Keith Gooden
In today’s episode of the Motorhome Matt podcast…
Matt Sims
We unpack the changes in getting motorhome finance in light of the changing economics of buying a leisure vehicle.
Keith Gooden
And in the news, a new hydrogen canal boat has been out of the water.
Matt Sims
We answer your questions on using AdBlue and a question from New Zealand on keeping your toilet fresh with biochemical.
Keith Gooden
Welcome to the Motorhome Matt podcast. I’m Keith Gooden.
Matt Sims
And I’m Motorhome Matt.
Keith Gooden
Industry insights and expert advice for the world of motorhomes, caravans and campervans. And it’s brought to you by www.thatleisureshop.com.
Matt Sims
And remember to follow on your favourite podcast app and subscribe to us on YouTube, sponsored by www.arobasecreative.co.uk.
The Caravan and Motorhome Show starts this week
Keith Gooden
Okay – in the news, the NEC Caravan Camping and Motorhome show, Matt, 2024. It’s the 13th to the 18th of February and of course, if they come along on Valentine’s Day, you’ll give them a free kiss and a sticker.
Matt Sims
You keep promising a kiss! The sticker, yes. So if you’re listening to the podcast, come and grab one of these. Keith’s donning one very proudly here on his right breast. He’s very proud of that. I’ll put one on the other breast in a minute. That would look quite funny.
So come and grab a, “Listening to the Motorhome Matt podcast,” sticker. You can be a sticker nicker, as Keith would say. The show runs from the 13th to the 18th of February. Yes, it is Valentine’s Day. I’m on the Leisure Vehicle Advice Centre throughout the show, stand 3120, every day.
Keith Gooden
And That Leisure Shop and Maypole are there at the show, stand 1062.
Matt Sims
Yes, if you need covers, electrical stuff, handy Maypole products for your motorhome, caravan or campervan, go and see the guys on stand 1062. And also, That Leisure Shop is there with Crespo and Bo-Camp, stand 4180 with some of our favourite outdoor living accessories and essentials.
Keith Gooden
Matt’s going to be there, there’s plenty to see, plenty to buy – be a sticker nicker and get your sticker. Put it on any part of your body you so desire. Take a photograph of it. And you never know, we might give you a prize if it’s interesting or daring enough.
Matt Sims
Really? Where are you putting yours?
Keith Gooden
It’s a secret.
Matt Sims
A secret? Yes, I would keep it a secret. You can get tickets for the show at www.ccmshow.co.uk. And if you use the code MATT, you can save a few pennies on your ticket price.
Keith Gooden
Fantastic.
A new hydrogen canal boat has been on the water
Keith Gooden
Now in the news, Bramble Energy’s an innovator and disruptor in fuel cell technology. They’ve achieved a milestone in marine history. Now, I know it’s a boat. But these things do feed through to the motorhoming and caravanning pastime as well.
That milestone in marine history is launching – get it? – the world’s first hydrogen electric boat. It’s powered by a printed circuit board fuel cell. So it’s burning hydrogen. And of course the emission from burning hydrogen is…
Matt Sims
Water.
Keith Gooden
So the question is, Matt, how far can it get?
Matt Sims
600 miles, apparently, according to the news article we read.
Keith Gooden
That’s a long way.
Matt Sims
That is a long way. I mean, that’s at four miles per hour.
Keith Gooden
And that’s 600 miles with 14 kilograms of hydrogen on board.
Matt Sims
That’s not very much.
Keith Gooden
It’s not very much at all, is it?
Matt Sims
That’s like a big gas bottle.
Keith Gooden
So I’m presuming the hydrogen is liquefied?
Matt Sims
Yes, I’m guessing so.
Keith Gooden
And you burn it as a gas?
Matt Sims
Yes. And additional power is being supplied by solar panels on the boat’s roof to the 22 kilowatt hour battery system. That’s a big battery. So yes, this is not exactly going to be directly implementable into a VW campervan. That’s for sure.
But yes, certainly, it’s an interesting development. This was on www.vanlifematters.co.uk, which is a great news board, by the way. It’s really good. It’s interesteing to see – hydrogen. Will it be part of our future?
