Buying Static Caravans
The Process
For many of us owning a Static Caravan offers the dream of owning a real ‘home from home’, allowing you to enjoy fantastic holidays with family and friends for many years to come.
However, looking for your Static Caravan can be a complicated and daunting task.
To give you a helping hand, we have complied this ‘buyer’s guide’, with the help of leading UK Park Operators and feedback from existing owners, to assist you with the process.
A Static Caravan holiday home is a major investment and we urge you to complete as much research as you can prior to purchasing.
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Stages in Buying Static Caravans
FAQ's
Questions to ask before you buy...
Lifestyle
Purchasing a Static Caravan holiday home is a long term lifestyle investment rather than a financial venture from which you would wish to make a return on money. Countless people find Static Caravan ownership offers a lifetime of family holidays and numerous fond memories. To subsidise the cost of ownership, some consider sub-letting their Static Caravan when they are not using it.
Park Location
Your park location will be crucial to the long term enjoyment of your Static Caravan and needs careful consideration.
It is important to remember that many owners take a large number of short weekend breaks. For this purpose, traveling time will become more important than if you were taking an annual 2 week holiday. Many customers have told us that 2 hours driving is the maximum they would consider for taking short breaks.
Lots of owners also ‘lend’ their holiday home to friends and family members, so, assess whether this may need to influence your choice of location.
You may also wish to think carefully about what the region at large has to offer for your extended visits, such as visitor attractions and outdoor activities.
Consider:
• Traveling time
• Length of visits
• Location to friends and family
• Choice of local attractions.
Links:
Choosing the location.
The Park
Once you have decided on your location, you need to find the right holiday park for you.
The very best way to experience a park is to take a holiday, short break or day’s sales visit. This will give you a real feel for the park and you will benefit from the sales team being able to show you available plots and the different specifications and layouts of Static Caravans. Many parks will now refund the cost of your holiday should you purchase a Static Caravan holiday home.
Holiday parks are generally designed to meet the needs of a certain profile of customer. Thus some parks will tailored to meet the needs of families with young children, with excellent facilities including the all important pool, whilst others have a quieter, more relaxed feel that appeals to a very different buyer.
Remember to check how long your park is open for throughout the year as many parks operate a ‘closed season’. A park that closes over the winter may not be a negative thing as it gives the park owner a chance to make improvements and repairs and also discourages the ‘residential’ purchaser. The last thing you want on your holiday park is someone repairing their car next door to you!
Also, check how long you can site your Static Caravan on the holiday park before it requires replacement or removal, this should be outlined clearly in your contract with the Park Operator. Some agreements will allow you to keep your caravan on the park indefinitely, provided that you pay the appropriate fees and keep your caravan in good condition.
Owners association can also be an excellent source of information to a potential buyer, so check if your intended park has one.
Consider:
• Getting to know the park
• Whether park is right for you
• What facilities are on offer
• Owner events
• How long is your holiday park open throughout the season
• How long you can site your Static Caravan.
Running Costs
As with any major purchase, you need to consider the price and the ongoing running costs such as:
1. Site Fees – These are annual fees and vary by park and pitch. This is normally the main annual cost and it is worth researching historic price increases so that you can budget for these in the future.
2. Gas – This is normally purchased by the bottle.
3. Electricity
4. Insurance – You will need to insure the value of your Static Caravan holiday home and its contents. Prices can now be found easily on the internet.
5. General Maintenance - Modern Static Caravans are extremely well constructed and require little or no external maintenance - the external aluminum skin is extremely durable. Manufacturer warranties can be extended but remember, do not cover damage from wear and tear.
6. Remember to include cost of any finance arrangements.
Renting / Subletting
Many people choose to subsidise the cost of ownership by subletting their Static Caravan holiday home. This can help towards the annual fees and other running costs. Often parks will offer rental services that include booking and maintenance (i.e. cleaning) arrangements for a commission percentage. Remember if you let your Static Caravan, you will compromise the time you and your family have to use it, so think clearly about your priorities. You may also find wear and tear increases should you rent your Static Caravan as visitors outside of your friends and family may not treat it with the same respect.
