A caravan or other RV is usually a long term purchase and a leisure goods acquisition. Something wanted and desired rather than an essential purchase. So buyers will usually and understandably be seeking an affordable finance option which usually means, a loan at the cheapest interest rate achievable which requires comparing caravan finance rates.
Focusing on the interest rate is the way that many people go about seeking finance. Comparing the rates offered by a range of lenders, with little attention paid to other aspects of the loan. The interest rate is not the only aspect of the caravan loan to consider but let’s face it, it is the main driver.
In addition to the interest component of the loan there will be the lender charges and fees to be considered and these can vary across the market. Other contributing loan features may include how easy the lender is to work with and how open and flexible they are to meeting your individual requirements including the loan term you would prefer.
Regardless of all the other issues however, it will be the caravan finance interest rate that will be the major cost component of the loan and thus be a priority consideration. But before embarking on comparing caravan lender interest rates, this could be the time to brush up on your finance knowledge in general. Having a full understanding of how interest rates work across the leisure goods market and what’s currently happening with rates may be of great assistance in your search for the cheapest interest rate caravan loan.
Leisure Market Interest Rates
Interest rates vary across the lender market and across different categories of goods – cars, boats, home mortgages, leisure goods such as caravans and others. But the central factor to the setting of all interest rates is the official cash rate. This is the rate as set by the Reserve Bank of Australia for borrowings for banks and lenders to/from each other. Essentially a base cost for lenders to acquire the funds to lend. So when you hear the talk around rates, rate cuts, rate hikes etc it is most likely this official cash rate that is the subject.
Currently the RBA has held the cash rate on hold at the historic low of 0.1% which has resulted in lending rates in general to also be kept low. The RBA has stated it is not expecting to increase this rate until around 2024 but some experts think this could happen sooner – 2023 or even late 2022.
The RBA is looking to a sustained level of inflation in the 2-3% range as a trigger for rate increase. Current inflation figures have seen a rise as the country moves out of lockdown and other economic factors kick in.
Comparing Lender Rates
When looking to compare caravan finance interest rates across banks and lenders, the first thing you may notice is the variation in the types of loans. Not all lenders will offer a specific Secured Caravan Loan such as offered by Jade Caravan Finance. We are specialists in this field and offer a loan specifically for the market.
Some lenders will offer a more general Secured Personal Loan which is designed to cover a range of goods such as cars, boats and caravans. Borrowers should look closely not just at the interest rate but at the details of the loan – terms, maximum and minimum loan amounts and other specifics.
Lender interest rates vary as each will considered their interest in lending to say the caravan/RV market. Individual lenders will also need to account for their own costs incurred in securing their funds.
By law, consumer lenders are required to advertise both an advertised interest rate and their comparison interest rate. The comparison rate will always be higher than the advertised rate as it includes fees and charges. The comparison rate refers to a loan example as detailed adjacent to the rate.
The rates advertised by banks and lenders will typically refer to the purchase of new items, unless they note otherwise. The interest rate for used caravans may be higher than for new. But that will depend on the lender assessment of the application and the vehicle and the negotiation skills of yourself if you go it alone, or your Jade consultant when you elect to go with us.
You will no doubt be interested to see what interest rates are on offer across the market and we’ve simplified that step for you. We’ve published a list of major banks and lenders with the loans and rates they are currently offering for caravan finance. An easy and handy reference guide which highlights how attractive how rates are on caravan loans.
Fixed Interest Rate Caravan Loans
At Jade, we offer our Secured Caravan Loans at a fixed interest rate and with terms up to 7 years. Some lenders offer variable interest rate loans. Securing a fixed rate caravan loan ensures the borrower that their repayments will not change over the term of the loan, regardless of the RBA’s decisions on the official cash rate. For those considering an RV, it's also beneficial to explore options for low interest RV loans to ensure the most affordable repayment plan.
Our Secured Caravan Loan is applicable to all types of new RVs – traditional caravans, camper trailers, toy haulers, mobile homes and other categories, both off-road and on-road.
So comparing interest rates on caravan finance is easy and with our calculators, you can immediately receive a repayment estimate for the caravan you are considering. For a firm quote, at our cheap interest rate, give us a call and we will assist you.
Call 1300 000 003 for a quote on a cheap interest rate caravan loan
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.