Keith Gooden
And the key here is old time hydrogen vehicles, even the experimental buses with a huge balloon on the top to store the hydrogen, that’s all gone now. It’s liquefied in a tank and you can treat it like you do practically any other fuel. Hydrogen, of course, is highly combustible. But as I said before, the emissions are just water.
Matt Sims
Well, as we were talking last week about Calor’s vision for not burning stuff and using their renewable gas, this is another alternative. Of course, the issue is infrastructure, isn’t it? So where can you go and top up your hydrogen gas bottle, your hydrogen cell? That’s a problem.
But this is a journey we’re on. And I think it’s a fascinating time to see how innovators and small businesses create products like this. I don’t know how big Bramble Energy are, but I get the impression they’re a small risk taker and an innovator and they’re an entrepreneurial business.
And when we were back at the Düsseldorf show last year, it was the smaller businesses that we saw taking the risks and being innovative. Bigger manufacturers just weren’t in the game. And I suspect what we’ll see is these smaller innovators making these changes, creating this opportunity, and then a big player will come in to sweep them up and off we go mainstream.
Keith Gooden
And in the last couple of weeks, of course, in the news, there’s been a large deposit of natural hydrogen found in France. The thing with hydrogen has always been the manufacturing of it. But if you can get it out of the ground as hydrogen, that saves you a lot of money. And like I say, they found a big deposit in France.
Matt Sims
Interesting. That’s the French government rubbing their hands together, then.
Keith Gooden
Zut alors! Hydrogen!
Matt Sims
We have ze gaz!
What challenges have faced those applying for motorhome finance?
Keith Gooden
It’s the Motorhome Matt podcast. I’m Keith Gooden.
Matt Sims
And I’m Motorhome Matt.
Keith Gooden
And it’s brought to you by www.thatleisureshop.com. Now, let’s get into the main part, the main topic of this week’s podcast. It’s to do with motorhome finance. And this has been big news in the last few years because interest rates shot up, didn’t they?
Getting financed became more difficult. Instead of taking a 15 year loan, people then had to take a 20 year loan, so you are paying more for longer or paying the same amount per month but adding five years to it and paying for longer. And so we’re going to be talking about that today. And you’ve got somebody, an expert, who you can get all the latest from, haven’t you?
Matt Sims
Yes. So it’s all about the money. So I thought I would go to an expert and a specialist supplier to the leisure vehicle market. Creative Funding Solutions supply finance to motorhome buyers, caravan buyers, horsebox buyers, and in fact they’re in a range of marketplaces. They’re in trucks and lorries as well.
So transport is their specialist area. And Steve Blake is their sales director, and he has a real focus on the motorhome industry and a real insight into what’s been changing. And as you say, prices have been going up. Interest rates have been going up. There’s a great phrase – for many of us, there’s too much month at the end of the money. So how do we afford this stuff?
You know, £500 a month used to get you £40,000. Does it still do that? And is £40,000 enough? If the motorhome’s now £80,000 where it was £60,000, you’re putting a lot more into it. And that stretch is a big one. Not everyone’s got the deposit. So how has the motorhome finance industry been responding to this change?
How has motorhome finance changed during the cost of living crisis?
Steve Blake
The leisure vehicle industry has seen huge increases in the cost of units for some time now, as I’m sure the consumer is well aware. Funders have responded. We have got longer term finance options available now compared to what we would have had, say, 12 or 18 months ago.
That can make the monthly budget a little more affordable, particularly on some of these, you know, six figure very expensive motorhomes. Whereas in the past, the maximum period someone could take finance over as a consumer would have been a 10 year term, 120 month finance on motorhomes.
We now have up to 15 year terms, which clearly takes the pain to some extent out of the monthly rental for the customer. On campervans, we’ve also got extended periods as well, because new campervans, you know, you can see £70,000 £80,000 plus. They’re not cheap assets by any means.
What terms can you get for motorhome or campervan finance?
Matt Sims
So what term can you borrow over for a campervan conversion?
Steve Blake
We’ve got 150 months. So that’s 12 and a half years available. Not quite as long as motorhomes, which is, as I say, 15. But it’s another two and a half years on top of what we had before. For some people that could be make or break from a budget point of view.
Matt Sims
Yes. So that will impact the monthly payment, i.e., bring it down. Of course, it means you’re going to pay more over the term, doesn’t it, if you ran it for the whole term, which few of us do.
