Rising fuel prices are becoming a key concern for caravan owners. A cost which is compromising the economical nature and appeal of caravanning. An option which, in general, is considered a relatively inexpensive form of travel and holiday as far as day-to-day expenses are concerned. But towing a caravan is known to reduce the efficiency of the towing vehicle and with rising fuel prices that can mean a serious bite into the budget. Purchasing a new RV with cheaper finance for caravans can be a smart move to offset the rising prices of fuel and cut the costs of touring and holidays.
The cost of fuel is recognised as one of the major expenses for caravan tourers. Those that head off to explore Australia over several weeks or even months can face hefty and rising fuel costs as prices soar.
While fuel pricing is not something you personally can control, it could be worth considering where else you can cut the costs of caravanning. Reviewing your budget to ensure that caravanning remains an affordable experience that you can continue to enjoy on a regular basis or over extended periods without worrying about the cost.
If the caravan has been purchased with finance, the loan repayments may also represent a significant outgoing. Unlike fuel costs, loan repayments may be something you can control. Reducing the repayments by securing cheaper caravan finance is a logical and practical move to reduce the impact of fuel price rises on holiday and travel budgets. It can also make the overall RV purchase more affordable.
Of course if the caravan van is set up for remote travelling, then free camp sites can be utilised to cut the cost of park fees. But taking a holistic approach to expenses with a focus on the finance side may deliver a positive, longer term outcome.
We share our expertise on how new caravan buyers can secure cheaper caravan finance and how existing caravan loan holders may consider refinancing to achieve lower loan repayments to reduce outgoings.
Getting Cheaper Interest Rate Caravan Finance
We share some basic tips and hints on how to achieve the cheapest possible caravan loan:-
- The interest component of a caravan loan is the major contributor to the cost of the loan. So the objective of those seeking to achieve the cheapest loan is to seek out the cheapest interest rates.
- The interest rate offered on loans for caravans varies across the lending market.
- Buyers should compare interest rates from multiple lenders or engage a broker such as Jade Caravan Finance to handle that process for them.
- Don’t jump into accepting dealer finance just because it seems quick and convenient. Check and compare other loan options and interest rates to ensure you are agreeing to the cheapest option. Refer to our Compare Interest Rates Guide to see what some lenders currently offer by way of interest rates on caravan loans.
- Ensure you have a good credit rating prior to applying as the rates publicly displayed by lenders will apply to applicants with good credit.
- Old and new caravans can attract different interest rates. Buying new will attract the lowest rate.
- Check if the interest rate is fixed or variable. We offer fixed interest rates on caravan loans to provide our customers with the peace of mind that their repayments will remain the same as they enjoy their travels.
While some banks and lenders are not in a position to or have a willingness to negotiate on rates directly with customers, your Jade consultant can handle that process for you.
Achieving Lower Repayments
Those seeking to reduce how much they need to pay on their loan on a monthly basis, may focus more on the repayment amount rather than the interest rate. But they are closely linked. While the interest rate determines the overall amount of interest payable on a loan, it is the term of the loan in conjunction with the rate which determines the repayments.
Varying the term of the loan will result in a change to the monthly loan repayment. Using our Caravan Finance Calculator is an easy way to see how this works and formulate your own loan goals.
A longer loan term will deliver a lower repayment but a larger interest total as the loan is taken over a longer period. A shorter term delivers a higher monthly payment but less interest payable in total and the caravan is fully owned sooner.
Consider Refinancing
If you are mid-way through say a 7 year caravan loan and you would like to enjoy lower loan repayments to balance rising fuel costs, refinancing may be an option. Speak with one of our consultants about the possibility to refinance RV loan and we will lay out the options for you.
The process will involve finalising the existing loan early and as such break fees will usually apply. These, in addition to the costs of the setting up the new loan need to be factored into the overall viability of the process for each individual.
General Fuel and Cost Saving Tips
There are a few ways that caravan owners can increase the fuel efficiency of their travels and reduce some of the other costs related to the caravan itself:-
- Wind deflector installed on the towing vehicle
- Ensure tyre pressure is optimum for towing
- Reduce speed
- Utilise apps to source the cheapest fuel when on the road
- Keep your caravan well-maintained with regular servicing and cleaning to reduce the costs of repairs
- Do regular checks and replace worn and wearing components early to avoid larger repair bills down the track
Long Term Benefits
Addressing achieving a cheaper caravan loan when you make your initial caravan purchase, can ensure you enjoy lower caravan repayments over all the years of your caravan finance, even when fuel prices (hopefully) stabilise or go down.
Cheaper finance may also allow you to upgrade to a better model or to include a range of options which may assist to reduce fuel usage or make the vehicle and you less dependent on staying at holiday parks. Extra water tanks, extra fuel carrying space to load up with cheap fuel when you come across it and other efficiency measures offered by manufacturers which may reduce gas and other consumptions can be considered.
To discuss how we can assist you in achieving a cheaper caravan loan to offset rising fuel costs contact Jade Caravan Finance at 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.
