When enjoying long, relaxing travels and holidays in your caravan, the last thing you want to be worrying about is your caravan loan repayments. As RVs become more high-tech and fully optioned and luxurious, the price does edge up there with some models priced at, let’s say, a considered purchase level. Many caravan buyers, whether looking at the budget or the top end of the market, are sensibly looking at the loan repayments as the all-important affordability factor. For those unfamiliar with the process, understanding how to get finance for a caravan can be crucial in ensuring they secure the best possible terms for their purchase.
Acquiring lower caravan finance repayments can be the more significant figure to focus on than the actual price of the RV. Jade Caravan Finance is renowned for achieving cheap interest rate caravan loans and that is a key element in determining the cost of the loan and the resultant loan payments.
But there are a number of strategies that caravan buyers can consider in order to achieve their target low caravan loan repayments. We cover off on the ways we can assist buyers achieve this objective.
Focus on Cheap Caravan Loan Interest Rate
With any form of loan, the interest which is payable in total over the term of the finance is the major cost component, after the loan principal. When taking on finance, lenders will have their usual fees and charges to be included, but it is the interest that requires the biggest attention.
To achieve the lowest caravan loan repayments, Jade Caravan Finance focuses on securing the cheapest interest rates. Interest rates on caravan finance will vary across the lending sector. In fact, some banks and lenders do not specifically have a caravan loan category but offer a more generic loan type for a range of leisure and recreational consumer goods. For buyers aiming to get the most competitive terms, it's essential to consider the best rated caravan loans in the market.
Rates vary as the lenders will have varying costs themselves to factor in on top of the official cash rate as set by the RBA. The interest rate offered by lenders may also reflect how keen they are to be competitive in a certain market sector. By dealing with a specialist leisure market lender such as Jade Caravan Finance, buyers can tend to find the cheapest rates and experts that understand the market.
To find out who is offering the cheapest interest rate may require doing quite a bit of research and making contact with individual lenders for a quote for your specific purchase. A process which can be time-consuming, confusing and involve a lot of hassle. To assist caravan buyers, we’ve provided a Lender Comparison Calculator. This loan tool lists a number of banks and non-bank lenders along with ourselves. It shows the loan type available for caravan purchases and the relevant interest rate and comparison rate.
Buyers simply enter the loan amount in the field as indicated and immediately see the repayment estimate for that loan and lender. This is a very clear demonstration of how the interest rate impacts the repayments!
Consider the Caravan Loan Term
Interest rates are applied to loans on a per year basis. So it follows that the term of finance, the number of years to repay the loan, will also have an impact on the monthly repayment. The calculations do involve complex computations of compound interest etc but there is a fairly simple guideline:-
- If the finance term is longer, the caravan loan monthly repayment will be lower but the interest payable in total on the loan will be higher.
- Conversely, if the finance term is shorter by a few years, the monthly loan payment will be more but the total payable interest will be less.
With Jade Caravan Finance, caravan loan terms of 7 years are achievable, depending on individual circumstances and lender guidelines. But varying the number of years can result in a different repayment.
Consider a Deposit
While we focus on interest rates and loan terms in calculating repayments, we work with the loan amount as requested by our customers. But that is something worth considering upfront. While we can achieve no deposit finance for many of our customers, it does mean the entire purchase price of the RV is included in the finance. The larger the loan, then logically the larger the repayments.
If seeking lower repayments is a major priority then paying an upfront deposit to the caravan dealer can reduce the finance total requested. While considering this element, keep in mind that interest rates are currently at historic low levels. So finance is the cheapest it has ever been. By securing a fixed interest rate finance deal at the current cheap rates now, you are assured of that cheap rate for the full term. Using existing funds to pay a deposit is a very personal decision and will be based on individual financial objectives.
Bringing it All Together!
So you can now see all the strategies and the elements that can be considered to achieve the target caravan loan repayment. To see exactly how all these factors intertwine and affect each other, simply use our Caravan Finance Calculator. Vary the different amounts in the loan amount, interest rate and term fields and note how these changes alter the repayment estimate.
Whatever your target caravan loan repayment amount, your Jade consultant will be working hard on your behalf with our lenders to achieve your requirements.
To discuss achieving low caravan loan repayments, contact Jade Caravan Finance on 1300 000 003
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.