The latest interest rates increase from the Reserve Bank along with price increases on some new models and other inflationary pressures, may put a dampener on RV purchase plans for many buyers. Before abandoning caravan ownership for the first time or an upgrade to a newer model, why not consider all the options that are on the table. Options such as the choice of RV and sourcing a cheaper caravan loan.
Both options which may reduce the monthly loan commitment and make proceeding with caravan ownership dreams an achievable and realistic possibility. For example, considering a lower-priced camper rather than a traditional caravan, could be an option. Though possibly with some compromises or simple changes to the way the caravanning lifestyle is embraced and enjoyed.
Sourcing a cheaper caravan loan is an obvious option. Considering cheaper finance should come with no compromises just advantages, especially when sourced through Jade Caravan Finance. There are approaches that buyers may consider to ensure they can purchase a new RV within their budget and offset interest rate rises and RV price rises.
Choice of RV
Where price is a priority, many buyers will automatically consider a used rather than a brand new model. If so, keep in mind that used goods can attract higher interest rates on finance than new goods. Lenders consider the age and condition of the RV when preparing a loan offer. Also consider any maintenance, repairs and replacing worn parts earlier than would be required with a new model. These added costs down the track may put pressure on the budget.
Considering smaller models and models with less high-end specifications and inclusions clearly present a lower price option in most ranges. Simple compromises on some conveniences and luxuries may be worth it.
For traditional caravan buyers, changing it up to a camper may offer a less expensive option. As an example, consider the new models from ‘re-inspired’ Gumnut Campers. According to the company, the business name was ‘re-inspired’ by the owners and seen as suiting the companies range of pod and teardrop campers.
In their own words, the business owners have revamped the classic teardrop camper and the range is now an Australian-made product. The H1 Touring model presents an economic and light-weight towing option with simple set-up.
The cabin is fully-insulated and the model has a tailgate area for the kitchen including good bench space and sheltered design. This is an entry-level model with an overall length of 3.8m and just under 2m wide.
The other model to consider in the Gumnut range is the H1 Adventure. This has the heady-duty suspension and other features suited to more off-the-beaten-track travelling. For caravan buyers considering the change to a Gumnut camper, this model does come with optional extras which can be included for greater conveniences. Extras such as an external shower, fridge and air-con.
Wondering about pricing? Sources quote pricing on the Gumnut models from just under $25k to just under $28k. Interested buyers can use these figures in our caravan finance calculator to work up rough repayment estimates. To see the Gumnut campers up close, head to the Ballarat Outdoor Expo where they will be exhibiting, 28-30 April.
Reducing the Caravan Loan Commitment
The other obvious option to address recent interest rates rises and possibly higher RV prices is to reduce the finance commitment. That may be by reducing the overall cost or by reducing the monthly commitment – the monthly repayments.
- Reducing the amount required for the loan can be achieved by selecting a cheaper RV as discussed above or by paying a deposit.
- Reducing the overall total payable on the loan including interest and reducing the monthly repayments can be achieved by securing a cheaper interest rate.
Interest rates on loans for caravans do vary across the market. Using a broker to source the loan can offer benefits over applying directly to many banks and finance companies to obtain quotes to compare. As a broker-style lender that specialises in RV finance, we have access to more lenders. That provides greater choice and improves the prospects of quickly achieving the cheapest interest rate.
A cheaper rate means lower monthly repayments. Overcoming the potential hurdle to caravan ownership presented by higher rates and where the RV price is higher than expected.
The RBA has indicated that more rate rises are likely to be required. Sourcing a cheaper caravan loan with better interest rates through Jade Caravan Finance may assist buyers proceed with new RV purchases even with rate rises.
If planning to purchase or order at one of the upcoming caravan shows, speak with us prior for pre-approved finance or simply to get quotes based on the estimated price of the RV you have your eye on. Don’t abandon caravan ownership plans before speaking with us.
Contact Jade Caravan Finance for a cheaper caravan loan.
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.
