The coronavirus pandemic has disrupted many aspects of business and personal lives over the past nearly 2 years. As vaccination rates reach the targets set by Governments, we are promised greater freedoms. But the impacts of extended lockdowns and other issues both in Australia and overseas are having effects on the manufacturing sector which are not so quickly resolved. The global computer chip shortage and supply chain issues for components are causing delays in delivery for many goods across many markets. For local caravan manufacturers, delays have been the result of both a massive spike in demand for new RVs, production slowdowns and shutdowns caused by lockdowns as well as in some cases supply of components.
While Australian caravan manufacturers are trying their best to keep their production apace with demand, it has been and continues to be a challenging scenario. Fortunately, the caravan industry was categorised ‘essential’ in the recent Melbourne lockdown and as such production could proceed, but not without restrictions, limitations and challenges.
In a recently released social media video, Crusader Caravans highlighted these challenges, with mention of supply chain issues, operating to a COVID-safe plan which limits the number of workers allowed to work inside a particular van at any one time and the needs of workers in regards to home-schooling and COVID testing and isolating.
For buyers, apart from having to wait for delivery of their new caravan, the challenges can also include timing their loan application and approval with the actual delivery of the vehicle. Buyers would understandably want to know prior to ordering that they would be approved for their loan and could secure the finance required for the purchase.
But when there can be an extended time period between loan application and caravan delivery, what happens? This is a very fair question and as specialist RV lenders, Jade Caravan Finance addresses some of the issues and offer potential solutions as to how we assist our customers with swift handling loan applications and approvals in the face of new caravan delivery delays.
The Caravan Finance Application Process
Caravan buyers have two main options when requiring finance to make their purchase. Either apply for finance prior to striking a deal and placing an order or apply for a loan after placing the order. The personal loan for caravan application is the same for both options with one key exception – the exact loan amount for a pre-approved loan may not be known so an estimated loan is applied for. More on pre-approved finance later.
Through Jade Caravan Finance, loan applications can be made online or over the phone. As licensed lenders, we operate under the ASIC Responsible Lender Guidelines in regard to consumer loan applications.
Under Consumer Law, applicants will need to provide information in regard to their income, financial situation, proof of identity, residential and employment status and other relevant information. Our consultants handle the application process for our customers and present the applications to our lender panel and negotiate with the lenders to achieve the cheapest interest rate caravan finance offer.
Lenders will assess the loan application against their individual lending guidelines and requirements and review the applicant’s credit profile. Maintaining a good credit score is key to achieving the most suitable and cheapest loans.
When an application is approved, a loan offer is made and presented to our customer by their Jade consultant. If accepted, the consultant then processes the application to finalise the loan. The final stage is settlement, where we liaise with the caravan dealer and lender to pay the dealer invoice. The customer can then take delivery of their caravan.
Pre-approved Caravan Finance
Many caravan buyers want to ensure that they are approved for the finance they require prior to making a commitment on a caravan. This is when pre-approved finance is ideal and in many cases, highly recommended.
The loan application process is the same except an estimate of the loan total is made at the initial application stage and finalised when the final dealer invoice is received.
Dealing with Loan-Delivery Lags
So the application process is straightforward but what happens when there is a lag between when a loan application is made and the caravan is actually available for delivery?
When handling the finance on their own, buyers may face a complicated process and may need to re-apply for their loan. Loan applications including pre-approved loans, do have a timeframe during which the loan must be acted on or the offer expires.
All loan applications handled by Jade are done so an individual basis and as such, any information provided in this forum is of a general nature. But we will outline how we may be able to assist buyers.
Benefits of using our broker-style lender services are many and not limited to achieving the cheapest loan. Caravans are individually manufactured and buyers usually face a wait time for delivery. Under COVID-19 circumstances that wait time can be longer than usual. But very few buyers will want to commit to a purchase without have their finance secured.
Assisting with your Caravan Financing
Our consultants work closely with our customers to tailor solutions which meet the requirements of the borrower, the caravan dealer and the lender.
Aspects which we would work through with our customers may include:-
- Situations where the manufacturer requests a deposit to commence production and the borrower is seeking no deposit finance with said deposit included in the loan.
- Handling progress payment requests from the manufacturer to be made during production.
- Changes to customer financial circumstances in the time between applying for the loan and delivery of the vehicle which may require a variation to the loan application.
- Changes to interest rates which would require a reworking of a loan offer prior to the loan being activated.
Solutions and ways forward may include activating the loan and the repayment schedule prior to accepting delivery; reviewing and amending the pre-approved loan application prior to settlement; varying loan structure to cater for the manufacturer’s payment requirements; and dealing with other individual requirements. Our customer interests are our focus and we work closely with all parties to deliver workable loan solutions to meet specific needs. As part of this commitment, we stay informed about the latest caravan finance interest rates to offer the best possible options to our clients.
To discuss how we can make a delay between applying for finance and taking delivery of your vehicle work for you, please reach out to us.
Call 1300 000 003 to discuss all aspects of caravan finance with a Jade Caravan Finance consultant
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.
