Vehicle financing is a safe, secure, and viable way to purchase the caravan of your dreams. Before you enter into this type of an agreement, however, it is imperative that you understand the ins and outs of this particular lending process. It varies slightly from the car loaning process, which is why you cannot afford to take a one-size-fits-all approach in this instance.
Do you want to save money on your next caravan loan? If so, be sure to heed the six top tips listed below and put them into practice.
Check your credit score
Before you even think about taking out a caravan loan, you must get to grips with your personal credit score. With this information at hand, you will be much more likely to find a cost-effective caravan lending rate that works for you.
Checking your credit score need not be a long or arduous endeavor. All you need to do is request a written copy of your latest report from a leading Credit Reference Agency (CRA). Alternatively, if you want to speed up the process of gaining entry to your personal credit platform, you could make use of a 30-day free Credit Expert trial service. After you have created an account and submitted the relevant information to your CE service of choice, you will be granted instant access to your score. You will then be able to spot inaccuracies with regard to your spending and loan repayment habits, which in turn will allow you to fix potential issues before they impact your caravan financing application.
Shorten your repayment term
The shorter your loan repayment term, the more money you will save in the long run. Yes, you will have to pay back higher monthly amounts on your caravan… but you will also be sure to avoid being crippled by exterminating interest rates. This will help you save money that you do not necessarily have to spend, which will allow you to spend more money on modifying and improving your holiday home in the future.
Here are a few of the other benefits that you will no doubt reap when you opt to shorten your caravan loan repayment term:
1. Enhanced predictability about your repayment schedule
2. No need to use your belongings and/or property as long-term collateral
3. The capacity to build more equity and attain ownership of your caravan over a shorter period
Make a down payment
If you can afford to do so at the time, you should definitely consider making a down payment when you take out your caravan loan. By putting down as little as 20% of the overall cost of your holiday home, you will strengthen your position as the vehicle owner. Not only will this help you to avoid paying more money than the caravan is actually worth in the long run, but it will also aid you in your bid to sell the holiday home at a later date.
Cover the extra expenses yourself
As well as making a down payment on the caravan, you should also seek to cover the extra expenses attached to it. If you allow your finance provider to cover miscellaneous expenses such as sales tax, registration, documentation, and warranty extension, you could end up increasing the amount of your loan for no particular reason. For this reason, you should resolve to cover your extra caravan expenses with the money you have at hand.
Get quotes from reputable sources
Your dream of financing a quality caravan could quickly turn into a nightmare if you fail to get quotes from reputable sources. The lender that you align yourself with will either help you to find a great deal, or they will hinder you in your quest to save money on your loan.
There are a whole host of trustworthy caravan loan companies out there on today’s market, Auto Finance Online being one of the very best. With this vehicle finance company at your side, you will have the capacity to compare quotes in both a cost- and time-effective fashion. The best thing of all? The quotes that you receive from AFO will not impact your credit score, which in turn means that you will be able to explore your financing options safely and securely.
Know your holiday park rights
When you attempt to pitch your caravan up in a holiday park for the first time, the owners of the premises could very well attempt to pull the wool over your eyes about certain expenses. If you want to avoid spending an unnecessarily large amount of money on your holiday home’s temporary accommodation, you must know your rights.
Here are just a few of the trading standards principles that holiday parks must adhere to:
1. They must not levy expensive penalties when contracts are canceled
2. They must not withhold information regarding money that is owed both now and, in the future,
3. They must not move your caravan or your pitch without your permission for no valid reason
4. They must not make significant changes to your obligations without first getting in touch with you
5. They must not enter your caravan without your prior approval, and they must certainly not sell your property/belongings to recover any money that you may owe them
Should you ever believe that your holiday park provider is acting in an unfair or, more importantly, unlawful manner, it is imperative that you get in touch with your financier right away. So long as you took out your loan with a reputable company, this lender will help you to draw up a fully regulated hire purchase agreement. If you want to invest in a holiday home but cannot afford to make this purchase upfront, you should seriously consider taking the vehicle financing route. When you do decide to take out a loan on your caravan, be sure to save yourself some money by putting the advice laid out above into practice.