When seeking caravan finance it is important that you understand how much you can afford to offer your caravan and how much it will cost you in monthly repayments. If you overextend yourself you could find yourself in trouble, and may even having to part with your caravan, so take heed and make sure that you fully understand the finances involved.
First, consider all the costs involved in purchasing and running your caravan. This can easily be done before actually purchasing it, and by going into the transaction knowing all the costs you will be more confident of you ability to maintain both the caravan and the payments – after all, what’s the point in buying a caravan if you can’t afford to run it?
Here are the various costs that you should take into consideration:
• The purchase price of the caravan
• Monthly repayments of caravan finance
• The interest you are paying
• The cost of insuring the caravan
• The cost of equipping the caravan
• Camping Fees – This site may assist – http://www.nprsr.qld.gov.au/experiences/camping/camping_fees.html
• Storage or garaging (including winter storage)
The purchase price is fixed, of course, but how that is repaid depends on a number of factors. In fact the first two factors above are related in that they are combined to a set monthly sum that you must repay to the provider of your caravan finance.
That monthly sum is related the following factors:
• The interest rate applied
• The term or period of the finance
• The amount of finance to repay
Use Our Online Caravan Finance Calculator For Different Repayments
The interest rate is normally controlled by the lender, and our consultants with experience doing leisure finance every day understand where to go and if they can be negotiated. The term over which you pay can be negotiated, although the age of the caravan will have a bearing. Newer caravans can have up to 7yr terms offered.
The amount of caravan finance you have to repay, or the capital or principal sum, is the purchase price of the caravan less any deposit you pay. The higher the deposit, the less interest applied and the lower the monthly payment. Let your Jade consultant know if you prefer to have no deposit lending or you prefer to put in a deposit.
Then you have the insurance for the caravan – All secured lending requires that you have the goods comprehensively insured whilst under the loan agreement.
Your caravan will have to be equipped and you will need gas cylinders for the cooker and heating and you may also have gas lighting. Then there are garaging costs – unless you have space on your property for a caravan you may have to pay for its garaging, particularly in winter months when it is less likely to be used.
Talk to our specialists at Jade Caravan Finance to help you be better informed of all costs. If you are comfortable with all costs through your whole camping experience it helps to make your camping experience a much better one.