While many people purchase a caravan primarily for holidays, weekends away and other short-term getaways, others have bigger, or should we say, longer plans for the vans. Those who head off on an around Australia bucket-list trip in retirement, those who long for adventure and those who just love that semi-nomadic lifestyle. Many of today’s RVs are designed and built as homes away from home with all the facilities required for an extended time on the road. But what is required to facilitate those exciting plans may be RV loans that are also designed to suit long-term travellers.
Caravan finance sourced through many banks and lenders may not specifically suit those who plan to be away for an extended timeframe. With these types of lenders not generally known for being open to discussion on loan terms and conditions, buyers may find themselves in a position of having to make their plans around their loan.
That just doesn’t seem right. As specialists in RV loans and caravan finance, Jade Caravan Finance has the services, expertise and most importantly, the willingness, to individually source, negotiate and tailor RV loans to suit the needs of individual customers.
Mitigating the Risk of Change
When heading away on long-term travel plans for 3, 6 or even 12 months, the last thing you want to be worrying or even thinking about is regularly attending to your caravan loan. Your attention should be on enjoying the experiences and taking in all the locations have to offer.
The major worry for many is the risk of changes being made to any aspect of their loan. To assist long-term travellers in avoiding risk and to secure a ‘set and forget’ caravan loan, Jade Caravan Finance arranges caravan financing with fixed elements.
Firstly, the interest rate. While some banks and lenders may have loans for caravans with variable interest rates, our Secured Caravan Loan features a fixed interest rate.
The Secured Caravan Loan is the most widely-used type of loan and it suits most new RV purchases including off-road, traditional, and semi-offroad caravans as well as mobile homes, camper trailers and toy haulers.
The RV is the security against the loan as accepted by the lender. No additional security is typically required with this loan, except as specifically requested by lenders after assessing individual loan applications.
We arrange a fixed RV Finance rate and that means the same interest rate will apply to that loan regardless of what might happen in the general interest rate scenario. Currently, rates across most lending markets are at historic low levels. This is in response to the lowest official cash rate ever being set by the RBA over the past 12+ months. This is the rate used by lenders to establish the interest rates they will charge on their different loan types.
As the rate is currently the lowest, there is virtually no prospect that the current rates we can achieve on caravan loans would dip any lower in the future. At some time over the next few years, possibly 2023-2024, though some analysts expect an earlier timing, the RBA will increase the official cash rate. That is likely to trigger rises in interest rates across many lending markets.
So securing a fixed interest rate caravan loan now protects our customers from interest rate hikes over the term of their loan.
A fixed loan term is also a feature of our Secured RV Financing. That, together with the fixed interest rate, delivers a fixed loan repayment schedule. The repayments are negotiated by our consultants with the lender to achieve as close to our customer’s preference as possible.
Once in place, the same amount will be due each month of the loan term. That is essential for those embarking on extended touring and wanting to plan not only their route but also their finances in advance.
And there’s no worry about missed payments. Repayments are set-up via direct debit so you are not constantly need to make EFT transfers by set dates to meet the commitments.
The certainty of fixed interest rates, fixed loan terms and the resultant fixed repayments mitigate the risk of changes that could potentially disrupt travel plans.
Certainty over the Long Term
Another important factor for long-term travellers is certainty around their finances. With loan terms of up to 7 years available, we can provide that certainty for both travellers and those using the vans for holidays and short getaways.
Once locked in place, the loan remains the same, providing an extended period to pay off the caravan. The purchase price can be amortised over many years of happy holidays and adventure travels.
With these assurances around your RV loan, why not start looking at which caravan will suit your travel plans and start the conversation around finance with one of our consultants.
Call 1300 000 003 to discuss your caravan finance requirements with a Jade Caravan Finance consultant.
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.