Finding the right finance for your caravan purchase is not always easy. With so many caravan loans from a range of lenders, choosing one that suits your needs perfectly can be a challenge. The key is knowing what to look for to get the best deal possible.
When you’re shopping for the perfect caravan loan, here are a few tips you should keep in mind:
Pay attention to the interest rates
Your caravan loan’s interest rate will affect its overall cost. The higher the rate, the more interest you must pay and vice versa. It’s why a lot of borrowers look for caravan loans with competitive rates or discounted rates so they can save more over the life of the loan.
It’s best to shop around to see the average interest rates. Having a general idea of what the rates are will help you make a more informed decision. You can also use a caravan finance repayment calculator to see how the interest rates affect the cost of the loan.
While searching for finance options for a caravan, it’s best to practice caution. Be wary of loans that advertise unbelievably low (sometimes even zero) interest rates. These loans may sound like a good deal at first, but they usually hide extremely steep extra fees and unfavourable terms.
Consider the additional fees and charges
In addition to interest rates, think about the fees and charges. Caravan loans can come with additional costs you must consider such as application fees, settlement fees, ongoing fees, exit fees, early payment fees, and the like. These fees may seem minimal at first, but they can pile up and easily be more expensive than you originally thought.
The fees and charges differ depending on the lender and the type of loan you’re taking out. It’s best to check the fees beforehand so you’ll have a better idea of the full cost of the caravan loan. You could also speak to the lender directly to learn about what other expenses are associated with the caravan loan.
Understand comparison rates
A caravan loan’s comparison rate will include its interest rate and related fees. By simply looking at the comparison rate, you can figure out the true cost of a loan. Sometimes borrowers are too focused on the interest rates and don’t consider the additional expenses.
The way it works is simple: if the comparison rate of a caravan loan is low, it means that it costs less compared to those with higher rates. Because it takes into account both the interest rate and additional fees, it’s a more accurate representation of the caravan loan’s actual cost.
Look at the loan features
Caravan loan features are not the same everywhere. Some lenders may offer loan features that other lenders don’t. Often, the kind of loan you’re taking out will also affect the features available to you. Variable caravan loans, for example, tend to have more loan features like additional repayments, offset sub-accounts, and balloon payments.
It’s important to find a caravan loan with useful loan features as these can help you manage your loan better. In some cases, you can also pay your loan off faster if your caravan loan allows early payments or extra payments letting you save money in the long run.
Look at the reviews
You can’t really know how good a lender is until you’ve taken out a loan. And by that point it might be too late to switch if you find your lender lacking. You could refinance your caravan loan down the line, but that often takes a lot of work.
To cover all your bases, also research the lender and not just their loan. Look at the lender’s reviews online or testimonials. You could also ask around if you have any friends or relatives who have taken out a loan with certain lenders. Getting their feedback and understanding what a lender's processes are, and the kind of client support they offer is important.
Use a caravan finance broker service
There’s a lot of work that goes into getting a loan but it’s well worth it to get a good deal on your caravan loan. However, doing your research and all the legwork that goes with loan searching can take time and serious effort. If you want to find a good caravan loan but simply don’t have the time, you can apply for finance through a broker service like Aussie Leisure Loans.
With a good and experienced broker, you’ll have access to an expansive network of trusted lenders. Instead of researching and shopping around yourself, you’ll have an expert finance broker on your side to handle all the work for you.
Find the perfect caravan loan with Aussie Leisure Loans
Need a caravan loan? Get in touch with Aussie Leisure Loans today! Our expert brokers can help you find a finance solution that’s tailored to your needs. Just tell us what kind of caravan finance you’re looking for and we’ll handle the rest!
Learn more about our caravan loans by calling 1300 889 669. Or you can get a quick quote online!