Steve Blake
It would indeed. I think the situation with most customers is that they are monthly payment driven, like we are in life on mortgages or whatever it may be. You know, you budget on a monthly basis. But the longer you borrow money for, yes, the more expensive it is when you’re looking at the total amount payable. And that goes for any finance borrowing.
Matt Sims
So the fact you’re able to and you’re happy as an industry extending the term means you must be confident about the residual value of the motorhome when it turns 15 years old. There is still a value to it. There must be a good appetite, then, for the motorhome as a product still from your industry.
Steve Blake
100%. I think if we look at residual values, they may be helped by COVID even more so, but the residual values on leisure vehicles has remained extremely strong for a long time now.
Matt Sims
And of course, we’re not just faced with the windscreen prices going up. And we’ve seen significant increases – 30% or 40% in some cases. When we last met, interest rates are on the climb. They’re now sort of coming back down again.
Steve Blake
Yes. The cost of funds has definitely sort of softened. We obviously had that long run of Bank of England hikes. I think this year the general consensus or the general opinion is that we’ll see a slightly more stable climate, so rates will probably stay where they are now, you would have thought.
I mean, who can predict in the longer term? It’s an election year as well, which often suggests that there’s not going to be too much activity which is going to be hurtful to the consumer. There’s certainly been a levelling off, shall we say, of the rate.
What is a regulated finance agreement?
Matt Sims
So Steve, just help our listeners understand – what is a regulated agreement? This is a term you use a lot in your industry, that it’s consumer credit regulated. What does that actually mean for the consumer?
Steve Blake
So a regulated agreement regulated by the Consumer Credit Act will be for a consumer only. Because it’s regulated, there are certain benefits to the customer to take a regulated agreement, i.e., there’s very set rules on early settlement of the finance and very strict parameters that all funders have to work with.
So just to be very clear, this is consumer, private individuals. A sole trader customer would also count as a regulated financial agreement, usually, but a joint application, Mr. and Mrs. Smith, for example, would be a regulated agreement. So any consumer deal excluding limited company, or business finance, which is not regulated.
Matt Sims
So the big benefit here for the consumer is if you settle early. So we’re talking about a 15 year term. I don’t know anyone who’s owned the same motorhome for 15 years. In reality, you’re going to take finance for 15 years to get the monthly down. But you’re probably going to sell it after two or three years. But you can do that with a regulated agreement, can’t you? There are penalties, which are regulated as well. But you can settle early for a small fee. Just explain that for me a bit more.
Steve Blake
It’s calculated on a sliding scale in terms of the interest charges. And there is a penalty. If it’s a regulated agreement, it’s the same with all hire purchase agreements. Personal loans would come under this category as well.
The customer would pay a fixed amount depending on factors like how much they borrowed, of course, what the rate was, and what period in the agreement, importantly, they’re looking to settle. But it’s a calculation which the Consumer Credit Act dictates and all regulated funds – and this is the key – all regulatored funders have to abide by that settlement. So it’s not a case of, “I may try this funder. They may give me better terms.” It’s fixed.
Matt Sims
But some funders work in a different way when you settle early. So I know I can put up to £8,000 into a fund to pay off a chunk of it. But isn’t it the case that the lender can choose whether that reduces my monthly payment, or they reduce the term? Is that under the control and at the whim of the lender?
Steve Blake
To some extent, but I suppose the advantage of working with a broker with a number of funders like ourselves is that we know which funders have which rules. So you’re right in saying some funders would perhaps only look to reduce the monthly payments if you settled early, or part settled early.
Some might look to reduce the term but keep the monthly payment the same. And some funders – in fact, probably the majority now – allow the flexibility for the customer to do either of those.
But if that’s an important thing for the customer at the start of the agreement, knowing that two or three years down the line, they may want to part settle and for example, they wanted to make sure the monthly payment was reduced, we would make sure we went to that funder before the start of the agreement and took the finance there.
Clearly, we’d need to know that from the customer upfront, which is an important thing for us because we like to speak to the customer. So hopefully during our negotiation, we understand that.
Matt Sims
So it’s important that as a consumer, if I’m borrowing this money, I understand how I’m going to utilise it going forward, and if I intend to clear it early or clear a piece of it early, it’s clear what I want to happen to that lend. Do I want the monthly to come down? What’s my agenda for paying off a piece of it early?
