The caravan manufacturing industry has had its share of challenges over the past few years as a result of the pandemic. The surge in demand for new caravans with borders closed and record interest rates for RV finance available happening at the same time as lockdowns resulted in long delivery times. But if the response and results from the 2022 caravan shows is anything to go by, the industry is on the up.
The show schedule was back in force with fantastic attendances at both the major events such as the Rosehill Supershow and Brisbane Caravan Show as well as the smaller, regional events according to reports. Manufacturers launched many exciting new models onto the market at these shows, which present great opportunities for RV buyers to easily inspect multiple options in the once place.
Buyers can also take advantage of shows to place their order, if they have arranged pre-approved caravan finance. Many buyers go down this path as it can present a range of benefits including being in a position to order and possibly negotiate on price. But there are always more cautious buyers that choose to reflect on what they’ve seen for a bit longer before proceeding with their purchase.
If that sounds like you, then it could be time for committing to a purchase in time for the upcoming summer holiday season. For buyers requiring finance, there is another compelling reason to expedite the process – interest rates. The RBA Board will meet on 1 November to make its decision about the next rise in the cash rate. With the 0.25% rise in October the Board stated that it could be expected that further rises would be necessary and expected.
When the RBA lifts the cash rate the decision typically signals lending rate increases across multiple sectors. If you’re wondering how much delaying applying for finance after another rate rise may look in terms of possible RV finances, use our Caravan Finance Calculator. Vary the interest rate to see how the change is reflected in the estimated repayment outcome.
For buyers that waited until after recent caravan shows to place their order, now could be time to apply for RV finance before the next interest rate rise. Convinced it’s time to apply and buy? Here’s some important information you need to know about RV finance.
RV Finance Options
Most buyers of new caravans will suit a Secured Caravan Loan. This loan type is suited to all types of new caravans and RVs including traditional designs, off-road models, toy haulers, camper trailers, mobile homes, campervans, micro vans, pod vans and all the other exciting models available on the Australian market.
This secured loan format is extremely easy to understand, even for those that don’t consider themselves overly proficient in finance. The caravan is accepted by the lender as the guarantee or security as it’s known against the finance. When arranging this type of loan, we offer a fixed interest rate and fixed finance term. This results in a fixed monthly finance repayment figure for our customers.
All three elements remain fixed and unchanged over the term of the loan. That is regardless of what happens with the RBA cash rate decisions and interest rates in general. So if you confirm finance at the interest rate we can achieve for you today and the RBA announces a cash rate rise at its next meeting and lenders respond with rises, the fixed interest rate on your loan will not alter.
That is great peace of mind for buyers, especially those that may be planning that lengthy, much-deserved caravan tour.
To further assist buyers, no deposit RV finance is available, subject to lender approval of individual applications. By opting for this, caravan buyers can include the total price of the caravan and possibly a range of options and accessories, in the loan amount. Those extras may include extra water tanks, off-road upgrades, extra solar capabilities, awnings, additional storage or upgrading to the luxe interior décor option.
Just as most caravan manufacturers allow buyers to ‘build’ their van to suit their travel stye, our consultants assist buyers by tailoring the RV finance to best suit their requirements.
Interest Rates on RV Finance
Increases in interest rates have been implemented in many lending markets as a result of the RBA’s decisions to lift the cash rate. How and when banks and non-bank lenders do react to such decisions will be based on their specific approach and outlook.
Interest rates for caravan loans do vary across the market as can be clearly seen in the selection of lenders that we have displayed for comparison purposes. What can also be seen is how we are continuing to achieve better rates in the current rising rate environment. Buyers should be aware that interest rates that lenders display are typically applicable for new goods and for loan applicants that have a good credit score. Each application is assessed on an individual basis and the interest rate and loan offer made on that assessment. Our consultants negotiate to achieve the best rate and the best loan conditions for customers.
The holiday season is fast approaching and we are assisting buyers to arrange their caravan finance to facilitate their purchase through our fast approval process. Saving precious time in confirming finance to enable buyers to confirm their purchase and start making travel plans.
So if you put off that buying commitment while at a caravan show and now wish to proceed, please contact us to discuss your requirements and request a finance quote.
For fast finance approvals, contact Jade Caravan Finance 1300 000 003 for 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.
