The onset of the pandemic in 2020 and resultant international travel restrictions and border closures saw an influx of new buyers to the caravan and RV sector. Buying a caravan was seen as a great alternative when interstate and international travel was unavailable. It was also seen by some buyers as a safer way to holiday compared with hotels etc. Being able to stay with fewer people presented a lessened risk of catching COVID. As the RBA slashed rates during this period caravan finance became more affordable and added to the attraction.
But the downside of this increased demand combined with lockdowns for the caravan manufacturers and global supply chain issues, led to a supply shortage. As most caravans in Australia are built to order, some buyers were reportedly waiting extremely long periods to take delivery as manufacturers struggled to keep up. This scenario also sparked interest in caravans for sale on finance as buyers sought various ways to secure their desired models.
Come mid-2022 what’s the situation looking like? Is this the right time for RV buyers to make that purchase? Will stock be available? What’s the outlook?
After a long period of record low interest rates, lending rates are now creeping back to normal levels. Buyers will be keen to make purchases with finance before further rate rises are announced. The Caravan Industry Association Aust has released its latest report on the sector which may assist buyers time RV purchases ahead of caravan finance rate rises.
Caravan Association: State of the Industry Report
The State of the Industry Report from the Caravan Industry Association of Australia states that 2021 was a period of record highs in many sectors across the RV industry. The industry continued to thrive, despite the challenges presented across the economy,
The Association’s CEO, Stuart Lamont, said that the caravan and camping sector rebounded in 2021 from the issues of 2020 while many areas of the tourism sector remained constrained. He said that not only was there an increase in the tourism aspect of the industry but RV sales were also at record levels.
The report reveals supply to market (sales) was up 14% on the record levels which were previously reported way back in the ‘70s and 12% up on 2019 figures. 55% of the total RVs supplied in 2021 were made in Australia. 12.6 million trips were recorded with 50.6 million nights. 47% of the trips were by those in the 30-54 year age group.
The report acknowledges the role that caravans played through 2021 beyond the holiday and travel market. These include providing accommodation for farm workers to protect from COVID-19, providing temporary housing during the floods and the motorhomes used as medical units to remote communities.
Mr Lamont said that the dream remained alive for those seeking a holiday and travel experience which was affordable and safe. He said that the Association remained optimistic looking forward, despite the obvious challenges.
The reports says the conditions for the industry remain complex. These are emanating from impacts on workforce due to the ongoing COVID situation and the effect that has on output. Global supply chain issues and the tightening economic conditions are also seen as challenges for the RV manufacturing sector. Despite all this, the Association remains very optimistic for the industry in 2022 and into the future.
Buyers may be motivated by this optimism to proceed to start surveying the market to see which manufacturers have stock and are back on track with production schedules and delivery timelines. Getting along to one of the upcoming caravan shows in your area, such as the Let’s Go Show at Adelaide from 27-31 July or on the Sunshine Coast from 19-21 August offers the opportunity to speak with many manufacturers in the one place.
Attending a caravan show or any dealership for that matter, with pre-approved caravan finance can hasten the overall ordering and delivery timeframe. We offer pre-approved finance on all our loans with the Secured Caravan Loan the most popular loan for new RV buyers.
Outlook for Calculating Caravan Loan Rates
With the outlook for the caravan manufacturing sector appearing optimistic, those considering caravan finance for their purchase will also be interested in what’s happening with caravan finance rates. The RBA has started its normalising of rates and withdrawing the pandemic support provided by way of a record low cash rate.
The rate hikes by the RBA have resulted in rate rises across lending markets including RV finance. The RBA has strongly indicated that further rate rises are ahead, possibly in August. By engaging Jade Caravan Finance to source your loan, you can be assured we will be seeking the cheapest rate loan from across our vast selection of lenders. For a clear understanding of potential repayments, you can use our caravan loan repayment calculator. The same rate would apply for pre-approved and post-purchase finance.
Contact Jade Caravan Finance on 1300 000 003 to discuss cheap caravan finance.
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.