Steve Blake
Yes. So that’s the key question there. A customer will want a budget. If they know they’re coming into chunks of money at a given period of time going forward, they need ideally to tell us upfront.
Most of the funders now, as I say, will give you the option of reducing a monthly payment or reducing the term. Anyone listening to this who wants to give us a call on that, we can have that conversation with them and we can make sure we choose the appropriate funder.
Matt Sims
Yes. And that’s the benefit of working with a brokerage like yourselves. You have access to a massive panel of lenders, don’t you.
Steve Blake
Correct.
Matt Sims
How many lenders do you have at your disposal?
Steve Blake
We’ve got over 50. They’re not all for the leisure space, because there’s a number of other things we do within our business. But we’ve certainly got a strong panel of lenders for leisure vehicles which we can call upon.
Can you finance a converted campervan?
Matt Sims
We touched on campervan conversions earlier, and they’re a product we’ve seen a huge boom in the growth in this marketplace. It’s almost the case on every street corner there’s somebody converting a van into a campervan. But you can lend on those as well.
They don’t have to be built in a factory or have to be NCC approved. We’ll unpack that in another episode and what that means. But you can lend against a vehicle to someone who’s maybe built three a year. That’s right, isn’t it?
Steve Blake
Some of the funders we work with will only fund campervans that come off the production line as a campervan. So say the VW California, for example. But we also have funders that, providing we get an order form for the vehicle and they can see the conversion work that has been done, can fund a retrofitted a vehicle, if you like, that’s come off the factory floor as a van and has been converted. We can fund those over extended periods as well.
Matt Sims
Even if it has been a van for five years and then converted to a campervan?
Steve Blake
If the quality is good and it’s a converter that the funder and we are happy with – you know, we will do things like look at Google reviews and make sure that it’s a converter that is known or reputable. We get a feel for these. There are many mid-size converters, I would say, that convert a number of vehicles a year. For us, they’re fine in the main, and we have got options.
Can you get finance on a lodge or static caravan?
Matt Sims
What was interesting at the Manchester show was that we were hanging out in some of the lodges that were there. We were talking to Hayden at North Wales Resorts, and their lodges are amazing. Beautiful.
And there were guys there as well from campsites which had these huge lodges, these kind of static homes. And this is a booming part of our industry. And it seems to be the case, these guys were explaining to me, that a lot of people who are in a motorhome are getting to a stage of life where they want to sell the motorhome and have a static. You can lend on those as well.
Steve Blake
We can, yes. We’ve got several different options. For holiday lodges and statics, we’ve got hire purchase options. As you alluded to, some of these can be incredible money, these holiday lodges. You know, £150,000, £200,000 plus for some of these things.
We can do longer term secured lending on those to the customer, for example. This isn’t a product for everybody. But we have a number of customers who take it. We can secure lending against their main residential premises. So providing they’ve got equity in their residential premises, we can fund a holiday lodge over a longer period.
Matt Sims
What if you want to sell the bricks and mortar and move into the lodge full time?
Steve Blake
No. So the the offering for our holiday lodges and static homes is not… the customer cannot be moving into it as their permanent residential abode. They have to have other premises for that to work. There are various laws behind that. But it’s not one for our panel of funders. But anything which is for recreational use or holiday purposes is no problem whatsoever.
What is a non-regulated finance agreement?
Matt Sims
And we talked about regulated agreements. Let’s just quickly talk about non-regulated agreements. So you were saying that a regulated agreement needs to be in a person’s name. I want to set up a motorhome hire business, so I’m going to go and buy a motorhome and put it on hire.
I’ve set up a limited company, and I’m going to put the motorhome in that, and I put the finance in that. Or somebody wants to buy the motorhome and put it through their building business as an expense to their business. That becomes a non-regulated agreement, doesn’t it? Just very quickly, Steve, explain what people need to be aware of if they’re considering doing that, because it’s a very different lend, isn’t it?
Steve Blake
It is a different lend. Two aspects there. So non-regulated finance, more often than not, is for a limited company. Generally the terms on offer are shorter – five, sometimes up to seven year finances on offer, possibly with a balloon as well, if required.
