Caravan Finance – A Guide
Owning a caravan is a wonderful way of discovering the country (and world) or of simply escaping to your favourite location. If you’re planning to buy a static or tourer, before you leap into examining the caravan finance deals, consider these points:
1. Can you afford your caravan loan?
An obvious question perhaps, but you need to know that when you buy a caravan on finance, you’ll be able to make all the repayments. That means more than being able to afford your caravan loan repayments now – it means being able to afford them for the duration of the loan.
One thing that helps to take the pressure off is the fact that caravans traditionally hold their value well and depreciate more slowly than your average car might.
So if you do hit a financial bump in the road, you may still find the value of your vehicle is enough to cover most if not all of the outstanding caravan loan.
2. Is caravan financing the right choice for you?
You know the returns you’re getting on your savings. So whilst considering caravan finance quotes, also consider the other potential ways of paying for or contributing to the cost.
If you have a lump sum that would cover the cost of the vehicle in its entirety, you could avoid any interest payments you’ll naturally incur with a loan.
And if the pot won’t stretch to the full cost of a caravan, bear in mind that a lump sum could help reduce the size of the caravan loan you need, or enable you to fund a better, bigger or newer model.
If you don’t have anything to put down, don’t worry. Talk to us about touring and static caravan finance with no deposit.
3. How do interest rates affect caravan loans?
Interest rates will influence the monthly repayment for your touring caravan finance or static caravan loan. The interest rate you pay on your loan will depend on the amount you’re borrowing, the length of the loan and your credit history, but with our lowest interest rates starting at just 5.9% you’ll always find a great deal with us.
Interest rates for caravan finance in the UK have been at historically low levels for some years now. To avoid your repayments increasing, make sure the interest rate on any finance for a caravan is fixed.
4. How does your credit score affect finance for caravans?
You don’t have to have a perfect credit score to be able to get loans for caravans at competitive rates. Every day, we help lots of people, including people wanting caravan finance with poor credit histories, access great loan deals. Yet taking time to improve your credit score in the months leading up to your application for caravan finance online can pay big dividends.
If you can, follow these steps:
- Pay down credit card debts so balances are low
- Don’t take out any new credit agreements before you take out a new caravan loan
- Continue to make any existing, regular loan and credit card repayments on time
Improving your credit score, even by just a few points – and even if you’re looking for caravan finance with bad credit – could help you secure the loan, secure a bigger caravan loan, or help you access a lower interest rate.
5. Getting tourer caravan finance with bad credit
If you have a bad credit score you’ll typically find it harder to gain credit, or to get caravan loans at the lowest interest rates. But that doesn’t mean you won’t be able to get caravan finance at all. And it doesn’t mean you won’t be able to buy a caravan on finance at an affordable rate.
Auto Finance Online agrees 90% of the loan applications that come our way, and many of those are for touring caravan finance with bad credit histories.
If you have a bad credit record but still want to enjoy the freedom of caravanning, talk to us.
6. Which caravan?
Now’s the fun part. With finance for your used caravan or static caravan agreed, you can concentrate on choosing the right model for you and your budget. If you’re struggling to find the right model let us know and we can help find you the perfect one.
Once you’ve agreed your caravan loan with us you’re free to buy from any reputable dealer.
Start your journey here. Call us now on 01625 460454.