Generally, you can finance both old and new caravans. The only difference is that financing a new caravan comes with a higher likelihood of success than financing a used option. This is because when it comes to used options, the lender will have to assess the caravan to ensure that the age of the caravan can still provide value.

When it comes to a secured loan, you provide an asset as security for the loan arrangement. Usually, you can use the caravan you intend to purchase to secure the loan. Generally, this option comes with a lower interest rate, a longer duration, and a higher loan amount.

On the other hand, under the unsecured option, you don’t need to provide any asset as security for the loan agreement. In turn, thanks to the increased risk that the lender bears, you’ll need to pay a higher interest rate.

Applying for a caravan loan has been made easy over the years. You can apply online easily, or you can opt to apply through the phone. You’ll then need to provide relevant documentation regarding your identity, employment status and source of income, residential details, credit status, other ongoing liability, the caravan you want to purchase, and your assets. Once you provide these relevant details and authorise the finance brokers, they get you a loan deal that meets your needs.

You can get a loan term between two and seven years. However, it will depend on a wide range of factors, such as the type of loan you’re opting for and the loan duration. Getting a new caravan will allow you to access a longer loan duration than getting a used caravan.

However, keep in mind that each lender determines this. They assess applicants and determine the appropriate loan term. You can still discuss with your broker and lender to intimate them with your preferred loan term.

Generally, lenders and banks describe the interest associated with caravan finance on their site. Note that this varies over time, depending on the terms obtainable in the industry. However, this rate is only a guide that allows you to know your likely obligation. Usually, the eventual interest rate you get will depend on your credit status, the type of loan you opt for, and other details of your application. So, in some cases, the rates might end up being the same, and in some other cases, the rate might end up being higher.

In case you have any other questions, you can approach your finance broker to get more clarity. They’ll be sure to answer your questions and explain all that you need to know about getting caravan finance.