Making the decision to get into the caravan and RV lifestyle is a very exciting time. The lifestyle offered and the vast and varied holiday and travel options available make this a highly-sought after experience. The process of selecting the right caravan can be an exciting but challenging experience. There are so many amazing makes and models on the market to choose from and many factors to take into consideration. But did you know that your choice of lender for your caravan loan can have an effect on the finance you are offered? We provide information on selecting a caravan finance lender, the options available and how the choice may impact the cost of the loan.
The Caravan Lending Market: Overview
A caravan purchase is not something that many people do very often in their lifetime. So when the situation does arise and buyers are seeking finance to make the purchase, they will be needing to assess what is available.
The leisure and recreation finance market comprises both general lenders such as banks, dealer finance often provided through manufacturers or the dealers, non-bank lenders and specialist leisure market lenders such as Jade Caravan Finance.
In addition to the range of lenders available, buyers also have the choice of handling the finance process by themselves by going direct to the bank etc of by engaging a specialist broker-style lender such as Jade to take on the entire process on their behalf.
Choices made at the outset can impact the interest rate offered, terms and conditions of the loan and other factors. When you think that a caravan loan may be over a term of up to 7 years that is a significant amount of time to be committed to repayments that don’t work for you or with an interest rate that is higher than you could possibly have achieved.
We work through the different options so you can arrive at the right decision for your finances.
Review of Lender Options
Most caravan buyers seeking finance will immediately start searching the internet for what is available. What might quickly become evident is that specific caravan loans may not be that easy to find. Many general lenders such as major banks and some finance companies, may not have a specific loan titled ‘caravan loan’.
These lenders operate across many markets and while lending for caravan purchases, their loan types may not immediately reflect that fact. To simplify their offering, many of these types of lenders will offer a more general Secured Personal Loan.
A secured loan is a loan where the asset or goods being financed and purchased are used as the security against the loan. The format is quite standardised across the finance sector. What is not standardised is the interest rate offered and possibly other aspects.
Banks are open for all to approach and apply for a loan. But when doing so, few if any applicants will have much if any bargaining power to negotiate the interest rate down or come to an agreement on any sticking points with loan conditions.
Buyers will of course want to source a number of caravan loan quotes in order to compare and to make an informed decision, confident that they have secured the cheapest offer. Great intentions and the right way to go – to check out a large number of lenders.
What is not so great is the time involved in doing that and the potential impact that applying for multiple loan quotes can have on an individual’s credit report. Lenders do report loan applications to the credit agencies and multiple applications for the same loan can reflect poorly.
Using a specialist RV and caravan lender such as Jade Caravan Finance can avoid and avert many of the downsides of DIY loan sourcing and deliver many upsides. As specialists, we do offer a Secured Caravan Loan which reflects our interest in serving this market sector and our understanding of the needs of those seeking finance.
We operate in the style of a finance broker which means we have access to a large selection of banks, finance companies and other non-bank lenders from which to source the most appropriate and cheapest finance for our customers. Our services are available all caravan buyers and for the financing of all types of RVs and caravans.
Comparing Interest Rates
The major pluses of dealing with a specialist caravan lender is having access to this vast lending market from which to secure the best loans and having the bargaining power to negotiate on caravan loan rates and terms.
The RBA sets the official cash rate but from that point, lenders then set the interest rates that they are prepared to offer for the different loan markets within which they operate. So the interest rates offered on caravan loans can vary significantly across the lender market.
To easily illustrate many of the points we have raised here, we refer you to our Interest Rate Comparison Chart. We have compiled a listing of some popular and leading banks and lenders along with the loans they have available for caravan finance. It’s easy to see the differences in some of the loans, some offering fixed or variable interest rates and in the rates especially.
By entering the amount of your loan you will see the estimated repayment for each lender. That will give you a good idea of how much less you may pay in caravan loan repayments by selecting a specialist lender such as Jade.
So when it comes to buying that caravan, make sure you pay attention to your choice of lender so you secure the cheapest loan.
To speak with a specialist caravan lender for a quote, 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.