A factor that we would take into account, particularly if you’re doing longer term finance, is the settlement. Early settlement parameters are not as favourable. With most funders. it’s far more penal to settle a non-regulated agreement early. So that’s certainly something to take into account.
Matt Sims
I can vouch for that. I caught a cold with that once.
Steve Blake
Yes. This is where the conversation with the customer is important. We make it very clear what the circumstances were. In terms of a new start hire business, motorhome hire or campervan hire, we’ve got lots of funders. Hire is quite specific.
Some funders don’t like hire because of obvious reasons – the vehicles are out with many different individuals. It’s a bit more high risk for the funder. Where are the vehicles, you know? But from our point of view, yes, we can fund hire companies and we do fund hire companies in the leisure space.
We also fund hire companies in lots of other sectors that we work with as well. Really, all we need is the details of the company. We would want to see the hire agreement as well that the customers would sign, just to make sure that’s fairly watertight on the terms and conditions. Lending to companies that wish to hire vehicles is no problem whatsoever.
Matt Sims
But the key is if you’re putting the finance in the name of a limited company, it is automatically a non-regulated agreement. And you need to be very informed on the penalties of settling that early. So choosing the right term is critical, isn’t it?
Steve Blake
Absolutely. There’s a trade-off, I suppose, there. You can take a very short term agreement and it’ll be paid in full within, say, a two year period. However, the monthly payments may look unattractive.
What I would say is, if you know they’re only going to be usable as a hire vehicle for two years, don’t take out a five, six or secen year agreement. There perhaps is a trade-off between the two there. Yes, you might be penalised on settlement, but as the business is getting up and running, the monthly payments may be more affordable over a slightly longer period. That’s a conversation to have with the customer.
Matt Sims
And that’s the key, isn’t it?
Matt Sims
That’s something, I have to say – I’ve worked with you guys for years and motorhome.finance. You’ve got a secret weapon in your office called Nicola, who is your wife! She’s amazing. And she once said to me that she tries to speak to every customer, which I still find incredible.
Steve Blake
She does. She doesn’t have much time to speak to me, but yes!
Matt Sims
That’s why she does it, Steve! She keeps busy. That’s why you’re still married. “What’s your secret?” “I work a lot.” But she does engage everyone in conversation.
Steve Blake
She does. And to be fair, it’s not just Nicola. All our other guys who work with our leisure vehicle customers, but other sectors as well, we try to keep it personal. You could argue it’s perhaps a little bit old school in terms of an approach, but it’s one that we like, and we have lots of repeat customers off the back of it.
Matt Sims
Maybe it’s old school. I think it’s unique. And I love it. And I think it’s what sets you guys apart. So yes, my hat’s off to you all. And thank you for doing that – it makes all the difference. And of course, the broader offering – you have the brand motorhome.finance, which is part of Creative Funding Solutions. You do cars as well, don’t you? So not only do you fund the caravan, you’ll fund the car towing it!
Steve Blake
100%. Yes, we’ve got lots of funders on cars, hire purchase, PCP, which is Personal Contract Purchase with a balloon payment. I’m sure many of your listeners and viewers will be familiar with a PCP on cars. It keeps the monthly payments down. It’s a guaranteed future value at the end of the finance where they have options. But again, if people want to speak to us, we’re more than happy to give them some information on our car options.
Finance for motorhome hire companies
Matt Sims
But it’s not just the consumers you’re serving, is it? You’re now working with a lot of motorhome and car dealers too, aren’t you?
Steve Blake
With the great panel of funders that we’ve got, we can and we do work with a lot of dealers. Customers come in, they’re looking for finance options. There’s one or two names out there in the industry which have been long standing in leisure vehicle finance. With the options we’ve got, we can really make it work for the dealer.
Some of the dealers, or in fact most of the dealers, like the personal approach that we’ve just talked about. With some funders, the dealer has to just place details into a computer system and the computer says yes or no.
We’re more than happy to take the call from the dealer saying, “Can you please phone the customer? These are their details. This is what they’re buying. Can you just own the process from here? Basically, just let us know when the finance is in place.”
Matt Sims
Yes, take the hassle away.
Steve Blake
And we’re more than happy to do that. And for dealers who are busy wanting to find more time to sell motorhomes and campervans and caravans, that’s often welcome.