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Joint Ownership
Many people find joint ownership via a syndicate is a fantastic way of purchasing a Static Caravan holiday home with friends and family. This option allows buyers to share running costs and dramatically reduce their initial purchase price.
From feedback we have received it is crucial however that all parties are clear of their commitments and responsibilities in such an arrangement.
You will need to consider:
• How will you ‘rota’ usage
• What is the policy on ‘letting’ to other friends
• Are all parties aware of all costs involved
• Are all parties in a similar financial position
• Do you agree on the rental strategy?
• What happens if there is a disagreement
• What happens if someone wishes to leave the partnership?
Many such relationships end in failure because parties have not considered fully their commitments and responsibilities.
We strongly recommend that all joint ownership relationships are formalised with a document compiled by a legal professional.
Depreciation Sited Static Caravans are very susceptible to depreciation in the early years of ownership as a Static Caravan is effectively sold as a package with your choice of pitch. Generally holiday parks will only offer you the ‘trade value’ for your Static Caravan should you wish to sell. This offer will be based on the value of the Static Caravan only. Should you sell privately most holiday park agreements will have restrictions and require a commission to be paid to the park owner.
For this reason we recommend that potential buyers fully research their purchase to ensure they are making the right long term decision.
New vs Used
The majority of holiday parks offer a selection of used (or pre-loved) Static Caravans. These Caravans offer a lower entry level price than a new Static Caravan.
You need to consider that they will offer a reduced lifespan and that older Static Caravans may generate less rental income.
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Used Static Caravans
The Static Caravan
There is a wide choice of Static Caravans available from basic models through to a very high specification luxury example.
Generally this choice will depend on your budget and personal tastes.
If you intend to spend extended periods at your Static Caravan the specification of kitchen and bathroom facilities normally become a priority.
When buying a new Static Caravan you need to be aware there may be a substantial waiting time for delivery if it is manufactured to order.
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Finance
Many buyers choose to finance their Static Caravan holiday home and most parks offer finance arrangements at preferential rates. As with any credit arrangements it is always worth shopping around for the best deal. Finance packages offered by park operators usually use the caravan as collateral rather than using your home as security * check your loan agreement.
Liinks:
Static Caravan Finance
Location on Park
Finally you will need to consider the location of your Static Caravan on the selected holiday park. Although this is the last stage of the process you still need to research fully.
Consider:
• What pitches are available
• Annual ‘Site Fee’ costs (these often vary depending on position)
• Proximity to amenities
• Potential noise levels
• Quality of view.
Remember – always view your plot prior to purchase.
Existing Owner Feedback
There is no better way to research Static Caravan ownership than to learn from those who have already bought. To help, we have set up an ‘owner’s feedback’ section on our website that is full of useful tips and information.
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User reviews
Purchase & License Agreements
When completing your sale you will be required to sign a purchase / license agreement that formalises your contract with the holiday park owner. It is very important that you read and understand all terms and conditions. As with many consumer contracts a lot of people are put off by small print and simply do not read before signing but it is vital that you understand your responsibilities and those of the park owner.
It is crucial that you read and understand this agreement before signing as it outlines the responsibilities of all parties.
Such agreement contain valuable information on issues you may not have considered such as;
How long can you can you leave Static Caravans on the site
What happens if you sell the caravan or end agreement early
What are fees and what is the policy for price increases
Many customers also seek professional legal advice to highlight any areas of concern or unfair terms that you may have missed with in the contract.
Look out for parks that are members of the main industry trade bodies 1. British Holiday Home and Home Parks Association (BHHPA) & 2. National Caravan Council (NNC).
Parks that are members of these bodies should display the information clearly and are encouraged to abide by a voluntary code of conduct to ensure fair terms for buyers in purchase / license agreements.
For more information on purchase / license agreements see;
Advice from the Office of Fair Trading
Advice from British Holiday & Home Parks Association & National Caravan Council
*Any information on this site is for general information purposes only. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
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Terms and Conditions
© Copyright 2005 My Holiday Caravan
Choosing a static caravan.
Used Static Caravans - Valuations
Rental Income Article