Taking a road or camping trip can be exhilarating and fulfilling. It can also be quite expensive. Consider the cost of transportation, cost of feeding and lodging, and other miscellaneous expenses. If you’re someone who takes or would like to take regular trips like this, then you would most likely be incurring a hefty cost. Why not invest in a caravan instead? It’s yours anytime you want to take that road or camping trip you’ve always wanted to take, and the only recurring cost would be for servicing and maintenance. This is a better financial alternative to staying in hotels. Your caravan not only offers you the comfort you’d be enjoying if you were in your own home, but it also helps you save costs. It affords you the freedom to go wherever you want to go, whenever you want. Your caravan can be your go-to moveable home when you need an escape or a break from the real world. There are numerous reasons you need a caravan, and if your reason for not owning one yet is a financial constraint, then that problem is about to be solved.
What is Caravan Finance?
Caravan finance is a service provided by caravan financial brokers or institutions. It is simply an agreement between you and the financial broker of your choice. This agreement provides you with the total or partial amount of money you need to buy the caravan of your choice. The agreed amount is loaned to you and based on the agreement between you and your caravan financial broker, you determine how and when you want to repay the loan. Caravan financing usually has an interest rate applied to it. You have to be mindful of the financial brokers you opt for because you don’t want to end up paying an interest rate that would be even higher than the loan amount itself. Some brokers attach high-interest rates to their loans and buying that caravan eventually becomes more of a liability than an asset. So go for caravan finance with a friendly interest rate.
The interest rate is an important aspect of a caravan financial agreement. Taking a loan with a very high-interest rate is never worth it because you might even end up paying more than you bargained for. There are many caravan financial brokers, and you have the option of choosing those with the most reasonable interest rates. Apart from credibility, the interest rate is something you have to watch out for when you want to take a caravan financing loan. This is where a caravan finance calculator comes in.
What is a Caravan Finance Calculator?
A caravan finance calculator helps you calculate the total amount you would be paying your caravan finance brokers. The total amount includes the loan itself, the interest rate, and other costs that might come up later. Using this calculator lets you determine if taking the loan would be worth it or not. Some caravan financial brokers project their interest rates and loan repayment plans in such a way that makes it seem it would be a walk in the park. Most times, it’s not. You find yourself wondering why and regretting taking that step. This is why a caravan finance calculator exists. It helps you go into whatever financing you decide on with your eyes open. You know what to expect and if you’re ready for it financially or not.
This is something you and the broker of your choice agree on. You both determine what payment period plan would be most convenient for you.As far as payment periods are concerned, most loans are long-term or short term. A short-term loan usually spans from a month to two years while long-term loans span from two to five years. The longer it takes for you to pay up your loan, the more money accrues because of the interest.
Once again, you and your financial broker have to decide on a payment method. The payment can be done installmentally. You can choose to pay yearly if it is a long-term loan, monthly and even fortnightly. You can choose the most convenient payment method. However, the longer it takes to repay your loan, the more you would have to pay.
A method that is commonly used to repay a loan is ballon payment. Ballon payment comes in form of an agreement between you and your broker where you choose to pay a certain amount of the loan at a particular time. It saves you the amount you pay at intervals by accumulating it and paying it at or towards the end of your loan period. Ballon payment is usually a major part of the loan. People opt for this method because it can be carried out at once.
Requirements for Caravan Financing
Caravan financing is an easy step to take. However, you must meet up some requirements which may vary from one broker to another. Some requirements are universal and they include personal information such as your name and where you’re from, your employment status or source of income, residential address, credit score, and list of assets. These credentials help your broker determine if you would be qualified for caravan financing or not. Having a bad credit score does not disqualify you from getting caravan financing aid.
Secured and Unsecured Caravan Finance
When you’re considering taking a loan to purchase a caravan, you are presented with two options. You can decide to opt for secured or unsecured caravan financing. Secured caravan finance requires an asset that can be used for collateral. It has to be a valuable asset. Unsecured caravan finance requires no assets for collateral.
At Empire Times Caravans & Motorhomes, we do not offer caravan financing services. We however have existing third-party relationships with credible caravan brokers in Australia. Contact us today for firsthand information about the best caravan finance brokersinAustralia.