Caravans are a popular choice for people looking for an affordable and convenient way to travel. They’re small enough to be towed by most cars, yet spacious enough to accommodate the entire family. Caravan finance takes away some of the stress of buying and owning a caravan, while offering an affordable way to travel.
The first benefit of getting a caravan loan is that it will allow you to purchase the caravan of your choice, rather than having to buy one that is within budget. Borrowing money also means you’ll have more wiggle room with the monthly repayments. Plus, if you’re creative enough you can secure a loan on your house or another asset as security against the loan, which may help you secure a lower interest rate.
Low monthly repayments
Caravan finance usually comes with fairly low monthly repayments, which means you have more freedom to enjoy your caravan instead of worrying about meeting the repayments. And even though the repayments will be lower, you’ll still pay off your loan much sooner than if you’d paid it in full because of the added interest payments. You can also negotiate a longer repayment period to reduce your monthly instalment further.
Borrow 100% of the purchase price
Another advantage of caravan finance is that you will be able to borrow 100% of the purchase price, instead of having to fork out a deposit. This means that you won’t have any money tied up in an asset (such as a house) and can use it for something else, like spending on other things or investing elsewhere. You’ll be able to get a caravan immediately without having to wait until you’ve saved up enough money to buy one outright.
Improve your credit score
If you have a caravan loan and make your repayments consistently in full and on time, this will improve your credit score. This means it will be easier to get loans in the future, including credit cards, personal loans or mortgages. Improved credit can also make getting car insurance, mobile phone plans and utilities easier.
Caravan finance usually allows you to make repayments weekly, fortnightly or monthly. This means you can choose the repayment schedule that best suits your needs. For example, if you’re planning a major holiday or family trip later on in the year, then it’s possible to add more money onto your loan throughout the year and pay it off in one go.
For example, if you’re planning a major holiday or family trip later on in the year, then it’s possible to add more money onto your loan throughout the year and pay it off in one go.
If you’d like to get an idea of how much a caravan loan might cost you, we recommend checking out a caravan finance calculator like this handy one from Driva.