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my holiday caravan

Your guide to static caravan ownership

Static Caravan Finance

Many people who buy a static caravan holiday home decide to arrange finance to pay for the purchase. A static holiday caravan is a long term lifestyle investment and as a result it is often preferential to spread the payments over an extended period of time.

We have compiled the following points to consider when arranging finance for you static caravan.

In most circumstances a customer can choose to arrange finance independently or via the caravan sales team. The majority of static caravan holiday home finance arrangements are made via an unsecured loan. Generally the park sales team are focused on selling caravans and it is irrelevant to them where the buyers finance is sourced, as long as it is. Hire purchase schemes are a rarity now and can be complex and confusing to buyers. Most caravan sales teams will have an arrangement with a preferred finance company or bank offering a one product solution to all customers, much in the same way as car dealers operate. This service offers convenience to the customers as all arrangements can be handled via the sales team on site. Some such loan agreements provide additional protection to the lender allowing static caravan to be reposed in the event of non payments.

As with any finance arrangement it is important to find the right deal for you offering the best value for money based on your circumstance, remember you simply need to borrow the money at the very best rate. For many it is simply a case of sourcing the unsecured loan that will offer the lowest APR over the term of the loan. Other options for finance include loans secured on a property or re-mortgages.

Many customers choose to seek advice from an independent financial adviser to check the most economical way to arrange finance for their particular circumstance.

As with any major purchase made on finance you need to ensure that payments are manageable, even if you have a change in circumstance.

When considering finance you need to consider many factors including;

• Do you have a deposit or part exchange static caravan to reduce finance required?
• Should you be using savings rather than finance?
• Consider what period of time you will take finance over and what are the monthly payments?
• How long are you going to keep the static caravan? Remember if you keep the static caravan for a short time you may encounter negative equity.
• Are you going to insure the loan against redundancy or illness and what will that cost?
• Have you calculated all running costs associated with static caravan ownership e.g. site fees / insurance?
• What is the realistic rental income?

Suggestions

• Always shop around for finance
• Check comparison websites online for the best loan
  Get professional financial advice

MCH - 14th April 2008

Articles and Information

Static caravan finance Faqs