With a vast range of different RVs to select from, buyers seeking finance may be wondering if the finance decision will be equally as extensive in range of choices and options. Wondering what is the range of RV, caravan and camper trailer loan products on the market and what interest rates apply.
When deciding to purchase a recreational vehicle (RV), buyers are presented with a vast choice of makes, models, categories and styles. Many can be individually configured to suit the specific preferences of the buyer with inclusion of add-on packs. Each buyer will have their own criteria when it comes to selection including the terrain intended to travel on and through, the level of luxury, comfort and self-sustainability required, accommodation numbers, towing vehicle and of course price.
When it comes to sourcing finance to make the purchase, buyers will also have a set of criteria around their caravan loan. Does the choice of caravan loan product have as many variants, differences and options as the vehicle itself? As specialist leisure vehicle lenders, Jade Caravan Finance answers the key questions asked by caravan buyers when seeking finance.
Loan Per RV Type
Within the broad term ‘RV’ there are a number of vehicle categories including traditional or conventional caravans, camper trailers, mobile homes which are typically and broadly referred to as RVs and campervans. Within each category there are different types including off-road, semi-off road, all terrain, pop-tops, slide-ons, toy haulers and other terms assigned to specific makes or models. For those interested in acquiring one of these vehicles, exploring loans for RV campers can provide financial flexibility and options tailored to this type of purchase.
When it comes to the finance sector and other areas, the term ‘caravan’ or ‘RV’ is generally used as an umbrella description to include all types and models. Loans for all RVs are available under the one finance category of ‘caravan loans’.
When it comes to campervans which comprise a car and a camper/caravan, some buyers may wonder if that requires car finance or caravan finance. At Jade, we define a campervan as a recreational vehicle and include these vehicles in our caravan loans.
Secured and Unsecured Caravan Loans
We offer two types of loans for financing caravans:-
- Secured Caravan Loan
- Unsecured Personal Loan
The key differences between these two types of loans include:-
- The lender uses the RV as security against the loan with a secured loan. The buyer has full use of the vehicle from settlement of the finance and purchase and the lender registers their interest in the asset on the PPSR.
- As the title suggests, an unsecured loan does not essentially have an asset to secure the loan. Some lenders may request another form of security when making a loan offer and these decisions and any special conditions are negotiated by the Jade consultant with the lender and based on individual circumstances.
- As there is security against the loan, the interest rate on a secured loan is typically lower than for an unsecured loan. Our secured caravan loans are offered at a fixed interest rate but unsecured loans may be offered at either a fixed or variable rate. Refer to our Interest Rate Comparison to see the difference interest rates currently being offered.
- The decision as to which loan is most suitable to a purchase is predominantly determined by the actual caravan itself and if the lender is prepared to accept the vehicle as security against the loan.
The Secured Caravan Loan is by far the most popular and widely used loan for the purchase of new caravans. It suits all types of RVs and most buyer types.
Unsecured Personal Loans could be used for older, used caravans which the lender does not accept as security; fixer-up vehicles which require extensive refurbishments; and share caravan arrangements where multiple parties are involved in the purchase.
Pre-Approved Caravan Loans
Both our secured and unsecured caravan loans are available as pre-approved finance. This means that prior to making a purchase commitment, the loan is applied for and the loan application progressed through the various stages to the point of an offer being made and the application approved by one of our lenders.
The exact amount required to be borrowed may not be known at that stage as the buyer may yet to finalise their van specs and optional extras. When the purchase is completed, the loan amount is finalised based on the dealer’s invoice.
Pre-approved loans are extremely popular as they provide buyers with knowledge as to how much they are approved to borrow and what repayments will be and hence they have a target purchase price to aim for.
RV Finance Interest Rates and Lenders
The types of loans offered for caravan purchases does vary across the lending market. Not every bank and every finance company will offer a specifically designated ‘caravan loan’. Some will include caravans along with boats and other leisure goods acquisition in a general Personal Secured Loan category. For those interested in RVs, it's also essential to be aware of RV loan interest rates as they can vary and impact the overall cost of the loan.
We have provided a handy reference guide of a range of leading lenders with the loan products they offer with the relevant details and interest rates.
As broker-style lenders that specialise in this area, Jade Caravan Finance is accredited with a large number of lenders and our consultants handle the loan sourcing and arranging for our customers. Saving you time to spend on deciding the custom finishes, variants and treatments for your caravan and to start planning your first caravan travel route.
While the choice of RVs is vast, the finance selection is much easier to manage by working directly with us to source and secure your caravan loan.
To discuss the best and cheapest loan for your particular RV purchase, 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.
