News that the RBA has raised the cash rate by 0.25% can be difficult to put into the context of individual financial circumstances. The amount that lenders will increase rates in specific markets such as caravan finance may vary in amount and in timing. For individuals looking to purchase goods with finance, trying to work out what the interest rate on loans in that market at the time you plan to buy can be challenging to say the least.
With the situation looking highly likely that more rate rises are in store, those intending to apply for caravan finance in coming times can utilise the finance resource tools we provide including our Caravan Finance Calculator, which is available here on our website. If making plans to purchase an RV with Caravan Finance, knowing how an interest rate rise may affect that loan may be extremely useful information for buyers.
The finance calculator can be used for that purpose – to estimate repayments based on guesstimates of rate rises, and for many other purposes. The calculator is especially useful for assisting with planning what to buy, when to buy and in making decisions around the lender and the details of the loan.
Our Caravan Finance Calculator is a very easy to use function which is accessed here, is free to use and attracts no obligation. To assist buyers considering finance to get the optimum use from our finance calculator, we provide this information on how to use it correctly and effectively and highlight the multi-purpose nature of the device.
How to Use Our Loan Calculator
We actually provide two separate functions which can be used to calculate caravan loan repayments – the Interest Rate Comparison Calculator and the Caravan Finance Calculator.
The comparison device is the table which lists the rates and loans offered by a selection of lenders. By inputting the amount wanted for a loan, the estimated repayments applicable to each loan and lender listed is displayed. The key purpose of this is to highlight the variations across the market and the low rates offered by Jade Caravan Finance.
The Caravan Finance Calculator has additional capabilities in that the interest rate can be varied. So this is the tool to use to work out possible effects on caravan loans as a result of an RBA and ensuing lender rate rise.
You enter the amounts in the various boxes as indicated. The total loan amount, the interest rate and the loan term.
Start with the amount of the loan which may be the price of the RV you are considering. Now decide on a loan term, possibly 5 years/60 months for example. Now enter the current interest rate we are displaying as the advertised rate or the comparison rate.
Now you have that data in place, you can start varying one, two or all three values and note the result.
To see what the effect from an increase in interest rates, simply add say 0.25% or 0.15% to the rate as an example. Leave the loan amount and the loan term the same. You’ll immediately see the repayment estimate change. Providing an indication of the effect on repayments by a rate rise.
When using loan calculators, it is important to appreciate the limitations of such a device and use the information as intended. This is a generic function so no allowance can be made for specific of individual loan applicants, especially the credit profile.
Interest rates advertised by lenders will typically be the rate which applicants with good credit profile may be offered. Be mindful that the calculation is not a loan offer or even an indication that a loan has been approved and not all fees and charges will have been accounted for.
Compare the Lowest Caravan Interest Rates
The basic purpose of a loan calculator is to calculate repayment estimates on caravan finance, especially considering low caravan loan interest rates, ahead of applying for a loan or buying to check that the purchase price is within budget in terms of loan repayments. But the calculator offers a lot more.
- Assist with making buying decisions: saves time in inspecting and having discussions on caravans that are not in your affordability zone in terms of loan repayments. Before leaving home you can easily decide if that make or model will fit within your budget range in terms of repayments.
- Time purchases: help in making decisions around when to buy. Interest rates are tipped to rise again and possibly on several occasions this year and/or into early next year. Vary the interest rate on the calculator as a test case, to see what repayments may be at different slightly higher rates. This may assist in deciding if you can or want to hold off until a later time to purchase or if you should move faster to secure caravan finance at the current interest rates.
- Decide how you would like the caravan finance structured: varying the term changes the repayment amount. Calculating these estimates prior to making a loan application may speed up the loan process. You will be able to brief your Jade consultant one exactly how you would prefer your loan be structured.
- Decide if it is preferable to request a no deposit loan or to pay a deposit to the dealer to reduce the amount being requested.
- Achieving target repayments: if you have a target amount you would like to achieve in repayments, do the ‘reverse’ process. Enter initial figures then vary the loan amount and term until the combination achieves the repayment figure you have in mind.
Putting rate rises into context when you are considering applying for finance can be a lot less time-consuming and confusing by simply using a caravan loan calculator. It is an extremely useful resource and an essential buying tool for those planning to purchase a caravan with finance.
Contact Jade Caravan Finance on 1300 000 003 for a firm quote on caravan loans after calculating estimates on the finance calculator.
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.