Matt Sims
Yes, it definitely is. And it’s all about the relationship. That’s the bit that you guys really prioritise. And I’ve always appreciated that for myself and also with our customers.
Is finance now necessary with price increases on motorhomes?
Matt Sims
So Steve, tell me, motorhome prices are rocketing up, climbing up high. Interest rates have climbed. Okay, they’re settling down a little bit. Does this mean that people are queuing up for finance because they can’t afford the motorhome otherwise? Or are they shying away from it and thinking, “It’s just all too expensive,”? Have you got big queues at your stands when you go to the shows? Or is there, you know, tumbleweed passing by?
Steve Blake
Probably somewhere between the two! The truthful answer is yes, we’re still busy. I think the prices are the prices, and I think people’s expectations perhaps move with those prices. And now they can see the longer term options available.
We’re as busy as ever on finance on these assets. Because of the extra term lending we’ve got now I don’t see that slowing down anytime soon. And obviously, lead time is a factor for new vehicles, which is perhaps why some people are looking to later used vehicles purely because of supply. But no, we’re certainly still very busy.
Matt Sims
So just quickly on the used bit, the 15 year term is subject to a motorhome not being older than 20 years old at the end of that term, isn’t it? It’s important people understand that.
Steve Blake
Yes. There’s some variation with funders on that, but as a maximum, I would say 20 years old at the end of the term. So a 12 year old vehicle now, for example, can be funded over an eight year term, etc. But yes, in broad numbers.
Again, it depends on the age of the vehicle, and that will be part of the conversation we’d have with a customer. We look at the age, how long they want to fund it over, and then we drive that deal down the most appropriate path.
Matt Sims
Of course.
How long do finance proposals last?
Matt Sims
Steve, you allude to lead times. And that’s been a massive issue in our marketplace, as you well know. And if I want to buy a Fiat Ducato with an automatic gearbox, nobody can tell me how long it’s going to be.
So finance proposals only last a certain time, don’t they? So if I come to you today and say, “Steve, I want to buy this £75,000 motorhome. I’m going to put £25,000 in, but I need to borrow the rest.” How long is that offer going to last for? Because I might not see that motorhome for over a year.
Steve Blake
Good question. The answer is, with consumer funders, most of them it’s 30 days. So in effect, the approval will be long expired by the time the vehicle turns up. However, in 99% of cases, unless there’s been a fundamental change in the customer’s circumstances to the detriment of the customer, we just seek a re-approval closer to the time.
And clearly in terms of the interest rate as well, that would only be governed for 30 days. And if 11 months down the line the vehicle is ready, then it would have to be at whatever’s suitable for the prevailing rate at the time.
Matt Sims
Which might have gone up or gone down.
Steve Blake
Indeed, so that’s one to consider. But obviously, with cost of funds variations, there’s no funder who’s going to hold the pricing for a year or more, obviously.
Matt Sims
So for someone listening or watching who’s thinking of ordering that motorhome which might take six months or a year, is it worth them getting a proposal approved in principle now?
Steve Blake
I think so. Because clearly, that means that they’re approved. They can go speaking to dealers with certainty that the finance is in place. Then they will know what the budget is. And they’ll know, “I’ve got this much budget a month over this number of months. Well, I can go to these stands or I can go to these dealerships and look for vehicles up to this sort of level of screen price.”
Matt Sims
So they know what they can or can’t afford.
Steve Blake
Yes, definitely. And they know they’re over the line with the finance. Although, as you say, there might be a long lead time, I think it’s certainly better to know that the finance is completely approved at that point.
Matt Sims
Yes. And there is a calculator on your website, isn’t there?
Steve Blake
There is indeed. It’s nice and easy. There’s a calculator, and the customer then can go to fill in the full details for a full proposal, which comes onto our systems and we get someone to call them if they want to take that next step as well.
Matt Sims
And there’s no obligation on the calculator. You just put the numbers in and it gives you an indicative answer.
Steve Blake
Absolutely. It’s on a sliding scale. They just put the amount they want to borrow, the term they want to borrow over, an indication as to their credit rating – of course, not every customer knows that. But it’s enough to give them a guide. And then if they wish to apply then we can obviously have the finer detail on the conversation.
Matt Sims
And where can people find that calculator, Steve? What’s the website?
