The weeks leading up to the end of the financial year and into the new year usually bring a rush for purchases and with that an increase in finance applications including for caravan loans. At the end of financial year buyers would usually be flocking to secure EOFY discounts and deals offered by caravan and camper manufacturers and securing their caravan loans.
But in 2022 the situation is quite different. The recent surge in caravan sales and pandemic-related issues which confronted manufacturers in 2020 and 2021 have led to production delays and lower stock availability. Delays are reportedly being faced by manufacturers in many sectors including caravans, which means broad-based, widespread EOFY sales this year are not as large as usual.
But there is still a rush on to buy a caravan and apply for caravan loans at this time. The reason? Rising interest rates. After slashing the cash rate to the historic low in November 2020 as a stimulus measure, the RBA has now embarked on a process of normalising its monetary policy position. In short, that means, raising interest rates.
The RBA acted at its May and June Board meetings to increase the cash rate quite significantly. RBA Governor, Dr Lowe, has also signalled a further rise will be made at the July RBA Board meeting. For caravan buyers the current cycle of rate rises can be an incentive to move quickly to acquire last minute caravan loans and purchase before the next rise.
So what happens when buyers need quick caravan finance? Are compromises required? Will the loans attract a higher interest rate or a premium?
Buyers in this situation will likely have a number of questions and the scenario may not be limited to beating the next interest rate rises. There may be urgency around sourcing finance to be in a position to purchase hard-to-find RV makes and models and to secure a purchase in time for upcoming travel plans.
For those seeking last minute loans, we address these matters and with information on how to go about sourcing that urgent finance while still achieving better interest rates on the caravan loan.
Need caravan finance in a hurry? Need to knows.
There is no problem with sourcing last minute caravan loans through Jade Caravan Finance. We are structured to react promptly to finance requests with quick quotes and fast approvals without making compromises on sourcing the cheapest rates. Whether our customers have all the time in the world to secure their finance or are in a race against the RBA clock, the service provided remains consistent in both quality and scope.
There is no difference in the type of loans available for RV purchases depending on how fast the applicant requires the loan. Our Secured Caravan Loan is the most popular type of finance for many new caravans, campers and other types of RVs. The lender accepts the van as the loan security, we source the finance at a fixed interest rate and a fixed loan term which results in fixed monthly repayments.
For buyers of used RVs, the lender will assess the condition and the age of the goods during the loan application approval process. Where the caravan is not considered suitable security against the loan, we can offer our customers the option of applying for an Unsecured Personal Loan.
The interest rate offered will be based primarily on an assessment of the applicant’s creditworthiness in relation to the loan amount requested. Creditworthiness refers to a credit profile or rating. The better an applicant’s credit score, the better the interest rate to be offered by our lenders.
Addressing problems or errors on a credit profile at the last minute may not be realistic as some of the processes can take time. So it is always advisable to work towards maintaining a good credit score.
How to source caravan finance quickly
The purchase of major goods such as RVs with finance are extremely important decisions. The urgency to secure a loan should not mean that buyers overlook the important steps to ensure they secure the cheapest interest rate loan and that the finance is suited to their needs.
Using our broker services can be a major time-saver for buyers compared with undertaking the task by themselves. Sourcing the cheapest interest rate finance on your own can involve making applications to multiple banks and lenders to see which makes the most attractive offer.
We cut out that hard work and time by being in a position to assess a vast section of the RV lending market instantly to acquire quick quotes at the cheapest available interest rate.
Buyers can expedite the process by having the information and financials required for a loan application form at the ready.
Sales were reportedly extremely strong at the recent Brisbane caravan show and with more shows on the calendar, the industry will be looking to that trend continuing. That tends to indicate that there are many keen buyers in the market for possibly limited stocks of RVs.
How do you get the cheapest caravan rates?
For buyers that means – be prepared! Have your finance sorted so you are ready to say YES and head to the top of the orders. There is no need to wait until you have selected or sourced your RV before applying for finance. Pre-approved caravan finance is available and can be secured ahead of attending a caravan show. Pre-approved loans attract our same caravan loan interest rate as loans which are applied for after a caravan buy is secured.
The need to secure a caravan loan quickly can be achieved without compromising on a better interest rate or on the professional services available through Jade to assist buyers.
Contact Jade Caravan Finance on 1300 000 003 for last minute caravan finance to beat upcoming interest rate rises.
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.