Finding savings on a myriad of expenses and still making those special purchases such as an RV with caravan finance possible is a key objective for many buyers. Inflation is surging and interest rates across the markets are rising with the RBA forecasting both continuing in an upward direction in the near future.
Buyers of caravans and other RVs can make savings or reductions in the cost of caravan finance by considering a number of basic steps when applying for a loan. Savings and cost reductions can have varying interpretations across a range of buyers. It may relate to achieving a lower or target caravan finance monthly repayment or reducing the total cost of the finance and hence the real cost of the RV.
Depending on the objective, there are a range of options which buyers can look at when applying for caravan finance:-
- Being offered a cheaper caravan finance interest rate
- Reducing the finance total by reducing the interest payable overall
- Reducing the caravan finance monthly repayment
- Avoiding the prospect of facing fees when selling or trading-in to upgrade
We’ll address each of these objectives by outlining the steps which may be taken to achieve the goal and when applying for caravan finance through us, our consultants will of course assist with implementing your decisions.
Achieving Cheaper Caravan Finance Rates
The interest rate is key to the cost of a caravan loan. In the past few months the RBA has lifted the cash rate which has resulted in increases in lending rates in most markets. With additional rate rises on the horizon, RV buyers seeking finance will no doubt be looking to every angle to save and ensure they are offered the caravan loan interest rate that's most competitive and suitable for their situation.
Here’s a few tips to consider in working towards that objective:-
Credit rating is extremely important. You’ll notice on advertisements for consumer finance that the best rate is for applicants with a good credit rating and for new goods. Ensuring bills are paid on time and taking other proactive steps can ensure you maintain a good credit score to be in a position to be offered the cheapest possible rates. Assistance is available at Moneysmart.
The choice of which particular bank or finance company is selected can be significant to the interest rate offered. Interest rates on caravan finance vary across the market. Rather than spend a massive amount of time applying to many lenders to unearth the cheapest offer, buyers can simply engage our services. Achieving the cheapest interest rate finance for our customers is a key priority for Jade Caravan Finance. We are accredited with a vast number of lenders which means we have immediate access to what rates each is offering at any particular time and which will best suit our individual customers.
With rates across lending markets set for further rises, proceeding with the finance application and caravan purchases as quickly as possible may result in a lower interest rate when compared with delaying the process.
Interest rates vary in amount and if fixed or variable, across the lender market. We offer fixed rate caravan finance as this ensures our customers won’t face changes to their rate and repayments over the loan term. So make sure you consider a fixed and not a variable rate loan.
Reducing the Finance Total by Calculating caravan repayments
While focussing on the actual rate of interest, the total amount which is payable over the finance term can also represent an aspect for potential reduction or savings. By using a caravan finance calculator Australia, you can get a clearer picture of these numbers. A reduction in the overall interest can be achieved by reducing the amount of the finance requested, achieving a cheaper rate or reducing the finance term.
The finance amount may be reduced by:-
- Purchasing a lower priced RV
- Reconsidering accessories and extras
- Choosing to forego no deposit caravan finance and making a deposit payment on the vehicle.
In regard to finance terms, our consultants negotiate with our lenders to achieve our customers’ preference.
Reducing Monthly Repayment
For many individuals taking on finance, a reduction in the monthly finance payments can mean a saving for them. Paying less per month eases pressure on budgets. The outcome does not necessarily present a real saving in the total amount of interest, however, and that should also be considered.
Repayments can be reduced or increased by changing the loan amount, the interest rate, or more commonly varying the finance term. A longer caravan finance term results in less in repayments compared with the same finance amount paid off over a shorter term.
Lender guidelines may apply when requesting longer caravan finance terms but your Jade consultant will be working hard to achieve your preference.
Avoiding the Prospect of Extra RV Fees
One aspect of purchasing a caravan that not all buyers will think about at the time of purchase is how long it will be before they decide to upgrade to a better RV. But taking a moment to consider this timing, especially in the context of an RV loan, is also a potential saver.
When consumer finance is paid out before the agreed end of the term, exit or payout fees can apply. While minimal, they are still a cost which can be avoided. Consider how long you will keep that particular van and request a finance term which is in line with your resale plans.
A saving is a saving and considering these options when making your next caravan purchase with finance may mean real savings for you and more funds to spend while travelling. At all stages of the caravan finance process your Jade consultant will be assisting you to ensure you receive the cheapest caravan finance offer possible.
Contact Jade Caravan Finance on 1300 000 003 for ways to make real savings on caravan 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.