HOME

Caravan loans: How to secure the best possible loan rate

Are you excited by the prospect of traveling by caravan? If you’re sold on the idea of purchasing your very own caravan, continue reading to discover how to secure the best possible rate on the RV of your dreams. There are some little known tricks to this process, which can differ from the new car finance process. After all, the quicker you can pay off your loan with a dealer like camper trailers queensland, the sooner you’ll own your RV out right.

Consider the various types of loans which are available

There are various types of loans available, each of which offers distinct advantages and disadvantages. The key, is to choose the loan which best fits your individual situation. As an example, you may be interested in a secured caravan loan, where the finance company you sign a contract with purchases your desired caravan on your behalf. Should you choose this option, you’ll pay your finance company a fixed term monthly lease at the end of which you’ll have the opportunity to pay the residual amount on the lease and take ownership of the caravan, sell the caravan or resign a lease on your caravan.

Request online quotes from multiple lenders

If you’re looking to secure the best possible loan rate, seriously consider requesting quotes from at least five different finance companies as if you only approach a single lender, you won’t know whether you’re being ripped or being offered a fair, competitive loan rate. Thankfully, requesting loan quotes is a painless, quick process as most companies allow customers to request online quotes. Typically all you have to do is enter the vehicle make of the caravan you’d like to purchase, it’s model number, the year it was manufactured and the total amount you’d like to borrow and a loan specialist should be able to provide you with a quote within minutes. Alternatively, most companies also offer a telephone number, should you wish to negotiate directly with a loan specialist.

rv life

Use a loan repayment calculator

A variety of websites offer free online loan repayment calculators which will allow you to calculate how long it will take you to pay off your caravan parts at different interest rates. All you have to do is enter the total amount of your desired loan, the interest rate a finance company have offered you and your desired loan term and you’ll be shown the amount which you’ll be required to pay every week, month or year, in order to clear your debt. Generally the shorter your loan term is and the faster you’re able to pay your loan off, the smaller the amount of interest you’ll be made to pay. However, if you can only afford to make small repayments, you may be better off paying your loan off over a longer loan term. By adjusting your loan term, amount and interest rate, you’ll be able to find a loan rate which you’re comfortable with.

So what are you waiting for? The sooner you sign a loan, in order to purchase the caravan of your dreams, the sooner you’ll be on the road discovering new cities and picturesque towns. Just remember to request multiple quotes from a variety of finance companies and to use a loan repayment calculator before signing a contract.