Over the past nearly 18 months or so, demand for all types of caravans and RVs has boomed due to the coronavirus pandemic. Instead of spending overseas and in some cases interstate travel, many Australians have decided to purchase an RV and discover their own backyard. Aiding these plans has been the low lending interest rate climate which has prevailed over the same timeframe. In some ways also due to the pandemic as the RBA implements monetary policy to stimulate the economy. Read more on RBA interest rates here.
Demand for RVs has definitely been phenomenal. But if you are still to take the plunge or if you’re considering making an upgrade by trading in your existing van on a new model, is the timing still ideal to buy? We consider a few aspects to assist your buying decision process.
Demand and Supply of Caravans
The surge in demand for RVs has caused supply issues with many manufacturers. Many buyers have had to be on waitlists for their caravans as manufacturers deal with over-demand, lock-downs causing delays in their production and in many cases global issues in receiving parts from overseas suppliers.
However, the industry appears to be responding and several manufacturers have been advertising prompt delivery. While some models on display at recent shows were for display only, there were others showing ‘available now’ signage. Several manufacturers have made plans to move to bigger premises to expand their production capacity to meet the surging demand. Reports are that both Crusader and Network RV are just two that have committed to larger factory space moving forward.
According to reports, the industry association sees demand continuing. Recent outbreaks of coronavirus in NSW and Victoria have caused further travel issues for many holidaymakers especially as state borders were slammed shut. So it’s likely the demand for the caravan lifestyle will remain popular as many opt for the safe bet for a more flexible way to holiday and travel.
The bumper crowds at the recent Supershows appears to be a good sign that demand for RVs is still strong. A sign to get your order placed asap?
Prices from some manufacturers have reportedly increased, due to a range of factors. So locking in order asap could be a smart move. Smart to secure your van ahead of any further delays and hopefully price rises. Speak with us about a pre-approved caravan loan so you can confidently place your order.
If looking to the used caravan market, be mindful of recent ACCC alerts of scams and fraud schemes that have been identified in this area. There has also been a trend towards buying old caravans for restoration. If going down this path and requiring finance, check with us on loan options as the age and condition of the caravan is taken into account by lenders. But we do have options!
While buyers may have to contend with a wait in delivery times, they will have plenty of choice with manufacturers continuing to release new models and several new brands entering the market.
Caravan Finance Update
The great news for our caravan buyers over the past year has been the continuing low interest rate scenario. While Jade Caravan Finance guarantees cheaper caravan loan interest rates at all times, with the official cash rate at historic lows we have been able to sharpen our own pencil even more.
While the RBA Governor, Philip Lowe, insists that the Bank is looking to 2023/24 for conditions to be right for a rate increase, conversations in some circles still persist that rates will need to be increased before then. Most of this talk is based on the housing market. In the past week, Mr Lowe has stated that while the RBA does not target the housing price market it did keep a watchful eye on the level of household borrowings. He also reportedly said that the regulators had commenced discussions around possible responses to this increase in household debt.
The labour market indicators continue to be strong but the inflation rate which the RBA has previously indicated as key to any rate rise is currently not in the bank’s target range.
Putting all that scenario into relevance for caravan finance….while interest rates are currently very low on our caravan loans, any increase in the official cash rate were it to come sooner than anticipated, could trigger an increase in lending rates in sectors other than housing.
The better news is that, unlike some home mortgages, our caravan loans include fixed interest rates. Fixed interest rates on our Secured Caravan Loans are fixed for the entire loan term. So if you lock in a caravan loan now, you will enjoy that same low rate over the entire, up to 7 years, loan term.
Caravan Loan Options
Regardless of movements in caravan demand and supply or in interest rates, the types of loans we offer for caravan purchases remains constant. The Secured Caravan Loan is the most popular especially for brand new caravans, camper trailers, RVs, motorhomes and all other variations. If buying second hand or a resto project and the van is not suitable as security against the loan, we offer an Unsecured Personal Caravan Loan.
With interest in caravans expected to stay high for some time, if you’re considering a purchase, it could be time to move forward and place that order so you too can enjoy the freedom and flexibility offered by the RV lifestyle.
Call 1300 000 003 to discuss lending with our consultants
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.