in stock and is subject to change. Details correct at time of issue.


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Ref: PLV0026 – Motorhome Money Matters