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Caravan & Motorhome Loan Repayments Calculator
January 6, 2021● 5 minute read●
Many Aussies are looking into purchasing a caravan or motorhome that would be perfect for getting away from the city for a few days or for spending your next vacation. After all, who doesn’t love the idea of having a home on the road? Owning your caravan is a unique experience that affords you the luxury of taking the comforts of dwelling on the road with you. If funds are an obstacle to fulfilling this dream, they don’t have to be. Like there are loans for cars and houses, there are also lending options for people who want to purchase a motorhome. Not only that, but there are also online repayment calculators that could assist you in estimating how much you’ll have to pay per month. In this post, we’ll take you through the basics of caravan loans and using a motorhome repayment calculator.
What’s a caravan repayment loan calculator?
A caravan repayment loan calculator is an easy to use online service that gives you the breakdown of how much you have to pay at every installment (usually weekly or monthly) to cover your motorhome loan. It’s ideal for comparing different loan options and planning your finances ahead of time. To use the service, you have to input the right metrics, which include how much you want to borrow, the loan duration, and of course, the PA. It’s also essential that you include any balloon payment in your calculations. When you’ve entered the variables correctly, you’ll be able to see as an estimate of how much the loan will cost you, and make plans to pay back.
How do I know the right interest rate to input?
The best way to look at the interest rate is as a sort of lenders fees for providing you with the funds you need to make a big purchase. Now, what determines how large or small the lender’s charges depend on multiple factors. Commonly, lenders rely on the vehicle you want to purchase, how new it is and personal credit file. It’s much easier for people with a clean credit history to find loans. That’s not to say it’s impossible with a bad credit score, but it is more challenging, and even then the interest rates are more likely to be higher.
Some calculators will leave room for you to enter the interest rate you want, so in that event, you can search for the best caravan finance rates in your vicinity before trying to find an estimate. Other calculators will not because that variable is already programmed, and in such situations, they often display the rate they are using on their website. Often it changes, depending on the latest financial conditions, so don’t worry about using outdated figures. However every lender operates with a different number, so it’s best to reach out to them directly to get the real per cent. Otherwise, it’s advisable to adjust the interest rate, so you have a better idea of what the range is.
What about the other variables?
It’s a good idea to vary the duration of the loan like you would the interest rate. The term for most motorhomes is somewhere between a year to seven years. Having an idea of the amount you have to pay between each timeframe can help you structure your finances better.
You’ll also notice an option to insert balloon payments, and that’s a significant amount of money you have to pay at the end of the loan. When you spread your payments evenly across the duration of the advance, the balloon payment can be zero. In the instance, it is not zero, the lower the residual reimbursement, the higher your monthly repayments will be. However, it’ll also reduce the interest rate per month.
Are there any disclaimers for using a motorhome calculator?
There are a few crucial things you ought to note when using any repayment calculator. Most of them act as a guide only. So using one isn’t the same as making a loan offer. Sometimes these services update their formula for calculating your repayments, so the figures can also vary. With that in mind, it’s best to regard the answers as an estimation of what you’ll have to cough up eventually. If you want a more accurate solution, you should reach out to your financier to arrange a quote, so you know how much you’re paying to the dime.
Of course, the final figure doesn’t include any of the ongoing monthly fees that lenders often have in their loans. So it would be smart for you to make an allowance for that.
How do I find the best caravan & motorhome finance?
Here are a few tips to guide you as you search for the perfect deal for your next, or first, caravan:
Sort out your credit report: Every lender will request for a copy of your bank statement, so it’s a good idea to go through it before handing it over. If there are any errors, make sure you mend them to avoid misunderstandings that risk compromising your offer. You can also attempt to boost your score by paying your debts on time. Some lenders will require your bank statement as well, so prepare to hand it in.
Plan your finances: Your financier often requires that you fill a form with details on the motorhome you wish to purchase because these come in different ranges, you must be aware of your capabilities. Remember that the lender will weigh the offer against your current finances, so it’s vital you do too. Plan how much you can afford to pay monthly, taking into consideration your expenses and your current income.
Get someone to step in: If you’re unfamiliar with the world of caravan loans, it’s not a bad idea to get a third-party to help. It could be in the form of a loan expert who has more background knowledge about the best deals on the market. Or a guarantor who has more buying power than you.
That’s a wrap on caravan & motorhome loan calculator. We’re sure you picked up a few things that’ll make your repayments easier, and your choices smarter.
Written by Jacaranda Team