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!
Ahead in your mortgage with an offset account?
Don't have an offset account at the moment.
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.
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
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.
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.
stuffing around of setting it up
This is all part of the camping experience!
camping is so yesterday, the new trend is glambing :-)
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"
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.
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.