Caravan Finance - Recommendations on Finance Providers?

Hi all,

Looking to buy a caravan with a rough budget of up to $60k (ideally less, but that's another topic).

Does the OzB community have recommendations on finance providers? Who have you used? Who do you currently use? I really don't want an unsecured loan because they have high-interest rates. I would prefer secured.

We own our home (through a mortgage).

Thanks!

Comments

  • +1

    Ahead in your mortgage with an offset account?
    Use those redraw funds and ensure you make additional payments back as if you were paying off a seperate loan.

  • Ahead in your mortgage with an offset account?

    Don't have an offset account at the moment.

    • +1

      Refinance, take out equity.

      • Look at this option as well.

  • The idea that unsecured loan rates are higher has to be weighed against that with adding it to your home loan you are paying it back over a much longer period. This can increase the total interest on your loan.

    • +1

      you are paying it back over a much longer period.

      Only if you don't have the self awareness to make additional payments, as if you had a seperate additional loan.

      • Yes, just flagging that… Cheers. :+)

    • only if you let it drag out pay the same amount you would over personal loan
      say it cost you 8%-9% personal loan and the paid back is 5 years at XXX amount
      pay extra the same amount into your home loan and save yourself half of the interest

  • +1

    Obviously I don’t know your financial situation, but if I were you I would think very carefully before borrowing money (with interest) to pay for a depreciating asset. I love going camping and I appreciate the desire to buy now and make most of your time rather than saving up to pay for one that you can buy outright. At the same time, I think you can get almost the same level of enjoyment with a camper trailer (we have a jayco wind-up) or even a decent tent setup for a fraction of the cost.

    • +2

      But that don't impress anyone like an air-conditioned caravan with satellite tv.

    • If we are going to do it, might as well do it right.

      Some of our family had a camper trailer and it was a nightmare with the stuffing around of setting it up plus the extra stuff you had to carry and then onselling it.

      • +1

        stuffing around of setting it up

        This is all part of the camping experience!

        • camping is so yesterday, the new trend is glambing :-)

  • +3

    I know you didn't ask, but I would recommend renting one to start with (similar to what you are looking at buying), to ensure the caravan life is for you.

    • Great suggestion. Also to ensure that the one you’re looking at buying suits your needs! OP may realise it’s too small or big.

      • Or too much effort. The waste don't magically disappear in the dunny

        • Depends on caravan type too, can always go toiletless and use caravan parks with bathroom facilities.

  • The only thing that loses value faster than a caravan is probably a boat. Dont borrow money on a depreciating asset, especially an asset that will basically free fall in value as soon as you hook your car up to it to tow it off the lot.

    • I only know in detail 2 people that bought and sold a caravan, one about 6 years ago, the other in the last few years. Former had it for a couple of years, got back every penny, the latter had it for a couple of years too, made a profit.

      • Current climate isn't exactly "normal" for used vehicle or caravan sales.
        It's a prime example of past performance is no guarantee of future performance

        • 6 years ago was pretty "normal"

          • @fantombloo: not normal when they bought it during normal time and sold it during covid time.

    • If you buy brand new, sure. If you buy second hand boats definitely tend to retain value. I’ve known a few people to resell second hand boats for either the same or a little more than they paid.

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