A loan to buy a share caravan or another type of recreational vehicle with friends or family may be arranged with an Unsecured Personal Loan. While share ownership and time-share have been available for boats for a long time, the same concept can also make a lot of sense for RVs.
For starters, not everyone has unlimited time to spend using their RV. Some may only manage to find time for a few weeks' holiday a year or for the occasional long weekend getaway. Others may want to get into caravanning but the price to buy a caravan places that prospect beyond their affordability zone. In such scenarios, it makes a lot of sense to share the purchase cost, ownership expenses and use with other people.
Funding individual shares in the purchase of a new RV may make economic sense compared with having to rent a van each time. Ownership may also provide additional advantages over hiring such as customising the vehicle to individual lifestyle, activities and preferences and the convenience of having the RV set up and ready to go when the owners are ready.
Sounding like something that would work for you? Consider our opportunities for a loan to buy a caravan share to see if they would also work for you.
What is a loan to buy a share caravan?
Our context or definition for buying and financing an RV on a share basis is each party to the arrangement covering the cost for their allocated portion of the purchase price. Share caravan loans would be for each individual to finance the amount they are required to contribute.
As multiple parties would have ownership of the RV, not one would be able to provide the vehicle as security for their individual loan. With the goods being funded not suited for loan collateral, a Secured Caravan Loan would not be suitable.
Individuals requiring financing for a share in a caravan may consider an Unsecured Personal Loan. This type of credit can be used for a wide range of purchases and purposes as the goods being financed do not need to be provided to secure the loan. Finance would need to be arranged separately by each shareholder. This type of credit product would not allow for multiple individuals to be party to the same loan.
While versatile and convenient, this type of credit does attract a higher interest rate than secured credit and may have other conditions. Lenders typically have maximum and minimum loans approved for their unsecured credit. The maximum limits are usually in the range of $20,000 to $50,000. The amount approved for an individual applicant will be determined by the lender when the application is assessed.
Interest rates may be fixed or variable, depending on the lender. Terms of 1 year to 7 years may be achieved. With the RV not offered as security against the finance, lenders do not require goods purchased with unsecured loans to be covered by insurance. However, most RV owners will want the assurance that insurance cover provides for theft and damage to their vehicle.
To get an indication of whether unsecured credit may be a workable option for you to finance a share of a caravan, use our Caravan Finance Calculator. This device can be used to generate finance estimates on all types of credit products simply by using the relevant interest rate.
Compare Sharing with Buying a Caravan with Finance
While considering all your options for getting into caravanning and while using the Finance Calculator, work up figures on a loan to buy a caravan yourself. Financing to buy your own vehicle may be arranged with a Secured Caravan Loan. The vehicle would be used as loan collateral and this type of credit can suit both new and quality used models.
Interest rates on secured credit are lower than for unsecured credit. The repayments on a lower-priced model than was under consideration as the share vehicle may be affordable providing accessibility to buy rather than share an RV.
Loan to Buy a Share Caravan – Vehicles and Arrangements
If considering buying a caravan to share with others, our financing options can suit all types of RVs, both new and second-hand. This includes traditional caravans, camper trailers, campervans, mobile homes, toy haulers and other variants.
The types of ownership arrangements that may be involved can vary with individual preferences. They may include setting up a ‘time-share’ with like-minded friends or family. It may be a casual arrangement regarding usage or a more formal arrangement with designated time blocks each year.
A multi-generational arrangement may work well if the older retired generation gets use of the vehicle during the week and outside of school holidays and the family generation use the vehicle at weekends and during school holidays.
Where both or all parties want to holiday together, the financial arrangement may facilitate the purchase of a very large model to accommodate all owners at the same time.
Another option that can be funded with unsecured credit is a family member or friend that has an RV but finds they don’t use it as much as they would like, selling a share in the RV to another family member to share the costs and allow greater use of the vehicle.
Whatever the arrangement, sharing can involve splitting the purchase price plus the ongoing costs of ownership. These would include registration, service and maintenance, and, if you choose, insurance for the caravan.
Before entering into a share caravan arrangement, be mindful that the vehicle will be registered in one person’s name only. Mutual trust between parties is essential.
While the RV is not available as collateral for a loan, if one owner defaults on an unsecured finance payment, the lender may pursue the debt with that individual’s assets, which may include the caravan you share.
Summer holiday season is close. Is it time for you to get into caravanning with a share arrangement? Speak with family and friends about the concept and speak with us about the financing.
For a loan to buy a share caravan, contact Jade Caravan Finance on 1300 000 003 or connect online.
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.
