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Can I buy a new caravan with a caravan loan?

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Are you thinking of applying for a caravan or RV loan, but have no idea if a caravan loan will enable you to purchase a new caravan? If so, you’ve come to the right place! In most cases, the type of caravan you can purchase will depend on your loan type, and the amount of funding you are approved for. Generally, though, you should be able to purchase a new caravan if you have applied for enough to cover the costs.

Read on below to find out more about caravan loans, and applying for funding for a new caravan.

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Can I buy a new caravan with a caravan loan?

Once you have decided to apply for a caravan or RV loan, how much you can borrow is of the utmost importance when it comes to what type of caravan you will be able to afford.

You may find that there are differences when it comes to funding for either a new or used caravan. The interest rate may vary depending on if you are planning to purchase a new or used caravan. Your interest rate could also depend on the age of the caravan you have in mind.

Depending on your loan type and terms, you may be able to purchase a new caravan or RV with your loan. Discussing this with your lender during the application process may be a good idea so that you are aware of what exactly you can do with your loan from the beginning.

How to get a good rate on your caravan loan

The age of the van you are planning to purchase and the total amount of funds being borrowed can affect the rate of your caravan loan. Your financial status and financial history may also affect your loan terms, as might your credit score. If you are concerned about your credit history or credit score, using traditional lenders such as banks might be difficult.

Instead, you might consider using private lenders. In many cases, private lenders have far less strict lending criteria, and often offer bad credit loans, targeted to those with less than perfect credit. These types of loans make it easier for those with bad credit to still get funded easily, and with fair loan terms.

You may find that private funding takes less time to approve, meaning that you can hit the road in your new caravan faster.

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Types of caravan loans

There are many different caravans and RV loans to choose from. Some of these available to you might include:

  • Specialist loans – Specialist loans are loans that are done through a specialist lender who provides finance to those who are self-employed. You may need a specialist due to your credit score, loan purpose, needing a loan after bankruptcy or not meeting the income verification requirements.
  • Secured and unsecured loans – Secured or unsecured caravan loans are a lump sum payment that you repay over an agreed-to period of time. Repayments typically include interest on top of the loan, which is a percentage of the principal sum of the loan. A secured loan is guaranteed by an asset, which in this case would be your caravan. Your lender would use this asset as security, which means that if you cannot make the agreed repayments your lender could take possession of the asset and sell it to cover the cost of the loan.
  • Low doc loans – Low document caravan loans are used when the borrower cannot meet the required number of documents needed for another loan. Low doc loans can be taken out using less documentation than what is required for a full documentation loan. Typically, low doc loans are for potential borrowers who are self-employed or small business owners and don’t have access to the documents required to be approved for a traditional type of loan.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream caravan. The lending criteria from other lenders can be far too strict when you have bad credit.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a bad credit caravan loan.

How we can help

Tiger Finance is here to help you to get your dream caravan regardless of your credit score. We can make the process simple and pain-free. With our quick application process, we can have you approved on the same day that you apply if you’re able to meet our criteria. Our loan specialists will make the entire process stress-free.

If you’re ready for an adventure in your new caravan, call us today for your free initial consultation with one of our loan specialists.

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