Caravans are costly but worthy investments. They have many uses, beyond travelling and camping trips. They can be used for storage and quick getaways from your everyday life. Some people even live in their caravans. Some use them for commercial purposes. Whatever you do, ensure that you have insurance that covers your caravan to mitigate losses and give you peace of mind.
At Free Vehicle, we understand that caravans are very expensive but luxurious vehicles. We also understand that people want them but find it a bit hard to afford them. We do not offer caravan financing services, but we have unique, trusted and credible third-party relationships with brokers who do. You can contact us for referrals to brokers who provide excellent and affordable caravan financing services.
Caravan Finance Simplified
Caravan finance is a financial agreement between you and a financial institution or broker, where the sum of money required for you to buy the caravan of your dreams is provided to you based on a signed agreement with some stated conditions. There could be an agreement for a monthly installation payment; it could be yearly or even quarterly. Interest is, however, attached to it. You have to pay an interest rate annually, and the interest rate is calculated on the outstanding balance of your debt.
Some caravan financing institutions require you to take caravan insurance to insure you against losses or damages that might arise as a result of unforeseen circumstances. This is a sure way to secure investments on both sides.
Requirements for Caravan Financing
Because a lot of people are shady and constantly think up ways to scam others of their hard-earned money, financial institutions or brokers have a series of requirements you have to meet before you can get a caravan financing deal. You will need to provide information on yourself, your employment status or source of income, where you live, your credit status, information on any loans you’re currently servicing, the caravan you’re interested in, and a comprehensive list of your assets. Once you’re deemed legible for a loan, then an agreement that benefits both sides is drawn up. Caravan financing applications can be carried out online or through a phone call to financial institutions or brokers. You can also go to their office to apply directly. Whatever way you choose is effective, and if you qualify for caravan financing, it’ll be granted to you.
Unsecured Caravan Finance
This is a caravan financing option where you do not have to provide collateral or an asset to deem you worthy of a loan. You simply provide information about yourself, such as your name, source of income, residential address, and credit status. Once these requirements are met, your caravan financing agreement is drawn up, and you are given access to the loan.
Secured Caravan Finance
This caravan financing option requires more than documented information about yourself. Beyond providing your name, source of income, residential address, and assets, you have to provide a worthy asset or an item for collateral. This is a way of securing the loan. Most people opt to use the caravan itself to secure the agreement.
What are the types of caravans you can get Caravan Financing for?
You can get caravan financing for any brand of caravans, ranging from Avida to Crusaders, JB, Roma, Lotus, Supreme, Travellers, to Universal Caravans. You can get the caravan of your dreams brand new or second-hand. If you want to get a second-hand caravan, you will have to carefully scrutinise it and make it go through a series of tests to ensure that it is still in good condition. This is an essential requirement from your caravan financing broker. They pay serious attention to it because they do not want bad investments. They want caravans that will eventually pay for themselves through your satisfaction and safety.
If you want to opt for a second-hand caravan, ensure it goes through adequate testing from reliable mechanics. This is for both your safety and to avoid a bad but expensive investment.
Frequently Asked Questions about Caravan Financing
Is there anything like Guaranteed Caravan Finance?
The short answer is no. It is illegal for financial brokers to even say it is guaranteed. This is because you have to pass some requirements such as information about yourself, your occupation or source of income, your assets, and your credit score to get a caravan financing loan. Having a bad credit score might make it but hard for you to get caravan financing, but it is still possible. Be wary of caravan financing brokers who say securing a caravan financing agreement is guaranteed.
Can I get caravan finance without undergoing a credit check?
The answer is also no. This is beneficial not only to your financial broker but also to you. Skipping a credit check leaves you ignorant of whether or not you can comfortably afford to take that loan. If you have a bad credit score, it is advisable for you to not take that loan. Don’t take a loan without a credit check.
What is a Caravan Finance Calculator?
This is a tool that helps you calculate how much you need to repay when you take a caravan financing loan. Using the calculator well enables you to determine if the loan is worth taking or not, in that will you be able to afford to pay it up in the long run? It takes into consideration the loan amount, the loan term, the interest rate, and the method of repayment. The loan amount is the amount of money you’ll get from the caravan financing broker, and you can decide to borrow half, quarter, or all of it. It depends on your finances. Take into consideration the interest rate. Is it something you can afford? Will it be worth it in the long run? A lot of people avoid loans because of the heavy interest rates. The loan term is the period the loan has to be related.