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Are loans the same for both new and used caravans?

Getting into the caravanning lifestyle has been growing in popularity in recent years and the COVID-19 pandemic appears to have accelerated that growth. Reports and news from various sources indicate a surge in people enquiring about buying a caravan. With the changes to international travel, border closures and possibly even the reluctance of some people to holiday in more dense styles of accommodation are most likely at least part of the reasons for this surge. It all sounds like great news for our local Australian caravan industry.

Buyers are spoilt for choice when it comes to deciding which caravan brand and which model to purchase. If you’re unsure how to decide ‘which caravan’ we’ve posted a number of articles on the differences between the types: conventional caravan, camper trailer, pop-top, pop-up, pop-out, off-road, motorhomes and hybrids.

Price can be a key decision-driver in the recreational goods market and many buyers will no doubt be surveying both new and used vehicles in their search for ‘the one’. The used market can be quite strong and second hand caravans are available through both dealers and private sellers. https://www.caravancampingsales.com.au/ may be a great place for your search to begin.

With many people seeking finance to purchase their caravan, it’s not that used van buyers may be wondering if their caravan loan would differ from finance on a new caravan. At Jade Caravan Finance the types of loans we offer for both new and used vehicles are the same but elements of individual loans may vary.

Caravan Loan Types

Jade Caravan Finance offers two types of loans for the purchase of both new and use caravans and other recreational style vehicles.

Secured Caravan Loan

This type of loan is the most commonly used finance. It follows a standard loan format:-

  • The lender accepts the caravan as security against the loan.
  • The loan term is fixed over a set number of years.
  • The borrower repays the loan in fixed and equal monthly instalments over the loan term.
  • Borrowers are allowed to make additional payments if they choose.
  • If the loan is finalised before the agreed upon loan term, minimal break fees apply.

Unsecured Personal Loan

In some circumstances, putting the caravan up as security against the loan is not an option. These circumstances may include: the lender considers the age and/or condition of the van not acceptable as security; the borrower may choose not to offer the van as security for their own personal reasons; or other reasons.

When no security is available against the loan, Jade may suggest an Unsecured Personal Loan. This is the loan category where differences in loan conditions emerge, when compared with a secured loan.

  • As no security is offered, the interest rate is higher than for a secured loan.
  • The interest rate may be variable or fixed.
  • The loan term and the monthly repayments are still fixed.
  • Borrowers can make additional payments.

Interest Rate Variations

When sourcing quotes, our Secured Caravan Finance consultants cover off on offers from the large number of banks and lenders we are accredited with to ensure we achieve the cheapest interest rate and best conditions for our customers.

Interest rates can vary from loan to loan based on a number of factors:-

  • Individual profile of the borrower and the risk as assessed by individual lenders.
  • An individual lender’s experience in the caravan sector.

Loan Terms and Conditions

Variations will occur from loan to loan, including new caravan compared with used caravans based on a number of factors.

  • With used caravans, lenders will take into account the age and condition of the vehicle and may vary loan terms and conditions on that basis. This may involve the length of the loan, the term, offered.
  • Lender may request the borrower to pay a larger deposit to reduce the total loan and their exposure to the loan.

Applying for a Caravan Loan

Whether you’re intending to purchase a new or a second-hand caravan, the process for applying for a loan with Jade Caravan Finance is the same. The service and procedures that we provide to source the best loan for our customers is also the same. There is no obligation to proceed with loan offer made until the final stages of the process and according to the law around consumer loans.

  • Use our caravan finance calculator to get a rough ballpark estimate on repayments or just phone for a quick quote or to commence the application process.
  • Your consultant will request the necessary information and documentation from you in order to proceed with sourcing you a firm quote from one of our many lenders.
  • Interest rates and loan terms will be negotiated with the individual lenders to achieve the cheapest rates and the most attractive and acceptable terms and conditions.
  • On acceptance of our quote, your consultant will proceed to process your application and assist you with the paperwork to affect a prompt settlement and enable you to take delivery of your caravan.

While the interest rate, loan term and some loan conditions may vary depending on both the individual borrower and the caravan being purchased, new or used, the service provided by Jade Caravan Finance as your finance broker will be consistent. Our focus is purely on achieving the best loan outcome for our customers and ensuring they secure their caravan with the cheapest loan possible.

To discuss a loan on a new or used caravan, speak with a Jade Caravan Finance consultant 1300 000 003

DISCLAIMER: ALL INFORMATION WHICH IS PRESENTED IN THIS ARTICLE IS INTENDED SOLELY FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION. IT IS NOT UNDER ANY CIRCUMSTANCES INTENDED AS PROVIDING FINANCIAL ADVICE. FOR SPECIFIC FINANCIAL ADVICE ON INDIVIDUAL FINANCIAL CIRCUMSTANCES, READERS ARE ADVISED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR INCORRECT OR OUT OF DATE DETAILS IN REGARD TO GOODS, SERVICES, POLICIES AND PROGRAMS MENTIONED IN THE ARTICLE. THE INFORMATION AND DATA QUOTED HAS BEEN SOURCED FROM PUBLICLY AVAILABLE SOURCES INCLUDING MANUFACTURER AND GOVERNMENT WEBSITES.

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