Caravan Loan Interest Rates

Rates are based on two things; firstly, you, secondly the caravan. Let me explain further.

One thing you should know first. Caravan interest rates are risk based, meaning the greater the risk to the finance company, the more you pay, conversely, the less risk to the finance company, the less you pay.

Let’s examine YOU.

A financier lending money wants to ensure firstly that you are able to repay the loan without any trouble. Therefore they have a responsibility to ensure that you have the “capacity to repay”. Basically this means at the end of each month without the loan, you have surplus money. If you dont, or its very limited, you will not be granted a loan.

Financiers also love to see stability in your life as people who move around less (in jobs and residences) are statically more like not to default on a loan

Someone who is a homeowner may get a lower rate than someone who is renting.

In summary, the more financially sound and stable you are, the lower the interest rate you should pay.

Let’s examine the caravan.

Again this is risk based, as older caravans are more likely to need repairs than new caravans. Secondly, if you are buying privately you do not have any chance of recourse meaning you are purchasing on an “as is” basis and if something goes wrong, its up to you to repair it. Conversely when you purchase from a registered caravan dealer if something goes wrong within a reasonable amount of time, more often than not they will fix it. Of course if they didnt and you felt this was unjustly, you could contact your local state based consumer affairs department.

In summary, the newer the caravan is, the less risk it is.

Want to know what the interest rate would be for your particular situation?

Find out by getting a quote by clicking here or alternatively give one of our consultants a call on 1300 889 669.