With so many holiday and travel options off the agenda many Australians have turned to caravans and RVs in their droves over the past few years of the pandemic. Even with most interstate and international travel restrictions eased, many are still taking a cautious approach to travel. With Omicron identified as a fast transmitting variant, holidaying and travelling in your own space makes a lot of sense. If you’ve made that choice and decided to buy your first caravan, chances are you will require finance. One of the first things caravan finance seekers want to know is what will the loan cost? Buyers want a fast and easy way of estimating caravan loan repayments to assist in the buying process.
Banks, finance companies and even some RV manufacturers that offer finance will readily display the interest rate they are offering on their range of loan products. Some manufacturers and suppliers that are offering finance might also advertise a ‘from $xxx per month or week’. But often there are asterisks indicating ‘conditions apply’ etc which can be confusing.
Jade Caravan Finance assists caravan buyers with tools for estimating caravan loan repayments so buyers can match their caravan purchase and their caravan loan to their budget.
Comparing Caravan Finance Loans
Before estimating repayments, buyers will first need to work out which lenders actually offer loans to purchase caravans. Browsing the personal loans sections of the major bank and finance company websites is one of the first steps most buyers will undertake. This is great except not all lenders will have a specific loan for caravans. Searchers may need to click through on a number of links to find out which if certain loans cover RVs.
Lenders that operate in the general consumer finance sector may offer a generic secured loan which is provided to cover many purchases including cars, boats and caravans. Buyers are also presented with the choice of a secured or an unsecured loan in many instances.
We assist buyers to clear much of the confusion by providing our Lender Comparison Calculator. This has been provided in a table format so it is quick and easy to brows and identify the details. We’ve selected a range of popular banks and lenders, many of which we are accredited with.
The table lists the lender and the name of the loan that lender offers for RV finance. It also shows if the interest rate offered is fixed or variable. An important factor for those looking to lock in a caravan loan in the current low interest situation.
Moving across the table, we show the advertised interest rate and the comparison rate offered by each lender. The first thing most will notice is the variation in interest rates offered by the different lenders.
Lenders decide what rates they will offer on their loans based on a number of factors. The official cash rate as established by the RBA is used as somewhat of a starting point. Banks and lenders must then allow for their own costs in sourcing their funds and of course their operating costs. The interest rate can also reflect what is known as their exposure to a specific lending market. Essentially that is how they assess the risk of lending for different goods which can also reflect their interest in lending in that market.
To estimate caravan loan repayments, all that our calculator users need to do is to put the amount their want for their loan and the number of years they want to repay the loan in the boxes at the top of the table. Enter those details just once and the calculations are made automatically across the entire list of lenders.
In the far column will be displayed the estimated repayments on the loan type for each lender. This is only an estimate as all fees and charges will not be accounted for in the calculations. But as a quick tool for comparing lenders and quickly converting the price of a caravan to what it may cost the buyer monthly, it is extremely useful.
The other tool we have provided for estimating loan repayments is our Caravan Finance Calculator. This allows users to easily vary the loan amount to immediately compare repayment estimates on differently priced caravans.
It also allows users to see how varying the number of years on a loan term changes the monthly repayment. Providing a guide to what they may want their individual loan structured. Assisting with questions such as should you pay a deposit to the dealer to reduce the loan amount or opt for a no deposit loan?
These tools are free to use and carry no obligation. To get a firm quote a call to us will be required.
Achieving Cheaper Repayments
The calculators are generic devices so they can’t allow for all the considerations that lenders will make when assessing individual loan applications. But if a lower repayment amount is desired, there are steps that individuals can take prior to applying to improve their prospects of a cheaper loan.
Lenders will review an individual’s credit rating as part of the loan application assessment. Ensuring this is in good order is important for securing the cheapest interest rate and offer. Affordability will also be assessed so paying down debts may also contribute to achieving a cheaper caravan loan.
When comparing all the different makes and models with varying prices, it is now an easy task to estimate the caravan loan repayments for each vehicle.
Call Jade Caravan Finance on 1300 000 003 for a quick caravan loan to confirm calculator estimates.
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.