At Bestsmallcampers, we ensure you enjoy a stress-free process if you decide to purchase a caravan. We offer access to great deals and a wide range of finance packages that brings your dreams to reality. Contact us either through mail, phone or text to get started.
Find out more about caravan finance below
Touring Australia is one of the most popular activities for Australians and visitors alike. And what better way to enjoy the fantastic landscape that Australia offers than on a road tour. As such, just like hundreds of people take to the road, you also enjoy spending days and driving kilometres to spend your holiday.
However, whether you’re alone, with friends or family, you’ll usually need a quality Caravan to make the experience worthwhile. Now you’re thinking of hiring a Caravan, right?
Well, the thing is that you could just buy a caravan instead of hiring one. However, this might come off as very expensive. For instance, purchasing a new trailer may cost an average of $49, 000 and as much as over $150, 000. Daunting right?
Well, the good news is that you can easily finance the purchase instead of making an outright payment. However, caravan finance is quite specialised and may appear complicated. Don’t lose a pound.
At Bestsmallcampers, we offer the best options, so you enjoy a smooth sail through the process.
What is a Caravan Loan?
This involves a form of a loan through which you can raise money to purchase your dream caravan, whether used or new. As such, instead of bearing the lump sum of purchase, you can get a finance company to carry it.
In return, you discharge a monthly financial obligation – repayment – to the company. However, you must have the financial capacity to make these repayments as at when due.
So, a caravan loan is an option that allows you to own your caravan outrightly, save scarce capital and easily repay the loan over some time
How does Caravan Financing Work?
It involves borrowing the cost price from a willing party. Also, you will need to provide details about yourself, the specific model you intend to purchase, and its cost.
Afterwards, your application gets reviewed, and you will be contacted as early as possible about your application. You will then be informed about the terms of the financing. And you can further discuss or request clarifications on any issue that you deem confusing.
Also, the terms will generally contain details like how much you intend to loan and the interest payable on the loan. It will also include the specific rate of repayment and the duration within which they expect you to complete a refund.
You might also need to meet physically with a trained finance adviser. This way, you get the best terms that suit your needs and financial capacity.
Afterwards, you will then receive the amount requested, and you can go on to purchase the vehicle. Alternatively, if you partner with a registered seller, you receive the caravan, and you only need to begin repayment as agreed.
Used vs New Caravan
When looking to finance the purchase of a caravan, you have an option to either buy a used or new caravan. And this will depend mainly on your financial capacity to repay. For instance, you can get a used caravan at an average cost of $39, 000 while a new one at an average price of $49, 000.
So, analyse your budget before making a choice and be sure that your finances can cover the requirement of monthly repayment. You can utilise a loan calculator to determine this.
So, if you believe you cannot afford the financial commitment of a new caravan, it might be wise to get a used one. All you need to do is ensure you get a vehicle that fits your needs and is in perfect working condition. This way, your loan agreement fits into your budget.
Types of Caravans you can Purchase
Types of Finance
This process is similar to every personal loan that is out there. All you need to do is find a willing financer, take a loan agreeing to specific terms and then proceed to make your purchase.
It differs from a hire purchase financing because you get ownership of your caravan from the initial period. All you then need to do is make repayment as agreed upon.
This involves financing your purchase by dealing with a licensed credit intermediary. They purchase your choice of a caravan on your behalf and then transfer possession to you while spreading repayment.
All you need to do is decide on the down payment sum, your intended monthly payment and the agreement term. After this, you submit your application to a finance company.
When they then approve of your application, you take possession of the caravan and begin monthly payments. Then, as soon you complete payment – cost price plus interest – you then have nothing to worry about as you get ownership.
What Documents are Necessary to Obtain a Loan?
This is a function that is usually integrated into various sites that enables you to estimate how much it would cost you to finance a purchase. All you need to do is input your finance option, your payment duration, the amount you intend to borrow and the annual interest rate.
It automatically calculates it and provides you with an indicative quote. Black Horse offers a useful loan calculator. You can click here to have a go.
Advantages of Caravan Finance
Getting Expert Advice throughout the Process
As already noted, financing the purchase might be quite tricky. That is why you need a team of professionals to put you through the process.
At Bestsmallcampers, we provide an adept team that is available for your every need. We will guide you through all available options while explaining the terms of each option thoroughly. We will also let you know about their benefits and disadvantages.
We provide personalised advice for your needs. As such, we will take into consideration your preferences and personal circumstances. We will ensure you strike the best deal regardless of your choice and its cost.
Frequently Asked Questions (FAQ)
Yes, like every loan, you will need to pay interest if your application is accepted. The interest requirement usually gets spread across the agreed duration of time. Depending on the lender, it can be as low as 3%.
The good news is that it is a fixed rate. As such, you will know what exactly you will be paying throughout the agreement.
There is no uniform eligibility list as each lender sets its standard. However, if you do not have bad credit, you are more likely to be eligible.
Also, being a pensioner or self-employed does not mean you won’t find a loan. We can always find the right lender.