Congratulations on the decision to join the Caravan Owners Club and start enjoying the great RV lifestyle. The decision to purchase a caravan can be extremely exciting and the start of an even more exciting journey to consider the amazing makes and models available. For most buyers, the purchase decision also means the necessity to source finance. So the journey to caravan ownership also involves a ‘stop-over’ comparing caravan finance options available.
That ‘stop-over’ can be a brief and pleasant time if you are across the caravan finance market, understand how interest rates work and most importantly, you are aware of the expert services available to assist in securing cheap caravan finance.
Specialists in the caravan, RV and leisure market, Jade Caravan Finance brings together a number of key issues to update your knowledge and streamline the loan sourcing and securing process.
Caravan Finance Lender Market
Caravan loans come under the umbrella of ‘consumer finance’ which, in general terms, is offered by a large range and number of banks and lenders. But not all these lenders will have an actual ‘caravan loan’ category listed in their range of loans. Caravans may come under a more general Personal Secured Loan which is provided to cover the purchase of goods such as boats, motorbikes and caravans.
Approaching lenders that do specialise in this specific RV market, including Jade Caravan Finance, is where you are more likely to find a loan that has the title, Secured Caravan Loan.
The consumer finance market includes:-
- The major and 2nd tier banks where Australians traditionally go with a wide range of personal and business finance requirements. Banks can be competitive on interest rates and easily accessible. But they are not known for being flexible and negotiable when it comes to their individual loan conditions. This is in part at least due to their status as a banking institution and their corporate approach.
- Finance companies are another major source of consumer finance and based on much of the advertising and promotion, portray an image of cheap finance deals. But many of these lenders are also large corporations that also operate to specific internal guidelines when approving loan applications.
- Dealer finance is a source of loans that has soared in recent times. By offering buyers on the spot loans, dealers have a greater chance to turn prospective buyers into sales. These loans are usually set up with an arrangement with a bank or more commonly a finance company. While appearing a good option, some can conceal hidden commissions or costs.
- Finance brokers such as the way that we operate, are easily accessible and available to individuals and their services can be extremely beneficial to customers. They are businesses that are accredited with a lot of banks and non-bank lenders and as such have direct channels and access to sourcing loan quotes for their customers. Select a broker that has the bargaining power and skills to negotiate a cheap interest rate and the loan terms and conditions to suit your requirements.
Interest Rates on Caravan Finance
The caravan loan interest rate is the major driver of what your caravan loan will cost you over the complete term of the loan. So it is important that those seeking a loan are aware of the importance of achieving a cheap interest rate and make that their priority.
The RBA sets the official cash rate and then the lenders establish their rates for the different markets they operate in. Rates will vary across different markets so you don’t necessarily get the same interest rate on a car loan as you will be offered on a caravan loan.
Lenders set their rate according to their interest in lending to a particular sector. Those that are keenly active in caravan finance are more likely to offer cheaper rated loans.
Loan applications are assessed for risk and for ability of the applicant to repay the loan. These factors will determine the interest rate offered. Caravan buyers may improve their prospects for being offered a cheaper interest rate by checking their credit profile prior to applying.
Lots of Different Caravans – so which loan suits?
The caravan market is extensive with a large number of different types of vehicles. Mobile homes, traditional caravans, off-road, semi off-road, toy haulers, camper trailers, camper vans – the range is massive. Fortunately for buyers, the same loan type from our portfolio applies to all these RVs.
The Secured Caravan Loan has a universally accepted structure and format for a secured consumer loan. The loan amount is secured for the lender against the actual RV itself. In most circumstances, no additional security is required to be approved for this type of loan when purchasing a new caravan.
Used caravans will be assessed according to the age and condition of the vehicle and may attract different loan conditions to new vehicle loans.
Expert Loan Services
While there may seem a lot of ground to cover to get up to speed on caravan finance, there is a short-cut to achieving a cheap caravan loan that suits your purchase. Simple engage the expert services of a finance broker style lender such as Jade Caravan Finance.
We save customers the time and the need to compare caravan loans by handling the entire process for them. Leaving them more time to enjoy the caravan buying experience and consider which make or model will best suit their holiday and travel plans.
For a quick quote on the caravan you are considering, 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.