Is it hard to get caravan finance?
The great Australian dream might be owning property, but hitting the open road with a caravan in tow comes pretty darn close.
But caravans and motorhomes don’t come cheap. So you usually need finance to fund the dream. That then begs the question: ‘Is it hard to get caravan finance?’
Let’s find out.
How does caravan finance work?
Much like any other loan, caravan finance is when you borrow money from a lender to buy a caravan or motorhome. In exchange, you get charged interest on the sum borrowed and pay it all back via regular instalments.
Like car finance, caravan loans can be secured or unsecured, fixed-rate or variable-rate, and come with different term lengths, interest rates and repayment options.
What should you do before choosing a caravan loan?
Several factors come into play when choosing a caravan loan. These include:
- The interest rate – which can vary significantly depending on the lender, the loan product, the caravan’s age, as well as your financial circumstances and credit score
- The loan’s length (or term) – which can impact your repayments and the total interest you pay over the life of the loan
- The loan’s features – such as redraw facilities, early repayment options and whether or not it has a balloon payment
- Any application, ongoing or one-off fees the loan comes with
First, you need to find the right combination of all these factors – so you end up with a caravan loan that works with your budget and suits your financial goals.
Next, you need to compare the market – so you don’t pay a higher rate than you should.
Finally, you need to research different lenders’ eligibility criteria – so you don’t get knocked back on your application and potentially damage your credit score.
Tricky, right?
What about dealer finance?
Dealer finance is convenient – so it can be tempting to think it’s your best bet when it comes to caravan finance.
It often isn’t.
Why? When you deal directly with a dealer, you usually get offered a limited range of finance options. As a result, you might not get the right caravan loan for your particular needs and circumstances. It’s also difficult to drive a hard bargain when you’re depending on the dealer for finance!
How to get a caravan loan without the hassle
Don’t worry if caravan finance seems complicated and stressful.
National Loans makes buying your caravan or motor home simple whether you’re after a new or used model, purchasing from a dealer or via private sale, or have good or poor credit.
Our expert caravan finance specialists are on hand to guide you every step of the way. They’ll compare the market, so you don’t have to. And once they’ve found you the right caravan loan, they’ll get you a great rate from our panel of over 30 lenders.
Even better, you can get your finance in place before you start shopping around with a pre-approved caravan loan. That way you’ll know how much you can spend and be able to negotiate with confidence once you’ve found your dream home from home.
Need caravan finance so you can hit the open road? National Loans can help – even if you’ve fallen in love with a second-hand model. Click here for a free online quote. If you want help, please fill in this online form or contact National Loans on 1300 358 358.
