The caravanning holiday and travel style has been embraced by many Australians in recent years and newcomers continue to be attracted to the lifestyle. Those buying their first RV may be surprised at the wide range of options available – hybrids, off-road, traditional styles, camper trailers, campervans, small and large, new and used, for buyers to work through. When it comes to applying for funding, there are also quite a few variations across the lending market to consider. As experts in RV lending, Jade Caravan Finance assists first time buyers of all makes and models, with applying for a caravan loan and securing the best rates.
While, as brokers, we handle the entire process of sourcing, negotiating, structuring and settling RV credit for our customers, it is strongly advised that buyers understand the basics to enable well-informed decisions to be made. This news item provides those basics in a brief overview of RV funding – the products available, the lending market and how we can secure better rates.
Applying for a Caravan Loan – Finance Options
While all RV types can be funded with credit, the most suitable product can be different for new and some second hand models. Secured Caravan Finance most commonly suits new and quality used models. This is the preferred options for most buyers. It attracts our best fixed interest rate, can be structured over a fixed term and the RV is accepted as the security. Many buyers will not be required to provide extra collateral.
No deposit credit is available, subject to lender approval, which enables buyers to borrow the complete purchase cost.
Where the lender considers the age and condition of the RV unacceptable as collateral, buyers can consider our Unsecured Personal Loan. The interest rate is higher than the secured option, but attractive rates can be secured and a fixed term arranged.
To get an estimate on the monthly repayments that our current rates may deliver on the RVs you are considering, use our Caravan Finance Calculator. Type in the amount you want to borrow, the term preferred to repay the commitment and the rate we are currently showing. The calculator instantly calculates the monthly repayment estimate based on those figures. This can be a great tool for pre-purchase budgeting.
How to Secure the Best Caravan Loan Interest Rate
Key to the total cost of the credit, the monthly repayments and the overall outlay for the RV is the interest rate. There can be significant differences in the interest rates offered on credit for recreational goods across the consumer credit market. This results from banks and credit companies setting their rates based on their own internal policies. While the Reserve Bank may set a cash rate, the overnight borrowing rate, lenders are free to set their own rates.
Rates will also vary for individual applicants, based on lender assessment of each application in regard to credit risk and other factors. To get the best rate, buyers need to find the right lender. The lender that suits their requirements and profile.
We save buyers time and confusion in this regard by quickly identifying which of our 80+ lenders best suits each customer. We then use our bargaining power to negotiate the best rate. Highlighting the key advantage of using an expert broker to source your RV credit.
Improving Credit Position prior to Applying
An individual’s credit history and record and current financial situation are integral to being offered the best rate. Individuals can take steps to improve their situation as outlined on Moneysmart. snlPrior to apply
Requirements to Submit an Application
The RV credit sector falls under the wider Consumer Credit area which is regulated through ASIC. This means that applicant must be above the age of 18 and lenders are required to request certain information and details in the application.
This information includes current and history of employment; residential history; income and other financials. Preparing this information prior to applying may speed up the approval process.
Submitting an Application
Applications for RV funding can be submitted online or over the phone with one of our brokers. There are no differences in any offer that may be made as a result of the means an application or a request for a quote is made. Using our convenient online resources allows buyers in all states and territories access to our personalised, low rate RV lending services.
Applying for a Caravan Loan Before Deciding on Make, Model
Buyers do not have to wait until after they have selected their RV to purchase and come to an agreement with the dealer on price. For greater certainty and clarity, buyers can apply and get approved beforehand, based on their estimate of amount to be borrowed.
Buying a first RV can be an extremely exciting time as a step towards enjoying the great caravanning lifestyle. To ensure the funding process is equally enjoyable, contact Jade to arrange your credit.
For assistance with applying for a caravan loan and securing the lowest rates, contact Jade Caravan Finance.
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.
