Many new caravans are built to order. This allows buyers to customize their RV to suit their specific holiday or travel style. So when ordering a new caravan directly from a dealer or manufacturer, buyers are typically presented with a wide range of options to select from. This can be a great way to ensure your vehicle is style and equipped to suit your needs. But when it comes to paying for extras, options, accessories, and upgrade packs, many buyers may be wondering how to work the cost with their caravan finance.
The cost of the extras or upgrades may amount to a significant cost, depending on what particular enhancements or next level quality and luxury are required. By including the cost of any upgrade packs, accessories, and extras in the caravan finance, RV buyers can conserve existing funds for their travel plans. Sound like a great way to go? By engaging the broker-style services of Jade Caravan Finance, buyers can have the option of including extras in their caravan loan, in most cases and depending on certain conditions. We explore and explain how we may be able to make this happen for your new caravan purchase and what issues should be considered.
Making it Happen
First we’ll explain how our services can benefit caravan buyers. As a broker-style lender, we provide a very individual and personalized caravan finance service. Every customer’s request for finance is handled individually with tailored loans sourced and structured.
This personalized service allows our consultants to structure the loan, including what is and is not included in the loan amount, to meet the requirements of the customer. Some lenders will have set guidelines around their loan inclusions and many banks and some large finance companies don’t have the flexibility, due to their own structures, to vary loan conditions.
At Jade, we have accreditation with many lenders covering a vast spectrum of the recreational vehicle finance market. These include the major banks and finance companies but also non-bank lenders that can tend to be far more flexible and negotiable when it comes to varying loan conditions.
This allows us to negotiate with lenders on including many of the extras that caravan buyers tend to want to set up their RV to meet their requirements. In line with that preference, Jade Caravan Finance sources and arranges finance to meet our customer requirements.
Loan Type and Timing
Our Secured Caravan Loan is a versatile finance product that is suited to all types of new caravans and will meet the requirements of most buyers. This format loan allows for the caravan to be used as the finance security with, in the majority of applications, no additional guarantees required.
Each application is assessed individually and the interest rate offered and total loan amount approved based on the credit score and other aspects of the application – financials, etc. Individual lenders will have their own guidelines around the amount they will approve for different loans and for individual applicants.
Applicants can improve their prospects of being offered the cheapest interest rate and most suitable loan conditions by ensuring they have a credit score in the good range. Information about credit profiles can be sourced at Moneysmart.
Where the total amount of the purchase price including the accessories required meets lender guidelines, the extras could be included in the overall caravan loan. The assessment would be made based on the value of the goods in relation to the finance amount requested. Your Jade consultant will be negotiating these issues.
A major consideration for this to be possible is regarding the timing of the purchase of the ‘extras’. The extras would need to be purchased at the same time and from the same supplier as the caravan. The extra expenses would then appear on the manufacturer’s invoice which we use to arrange settlement between our lender and the supplier.
If extras are decided on after the sale and after the finance is settled, it is not feasible to consider adding them to the loan. If large priced items are required to be purchased after the caravan sale is completed, we may be able to assist with an Unsecured Personal Loan or other finance option.
What Can be Included
Manufacturers offer a wide and varied range of options for new caravan buyers. So the items that may be included can be dependent on what is available and requested.
Typical items that may be ordered by buyers to upgrade or customize their caravan can include:-
- Upgrade packs such as off-road capabilities, a sports pack, a luxury pack, or other enhancements.
- Extra solar panels or upgraded power management systems.
- Additional or higher capacity water tanks.
- Higher quality fittings such as leather seating or different floor coverings
- Interior décor can be offered in a range of options.
- Higher grade suspension.
- Accessories such as awnings are specific to a particular model.
Interest Rate and Repayment Considerations
When considering adding extras and accessories to your caravan order to be included in the loan, there are a number of considerations to keep in mind.
In regard to the interest rate on the loan, we arrange our Secured Caravan Finance at a fixed interest rate and over a fixed loan term. This ensures the repayments remain fixed. But if a buyer opts for a loan with a variable caravan interest rate as is offered by some lenders the rate may increase in line with RBA increases. This would increase the repayments and as such the loan amount including any extras may be pushed beyond the buyer’s budget.
If applying for pre-Approved Caravan Finance, buyers should add an estimate for the extras they may include in order to receive a quote on the entire package.
Customising or personalising your new caravan with extras and accessories can greatly enhance the travel experience. To ensure your experience meets your expectations, speak with us about including those extra costs in your caravan loan.
Contact Jade Caravan Finance on 1300 000 003 to discuss all-inclusive 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.