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Tips on Financing A Caravan

Covid 19 has created a new normal when it comes to financing your dream Caravan, Motorhome or Camper Trailer. 12 months have passed, and it seems like an eternity with all we have been faced with but the reality has seen a real change in the way financiers look at all potential borrowers.

There has never been a better time to invest in a new lifestyle choice. Whether you’re a seasoned caravanner or a camper trailer enthusiast who likes to explore the great outdoors or perhaps you have great memories from your childhood family camping holidays.

We have this great country to explore and your choices have never been as varied to cater for every family. Combine this with great interest rates we currently have on offer there has never been a better time to jump in the deep end and start living the dream.

Cutting to the chase, you have two real choices when looking to borrow money. Firstly you have your traditional lending institutions like your banks or the second is to use the services of a professional brokerage like Credit One.

Banks generally only have one choice and often do not view caravans and camper trailers as an asset loan. Couple this with a tightened lending criteria which makes it feel like an impossible task and usually ends in a long drawn-out process.

Credit One offers far more choice with a large number of options and has the ability to tailor a loan to suit each individuals’ personal financial circumstances. Our financiers view these as an asset loan which means having access to great interest rates.

What to look for in a Loan

When searching for the perfect loan you need to consider many things:

  • How you want to manage the loan
  • Do you want the ability to make extra payments and pay it off sooner?
  • The term of the loan
  • How much do you feel comfortable paying?

I call this last one the sleep test. When you put your head on your pillow at night, are you comfortable with your repayments? Or is it going to keep you awake?

You need a loan that does not make your new purchase just an expensive driveway ornament. This is where Credit One can help you with your choices.

Options

There are a couple of choices when you are considering options. You can either call to discuss once you have found the perfect unit either prior to or after placing a deposit. You can discuss what the repayments look like and obtain an indicative interest rate. You can also use a caravan finance calculator to get an estimate of your repayments.

If you are unsure of the best unit for yourself and you are just wanting a pre-approval, the process is just as easy. At Credit One we want you to feel completely comfortable and will work with you every step of the way.

How Much to Borrow?

Do not feel you need to borrow the entire amount and use all your cash reserves.

You may want to pay a deposit and borrow the remainder. You may want to borrow the entire amount. Most dealers will refund your deposit at the time of pick up if you are borrowing the full amount and have better use of your cash.

You may want the unit that has more features and falls slightly out of your budget by taking a small loan. By chatting with the Credit One broker, they can discuss all the options available to you.

Getting A Caravan Loan Is Simple

It has never been easier to secure finance. Once we have taken your application and received your supporting documents it can be approved on the same day.

Credit One has access to over 40 financiers to find the very best option for you at the very best interest rate. A standout feature of Credit One is having their own in house money through NML (National Motor Loans).

If for some reason you are unable to obtain finance through the normal channels the brokers at Credit One have access to a financier who is more understanding of the current financial climate we are in.

When To Apply For Finance

Given current industry demand is so high and there can be quite a wait for delivery on a new unit or have the ability to make an offer on a secondhand unit with confidence, it’s never too early to apply for finance.

If you are purchasing new, applying early is the key, you have confidence knowing you have pre-approval. Once approved the loan just sits and waits for the build to be ready. But keep in mind that approvals are only valid for 90 days. After that time, the lender will need to re-assess your application if the loan has not settled.

You do not start making payments until you collect your new unit and if the interest rates have fallen you will have a double win. If you are buying second hand our fast-track approval process will see you in your caravan, camper, or motorhome faster. And thirdly, with demand so high in the secondhand market cash is king, you see the unit you want you can make the offer and beat out others chasing the same unit.

Caution

If purchasing a new unit and there is a lead time before collection, and you have already been approved you need to be mindful not to change your financial circumstances without discussing with your Credit One broker.

Credit One brokers have access to more financing options that will see you with a tailored loan. Call Credit One today to discuss your options on 1300 273 348 or submit an online application.

Written by Wayne Park

Credit One Caravan Finance Expert

If you’re looking to upgrade your caravan, camper, boat or 4WD, get a 30 second quick quote on finance with CreditOne – Australia’s best rated finance broker.

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