When selecting a caravan, camper trailer, RV or motorhome to purchase, most buyers will have their checklist. They’ll be across the key inclusions that they want and they’ll know how to spot the variations across different makes and models. In order to achieve the cheapest RV loan, caravan buyers should be able to easily identify the differences in caravan loans and across the lending market.
Buying a caravan is not something that most people do too often in their lifetime and applying for finance is also, for most people, not a regular occurrence. But the Australian lending market is constantly developing with new lenders and changing interest rates and loan products. So if it’s been some time since you last sought a loan, it could be worth updating your knowledge, specifically in regard to caravan finance.
Jade Caravan Finance is a specialist lender in the RV market, accredited with both banks and non-bank lenders. We share our expertise to highlight what buyers may come across in variations in caravan loans and in respect to products and approaches by different lenders. Best of all, we provide hints on how to achieve the cheapest caravan loan.
Caravan Makes and Models: Loan Differences
There are quite a range of RV models now on the market and as the manufacturers further embrace innovation and development, the options are growing. From traditional caravans, through off-roads, hybrids, camper trailers, pod camper trailers, toy haulers, mobile homes and RVs the market is extensive.
From our point of view, the same loan products apply to all these types of new RVs. But differences will emerge between new RVs and used caravans. This will be fairly universal across the lending market. It can present as differences in the interest rate and in regard to secured or unsecured loans.
The interest rate which you will see advertised by lenders will be for new goods, unless it is specifically stated otherwise. There is an advertised rate and a comparison rate. Used goods can attract a higher interest rate.
The main loan types for caravan finance are the Secured Caravan Loan and the Unsecured Personal Loan. The new v used difference may emerge in respect of the choice of loan product. Where the lender does not accept say a second-hand caravan as suitable security for a Secured Loan, the buyer may opt for an Unsecured Personal Loan.
Variations in the Lender Market
There are many lenders active in the caravan finance market. Jade Caravan Finance is accredited with many of these in order to be in a position to offer our customers more choice and so we have the ideal lending panel from which to source the cheapest loan option.
The market includes: banks, finance companies, caravan manufacturers and finance broker lenders such as Jade. When selecting a lender, ensure they are a Licensed Credit Provider as governed by ASIC. This ensures consumer rights are upheld and the lender abides by the Responsible Lending Regulations. Essential for consumer safety and security in regard to the finance process.
The name of the loan products will vary in the market. While Jade offers a specific Secured Caravan Loan, some lenders will be more general with their consumer loans. The loan suitable for caravan finance may be simply, Secured Personal Loan.
Check the details and specs are identical if comparing loan offers. Individual banks and lenders price and structure their caravan finance to suit their own requirements.
Variations can occur in a number of aspects including:-
- Fixed or variable interest rate
- The interest rate
- Maximum and minimum loan amounts
- Maximum and minimum loan terms
- Deposit required or no deposit finance available
- Applicant eligibility including credit profile
- Break fees, finance default conditions and terms
Fees and charges will also vary across the lender market. For a quick snapshot of the caravan lending market, refer to our Lender Interest Rate Comparison Chart. It shows the different loans with rates, currently offered by a selection of banks and lenders. Note the variations and the similarities.
The interest rates are probably the stand-out variation. Lenders will price their loans based on their own guidelines and interest in a certain market. If offered finance through a manufacturer, it will be highly likely that it is through a finance company. Check the fine print and check quotes for any ‘hidden’ commissions. This could mean you can get a cheaper deal elsewhere.
Rates advertised are for applicants with good credit create an anchor text for the keyword "cheap caravan loans" that will be used as a link for a website. Try to use different words.
Securing the Cheapest Finance
Cutting through this large lending market and across the swathe of caravan loan products to find and secure the cheapest loan can be a challenge if you do it all yourself. We offer a number of shortcuts to assist caravan buyers in securing cheap caravan loans, faster and easier.
The key shortcut is using our services to source the caravan loan on your behalf. Yes, our consultants will relieve you of that onerous task and source you the cheapest quote from across our vast lending panel. While negotiating directly with lenders yourself can be somewhat impossible in many cases, our consultants have the contacts and the skills to negotiate with our industry-level contacts in the lender organisations.
There are variations across the caravan finance market and jumping into a loan arrangement just because it appeared convenient may cost you paying too much over the full term of the loan.
If sourcing your caravan loan yourself, watch out for these variations we have noted and if it sounds too good to be true, it likely is. To make life easier, just give us a call and let us handle the process for you.
Contact Jade Caravan Finance on 1300 000 003 to handle your caravan finance requirements
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.