Caravan loan repayments – can I afford them?
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 – and often all – of the outstanding loan.
Is caravan financing right for me?
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.
- 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.
- And if you don’t have anything to put down, don’t worry. Talk to us about touring caravan finance with no deposit.
Am I eligible for a caravan loan?
Making a successful application for finance really comes down to satisfying the credit provider that you can afford it. That decision will be based on a number of factors, including:
- Age: You’ll need to be between 18 and 85 years old at the start of the agreement
- Driving licence: It helps to have one (even if it’s just a provisional licence). It is possible to get finance without a licence, though
- Employment and income: You don’t have to be in full time employment or self-employment to be able to get finance. Lots of our customers are retired. But you will need to demonstrate your ability to repay the loan and, especially for larger advances, that may include adding a joint hirer or guarantor.
How do interest rates affect caravan loans?
Interest rates will influence the monthly repayment for your touring caravan finance or 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 your tourer is fixed.
How does my credit score affect finance for caravans?
You don’t have to have a perfect credit score to be able to get a loan at a competitive rate. Every day, we help lots of people, including people wanting caravan finance with poor credit histories, access great 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 larger loan, or help you access a lower interest rate.
Can I get tourer caravan finance with bad credit?
If you have a bad credit score you’ll typically find it harder to gain credit, or to find caravan loans at the lowest interest rates. But that doesn’t mean you won’t be able to get finance at all. And it doesn’t mean you won’t be able to buy a tourer 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 poor credit record but still want to enjoy the freedom of caravanning, talk to us.
Can you guarantee my caravan loan application?
You might have come across offers of “guaranteed caravan finance” and these can look particularly tempting if you’ve got a bad credit history. But the reality is no finance company will guarantee anything without looking at your application. You’ll still have to go through the same decision process. The only likely difference will be the inflated interest you pay if your application is approved.
It’s far better to work with a broker like Auto Finance Online who can match your application to the right finance provider for you, increasing your chances of acceptance whilst keeping the interest rate as low as possible.
Do I have to pay a deposit for caravan finance?
No. You don’t need a deposit to secure your loan – although if you choose to pay one you could reduce the term or duration of the finance agreement. The caravan dealer, however, may ask for a deposit to secure your chosen vehicle and remove it from sale.
This is standard practice, because there’s typically plenty of preparation to be done in making a show caravan ready for a new owner. Fortunately, when you choose finance with us, we can transfer funds to the dealer same day, so there’s no need to worry about finding the money.
Can I get a loan to buy a caravan from a private seller?
Yes. If you’ve been searching for finance to buy from a private seller you’ll know such loans can be hard to come by. But at Auto Finance Online we’ll be able to connect you with lenders who finance private sales all the time.
If you’ve spotted the perfect tourer for sale privately, use the calculator to check your approximate monthly payments, then call us on 01625 460454.
Which caravan should I buy?
Now’s the fun part. With finance agreed, you can concentrate on choosing the right model for you and your budget. The choice is huge, though, and it’s very easy to be so swept away by the features and stylish interiors that you forget a few fundamentals.
So before you start your search, make a list of the essential features that will ensure the caravan you end up with is the one that’s perfect for you. Consider the following:
- Berths: Naturally you’ll need a caravan with room to fit everyone in but do make sure you stretch out on the beds to make sure they are long enough.
- Size: Legally, any car can tow a caravan 7m long and 2.55m wide, but don’t feel obliged to opt for the biggest caravan on the forecourt. If you haven’t towed a caravan before you might want to start small.
- Axles: Usually linked to the size of caravan, a single axle (i.e. a single set of wheels across the centre of the van) makes the van easier to manoeuvre and indicates a lighter vehicle. A double-axled caravan (i.e. with a wheel at each corner) gives added stability but is likely to indicate a bigger, heavier caravan.
- Car: Even if you’re an experienced tower, your car will need to be up to the job too. You don’t want to choose your dream caravan only to find that you need a costly car upgrade to pull it. To ensure your car will be able to cope, choose a caravan within the car’s towing limit. You’ll find that in the car’s handbook. Better still, and to guarantee your car will be able to cope with room to spare, divide your car’s kerb weight (also in the handbook) by 100 and multiply by 85. Use the resulting figure as the maximum weight of caravan you can tow.
- Layout: Think about what you’ll be using your caravan for, and what facilities matter most to you to decide on the right caravan layout. Do take your time to explore the options available – you’ll be surprised by the variety!
If you’re struggling to find the right model for you, let us know. We’re always happy and able to help.
Which caravan dealer?
The simple answer is any of them. Once you’ve agreed your caravan loan with us you’re free to buy from any reputable dealer. Of course, this is a major purchase and we want to ensure you make the right choice. That’s why we have a network of trusted dealers throughout the UK, all of whom will offer great quality as well as great prices. Just ask and we’ll point you in the right direction.
How much can I borrow?
Use our caravan loan calculator to explore your options. Set the sliders to the amount you would like to borrow and your preferred length of loan and you’ll receive an approximate monthly payment, together with our best interest rate and the full cost of your loan. There’s no impact on your credit score when you use the calculator.
Then, call us and we’ll refine your search to find low cost caravan finance that’s perfectly matched to you and your circumstances.
Start your journey now. Try the calculator, then call us on 01625 460454.