The recent increase in interest in experiencing the caravan holiday and travel lifestyle has brought a lot of first-time caravan buyers into the market. Many of these buyers will be looking to purchase the RV with finance. With availability of caravans ready for delivery tight with some manufacturers, smart buyers will want to be totally ready to buy as soon as they source the van they want. But which van do you want? One of the keys to buying preparation is matching the caravan purchase with affordable caravan loan repayments and interest rate.
Why and how do you do that? The 'why' is easy. So you don’t either commit to purchase a vehicle or to a loan that has repayments which simply don’t work with your budget. Or you settle for a less-than-you-really-want model thinking that is all you can afford when in reality, the repayments on a better van may be within your reach.
Matching the caravan purchase decision with estimated caravan loan repayments as a first step in the buying process can save time, avoid disappointments and provide greater assurance of achieving purchase-repayment balance.
To assist buyers, we provide tips and guidelines around matching repayments with the caravan you want before ordering.
Caravan Finance Interest Rates
First let’s start with interest rates. As most people are well-aware, interest rates are the key to loan affordability. What not all people may realise is that interest rates on different types of loans vary across categories of goods and across the lender market. Depending on the particular interest by a lender in extending loans in a specific area such as for caravans, the interest rate offered may be higher or lower than other lenders. This is why it's crucial to search for the best rate caravan finance to ensure you get the most competitive deal.
This is easy to see on our Lender Comparison Interest Rate chart. Rates in general have been at historic lows for the past 13 months due to RBA rate cuts. But the interest rate offered on different caravan loans does vary across the market.
A lower interest rate can mean lower repayments and a higher-level model caravan could become more affordable. To provide certainty over the full term of the caravan loan, buyers will usually want to be assured of a fixed interest rate loan.
Jade provides a fixed interest rate caravan loan. This means, when calculated with the fixed loan term, the resultant repayments will also be fixed. Some lenders do offer variable interest rates on some consumer loans. With the RBA tipping 2024 for a rate rise and caravan loans extending over up to 7 years – yes, it makes sense to secure a fixed interest rate loan at this point in time.
Under Australian consumer finance legislation, lenders are required to advertise a Comparison Interest Rate which includes fees and charges and relates to a specific loan example. Make sure you are considering the correct interest rate when checking out the market.
Pre-Purchase Loan Repayment Estimates
If browsing the prices of caravans and trying to guesstimate what loan repayments could possibly be on different makes and models is doing your head in – stop right there. Recalling high school maths is not required to calculate caravan loan repayments these days.
An alternative is that you could request quotes from multiple lenders either by phone or online and then wait for their replies to compare and provide a guide to affordability. But with caravans in short supply, delays can lead to disappointment.
The quick and easy way to match up the caravan that suits your travel style and your budget is by using our Caravan Finance Calculator. The calculator does not require any special skills and does not attract a fee or obligation.
The price of the caravan or the amount the buyer chooses to borrow to make the purchase, is entered in the loan amount. The interest rate we currently advertise is entered and the preferred loan term.
When using the calculator remember that we can achieve no deposit finance on new caravans and terms of up to 7 years can be offered. So the full purchase price of the RV including any optional extras that are required, can form the loan amount.
Once the data is entered and CALCULATE clicked, the monthly repayment for that loan is shown. Repeat the process for all the caravans you are considering to find exactly which make and model may have the monthly loan repayments in your ballpark. It’s only an estimate but it is a definite help in the caravan buying process.
When you find that perfect match, give us a call for a firm quote and to commence the loan application process. Matching the caravan to buy with estimated loan repayments prior to signing a sales contract is quick and easy, can reduce disappointment and increase the chances of buying the caravan that is ideal for your travel and holiday plans
For a quick quote on the caravan you are considering, contact Jade Caravan Finance on 1300 000 003
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.