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Defining security in insecure times: secured & unsecured caravan loans

Caravan sales have been surging over the past 18 months as more and more Australians realise the appeal of this style of travel and holidaying with many other options off the agenda due to COVID restrictions. The range of makes and models of traditional and off-road caravans, mobile homes, RVs, campers and camper trailers is vast, with selections to suit families, singles, males and couples. Many new buyers have been purchasing their first caravan and exploring Australia as they ‘holiday at home’. But while Australia had posted extremely encouraging economic outcomes which indicated a bounce back from the COVID-19 impacts, outbreaks in multiple states once again triggered the reinstatement of restrictions.

Life in Australia had been approaching some semblance of a new ‘COVID’ normal for a time. But the latest outbreaks and lockdowns which have affected multiple states are concerning for many people. The whole coronavirus scenario on a global basis may raise general apprehension and uncertainty in regard to moving forward with life decisions. Especially in regard to making a caravan purchase with a finance committee. In these somewhat insecure times, we provide certainty around caravan finance by explaining terms and terminology with both secured and unsecured caravan loans.

Is my Caravan loan secure?

When times are uncertain in any respect, whether globally or on a very personal and individual level, one question that those with loans and finance may be wondering is how secure their finance actually is. If circumstances in your world or across the world change, what security do you have in regard to your loans? What would change and could change with your finance deals?

We’ll start this explainer with the definition of the words ‘secured’ and ‘security’ in the finance sector. When a caravan loan is secured the security aspect actually refers more to the lender than the borrower perspective. The caravan is used as security in a Secured Caravan Loan. This means as the guarantee against the monies being extended by the lender. The caravan is the security for the lender if the borrower defaults on the loan.

In the event of a borrower not being able to meet their loan repayments, the lender holds the right to repossess the caravan and sell it to recoup the money that is owed to them on the loan. There is an established process in regard to repossession that lenders follow and it may be preceded by repeated requests for payment and possible discussions with the borrower. If the amount the caravan is sold for does not meet the amount outstanding on the loan, the borrower may be pursued for the difference.

For borrowers, a secured loan does offer peace of mind in that if they are unable to meet their payments repeatedly, the caravan is available as a guarantee. If facing potential difficulties, the borrower may choose to sell the goods and finalise the loan with the proceeds and circumvent any action by the lender.

With Unsecured Personal Caravan Loans, no security is offered for the loan. This may occur where the caravan is not considered suitable security by the lender. In these instances, we offer Unsecured Loans. As there is no security, the lender attaches a higher interest rate to cover the increased risk factor. In some instances, security through other assets may be requested. Should a borrower default on an unsecured loan, a process to recoup funds owed can be pursued by the lender.

A Secured Caravan Loan is our most popular loan and suits most new caravan purchases and most of our customers.

Security through Caravan Finance Fixed Rates and Terms

Security is afforded to our Jade customers through the fixed elements that we incorporate into both our Secured and our Unsecured Loans.

The interest rate on secured caravan loans is fixed for the entire term of the caravan loan. This can provide a sense of security for borrowers that regardless of what happens with interest rates in general, their loan will remain unchanged. With caravan loan terms available up to 7 years, that’s many years of confidence and assurance.

With unsecured loans, the interest rate may be fixed or it may be variable.

The terms on both our secured and unsecured loans are fixed. This fixed-term when taken with a fixed interest rate delivers a fixed monthly repayment. This repayment amount remains unchanged over the full term of the loan.

So security in terms of borrower reassurance and confidence can be realised through the fixed aspects of their caravan loan.

To get a better understanding of your finance, head over to our online caravan loan interest rate calculator.

Caravan Loan Security through Expertise

Our Jade customers can also realise a level of reassurance that their best interests are being addressed through the entire loan process. We operate as a broker-style lender with the best interests of each customer central to every stage of sourcing the cheapest interest rates and most attractive loan conditions to suit the individual.

We scour the lending scene through our vast accreditations to secure the cheapest caravan loan quote and provide our customers with the confidence that all bases have been covered with their loan. A task that can be extremely challenging when carried out by loan applicants themselves.

With your Jade consultant providing the highest levels of finance expertise and professionalism, our customers can be assured that whether times feel uncertain or insecure, we will deliver confidence and assurance and the cheapest fixed interest rate caravan loans.

So don’t put plans on hold, get moving with your caravan buying arrangements and speak with us for a loan quote.

Contact 1300 000 003 for a cheap interest rate caravan loan quote.

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.

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