So you’ve decided to buy a caravan, but don’t have the money to buy it outright; luckily you’ve got several finance options available to you including getting a Driva caravan loan! If you’re planning to take out a loan or credit agreement for your caravan then it’s important that you know the do’s and don’ts, what to watch out for and some useful tips on how to get the best deal.
1. Do stick within your budget
If you want to get a loan for your caravan then there is no point in trying to get a loan for more than you can afford. You need to be realistic about your borrowing power. The last thing you want is to have extra pressure on yourself when it comes to repayments because the interest rates will be much higher if you take out a loan for more than you can afford.
2. Don’t forget about your existing commitments and bills
Before you apply for finance to buy a caravan it’s important that you’re aware of the total amount of money that will be required for all of your essential expenses, such as gas and electric, council tax and any other bills that you might already have.
3. Do your research and shop around
When it comes to finding a good deal and the best caravan loan for you, there is no better way than doing some comparison, otherwise known as ‘shopping around’. This will help you find the cheapest deals on offer and make sure that you get interest rates at the most competitive rates available.
4. Don’t forget the small print!
Before you apply for your caravan loan, make sure that you read all of the small print in the loan agreement so that you are fully aware of what is expected from you and what you can expect from your broker or lender. You don’t want any nasty surprises when the monthly payments come in.
5. Do think about your repayments
Lenders and brokers will vary on how they structure their loans; some offer balloon payments (make one large payment at the end of the loan), others offer interest only or capital and interest repayment, it’s important that you ask plenty of questions so that you can find out exactly how the loan will be structured and make sure you are happy with what is being offered.
6. Don’t forget about any warranties
If your caravan comes with a warranty then it’s vitally important that this isn’t cancelled when you take out finance to buy it. Your lender or broker needs to know about any warranties on your new purchase so that they can ensure you are still covered.
If you stick to these simple tips, then taking out a loan for your caravan should be easy and hassle-free. Just make sure the person you’re dealing with is reputable and has plenty of experience in arranging finance for caravans, otherwise, it could turn into a very costly mistake!
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