If you have been thinking about purchasing and financing a Caravan or camper trailer you will find that there is a myriad of different financing options out there, from bank to finance broker, it can be hard to know where to go to secure the best overall deal.
Our top five tips on securing the best deal on your Caravan, Camper Trailer or Motor Home:-
- Head before heart
While it may be tempting to go above your limit to purchase your absolute dream caravan or camper with all of the bells and whistles, be careful not to exceed your budget. You want to ensure you can comfortably afford the repayments and not end up over your head.
It’s can easily get swept up in the heat of the moment at a caravan show and sign on the dotted line for something that’s a little out of your reach. We suggest that you try Credit One’s free online caravan finance calculator to help you determine your maximum borrowing limit, using a pre-determined weekly or monthly payment amount. This way you know what your budget is.
You should also allow for any unexpected expenses such as registration fees each year, insurance, servicing, tyres and general wear and tear on any appliances.
- Term and Interest rate
Finance brokers should take into consideration your pre-determined budget, give you a hand to calculate living expenses and compare all available options.
Our Finance Brokers will take into consideration the loan term, interest rate and any early termination or other fees and advice options on the best available overall terms – not just a good looking payment amount. Our Finance Brokers’ loan terms can be tailored from 2 years with no penalty for early repayment and to up to 7 years.
- Home Loan versus Secured Caravan or Personal Loan
Whilst adding a caravan purchase to your home loan might seem like a good idea, it can add years to the loan term and mean that you will pay loads more interest than if you had secured a low rate caravan loan secured only against the van. In fact, interest rates on caravan loans are at an almost all-time low and are only a little above that of even the best rate home loan.
The advantage of securing only the caravan is that the loan generally will run for a pre-determined term rather than being ‘tacked’ onto your Home Loan that could effectively extend your Home Loan for another 10 years or longer.
Talk to your broker to calculate the differences and the potential long term savings of a stand-alone secured caravan loan.
- Bank or Broker?
In recent years more and more astute caravan buyers have turned to brokers to compare all of their options for arranging the finance to purchase their dream caravan, camper trailer or motor home.
Whilst most banks can only offer you their own product, a specialist caravan finance broker can compare options from over 34 of Australia’s leading financial institutions. Our Finance Brokers compare offers from all of the leading banks and finance companies and can tailor repayment options to your individual circumstances and have the banks competing for your business.
Our Finance Brokers can also arrange no obligation, free pre approval before you shop – giving you the confidence to negotiate with a private seller or dealer knowing that you have a pre-approved limit.
- Enjoy your purchase!
We know this isn’t technically a tip! – but as you’ve probably spent months researching the caravan market already, comparing makes and models and attending the many caravan shows in your local area. Now’s your time to sit back and relax knowing that your finance broker has compared all leading options on your behalf and found a loan that suits your needs and budget.
Credit One is a leading broker and one that Caravan World recommends to our customers. Why not talk to a specialist Caravan finance broker about exploring all of your options. Call them today on 1300 Credit ( 1300 273348) or Visit them online at www.creditone.com.au