Steve Blake
It is very simply www.motorhome.finance.
Matt Sims
Easy. www.motorhome.finance.
What can consumers expect to see with finance in the future?
Matt Sims
Steve, one last question. Are there any nasty surprises, do you think, on the horizon that consumers need to be aware of? You’ve said this is an election year. Interest rates have been very turbulent on the climb. They’re starting to normalise. Are we in for any nasty surprises? Or is stability going to be the theme this year?
Steve Blake
In my personal opinion, I think stability is likely to be the key this year. I’d be very surprised if we see huge amounts of pre-election rate increases. Screen prices, who knows? With the supply, you know, there could be some nasties in terms of the front end prices. But if you’re asking me specifically from the finance front, I can’t see anything which is going to lead to too many issues in the near term, at least.
Keith Gooden
That’s Steve Blake, the sales manager at Creative Funding Solutions. Interesting what he’s saying there, Matt, because obviously, he wants to lend and get the interest back. They’ve got to be in business. It’s not good business for them turning people away, is it?
Matt Sims
No, of course not. But the great thing for any financier is the residual values of motorhomes. So we’re finally seeing some stability back in the market. And that gives confidence. So for a lender, they are interested in what’s the motorhome going to be worth in three, five, 10 or 15 years’ time?
They want to know that it’s worth more than you owe them. Otherwise, they’re coming after you for the difference! And motorhome residual values are staying strong and there is no sign of them dropping. Lots of people are wishing they would, particularly those who are in the market for a 12 year old motor home. It’s just not happening.
New ones are becoming more and more expensive. So that becomes a bigger challenge for people wishing to borrow to buy one. But the residual staying strong means the market stays stable. And we so desperately need that to happen. And it’s interesting that financiers are seeing that as well and have confidence therefore to lend.
So yes, it’s a challenging time. That whole statement again, too much month at the end of the money. Lenders are always very focused on your affordability. The FCA made sure that those rules were really enforced and that we’re not over borrowing, we’re not over stretching ourselves. That’s really key.
So my advice is if you’re considering finance for your motorhome, then shop around. Make sure you pick a lender who understands this market. Yes, you can borrow money from any high street lender. Even supermarkets are now lending money as well, aren’t they?
But that may not be the right route for you. So definitely shop around, take the offer given to you by the dealership you’re looking to buy the motorhome from, but consider others as well. And there are many lenders like Steve and his team who will be able to help you. So go and talk to a few people.
Keith Gooden
Absolutely. Remember that they want you to borrow the money. So they’ll do their best within the guidelines to make sure it’s affordable for you.
Audience Q&A
Keith Gooden
It’s the Motorhome Matt podcast. I’m Keith Gooden.
Matt Sims
And I’m Motorhome Matt.
What do I need to know about AdBlue?
Keith Gooden
It’s brought to you by www.thatleisureshop.com. It’s our Q&A, our questions and answers. Matt’s the expert, you ask the questions – if he doesn’t know, he’ll get somebody who does. Claire is in Wakefield and she says, “Hi, Matt and Keith, what are your thoughts on AdBlue?” This is this stuff that you add, isn’t it, to cars? What does it do?
Matt Sims
It’s an additive. So it’s a lubricant, and it brings the emissions of your vehicle down.
Keith Gooden
Right. She says, “I’m aware of it but don’t know when I should be topping up. I watch a lot of YouTubers and some go as far as to take it with them and top up while on trips. Do I just wait for the vehicle to tell me it wants some or top up when I fuel up? Thank you for an amazing channel full of informative content.”
Matt Sims
Bless you, Claire. That’s very kind. Thank you very much.
Keith Gooden
… stickers…
Matt Sims
And stickers. Always be a sticker nicker. So Claire, AdBlue is an additive that goes into many newer vehicles. I think now all Fiat, Peugeot, Citroen and Ford chassis require it. You top it up next to the fuel filler cap by the passenger door, or wherever your fuel filler cap is. But that’s generally where they are.
And you can carry it with you. I’d recommend you do. When the light comes on, you’ve probably got between 1,000 and 1,500 miles left to go. The risk is you don’t stop it up and it runs out, that little AdBlue tank runs out. Your engine will cut out. It won’t work without it.
So it’s really important that you top it up before you get to the end of the tank. And the dashboard will tell you. If you don’t top it up, you’re gonna get an annoying ding every time you start the engine and that annoying little light telling you that the AdBlue level is low, so it’s worth topping up if only for that reason. You know AdBlue is often rumoured to be made out of pigs’ urine. Did you know that?
Keith Gooden
Pigs’ wee-wee?
Matt Sims
Yes, exactly. Peppa Pig had a wee. But it’s not true. It’s not true. This rumour comes from it being 32.5% urea.
Keith Gooden
Yes, which you do get from urine.
Matt Sims
Yes, but why pigs?
Keith Gooden
I don’t know.
Matt Sims
Why not goats? Are pigs easier to catch?
Keith Gooden
Why not aardvarks?
Matt Sims
We’ve got loads of those around.
Keith Gooden
Why not goats? I don’t know, Matt. Why not goats?
Matt Sims
I don’t know! Why pigs? It’s just weird. Urea is obviously something that’s found in urine in a much lower concentration. So it is 32.5% urea and mineralized water. Okay? That’s what AdBlue is. It is not pigs’ urine. There you are, just dispelling a myth! Or any other… it’s not aardvark urine either.
Keith Gooden
Just in case you were asking the question! I hope that’s been of help!
What cleaner can I use with Solbio?
Keith Gooden
Maureen’s in Auckland in New Zealand, down under.
Matt Sims
Yes, absolutely.
Keith Gooden
About as far away from us as she can get! “I love watching you and Keith on YouTube down here in New Zealand. My question is that we have a similar product to Solbio here called BioMagic. I have cleaned my toilet bowl with a soap based detergent, but I’m aware that chemicals degrade bio products in the cassette.”
“Our motorhome is brand new, and we want to keep the plastics fresh. Can you recommend a product? I am loathe to fill the bowl with Thetford bowl cleaner. Thanks. Looking forward to hearing your answers.” So there you go, Matt. Maureen’s down under in Auckland in New Zealand and she wants some information on her down under equipment.
Matt Sims
It’s nice to know we reach that far.
Keith Gooden
Said the actress to the bishop.
Matt Sims
Honestly… I often say this. It’s like working with my dad. It’s so true. Honestly. I’m sorry about that, Maureen. But yes, there is a product, and I did some quick Googling on this. There’s a number of products we have here in the UK that will clean your toilet bowl that don’t have any bleach in them.
That’s the key, because that’s what kills off the effectiveness of Solbio. So Solbio is a pro-bacterial product that accelerates the rotting down of the poo and wee that you’ve put into the bowl, into the cassette, whereas other chemicals are an anti-bacterial product and they slow it down and try and turn it into water.
But I just did a quick Google and this is a Kiwi product. It’s called Bio-Zyme and it is an in cistern toilet bowl cleaner, 400 ml, and it’s totally bio friendly. It’s probiotic like Solbio is. So you would be able to use that. You can just use Solbio, though, to clean your toilet. There’s no reason why not. Just put it in a florist’s spray and spray that in the toilet bowl. Lots of people do it. We do that in ours and it works really well.
Keith Gooden
The florist’s one, yes?
Matt Sims
Any type of spray dispenser would do the job! But tried Solbio in the toilet bowl, and if you find it’s not smelling enough, just add a drop of essential oil into the liquid and your toilet smells beautiful.
Keith Gooden
And this stuff you recommend, $11.25 is the price they’ve got on it. So that’s New Zealand dollars. So it’s not expensive either.
Matt Sims
No, not at all. So firstly I would try Solbio in the toilet and see if that works. It should do. And as I say, if you want it to smell a bit stronger, a bit of essential oil will make it smell lovely.
Keith Gooden
Or curry powder. Lovely.
Matt Sims
Really?
Ask Matt your question
Keith Gooden
If you’ve got a question for Matt, what do people need to do?
Matt Sims
Dead easy. Just head to mhmp.info/askmatt. We’d love it if you recorded your question. Hit the orange button. Tell us where you are. Or you can fill out the form, but drop your question in. I guarantee you there are 100 other people with the same question as you, so please don’t be shy to ask it.
Keith Gooden
Leave us a review on mhmp.info/review.
Matt Sims
And subscribe to our YouTube channel which is sponsored by www.arobasecreative.co.uk.
