When planning their caravan purchase, most people focus on the sticker price. But there’s another number than can have just as big an impact on your budget: the interest rate.
Whether you’re buying new or used, from a dealership or a private sale, the interest rate will be key in how much you’ll repay over time. To help you plan well and shop with confidence, Loans Unlimited have designed a loan calculator for caravans, allowing you to estimate repayments and compare different scenarios.
In this post, we’ll unpack how interest rates actually work and how the calculator can help you keep costs in check. If you’ve already used the calculator and would like to begin the application process, click ‘Apply Now’ or contact our crew.
An interest rate is the cost of borrowing money expressed as a percentage. It’s added to your loan repayments over the life of the loan.
For example, if you borrow $40,000 at an annual interest rate of 5%, you’ll pay more than $40,000 back. Every year, 5% of the remaining balance will be added to the total. Think of the extra amount as the lender’s fee for lending you the funds.
Interest rates can vary based on:
Your credit history
The loan amount and term
The type of caravan you’re buying
Whether the loan is secured or unsecured
The lender’s own policies and risk assessment
Even a small change can in interest can impact your repayments and total loan cost. To make sure you find the rate that’s right for you, do your research, speak with our crew and utilise the Loans Unlimited caravan finance calculator.
Different lenders offer two kinds of interest rates: fixed and variable.
Fixed rates are locked in for the duration of your loan, giving you predictable repayments and protection from rate rises. Variable rates can fluctuate based on market conditions, but often start lower. This can work in your favour if rates drop, but can also push repayments higher down the track.
The Loans Unlimited crew will help you weigh up both options and make a decision suited to your budget, risk appetite and financial goals.
You sure can! There are no guarantees, but here’s how you can improve your chances of securing a competitive rate:
A clean repayment history and low existing debt show lenders you’re a responsible borrower. If your credit score is strong, you’ll typically be offered better rates.
If you use your caravan as security for the loan, you’ll be seen as a lower-risk borrower. That often leads to lower rates compared to unsecured loans.
If you lay down a decent deposit, you’re lowering the amount you borrow and therefore the risk taken on by your lender. That can help you secure a sharper rate and a faster approval.
Every lender is different. With a single application, Loans Unlimited can compare rates across a wide panel of lenders without affecting your credit score. That gives you a better chance of finding the right fit.
Our Caravan Loan Calculator is designed to show you how different interest rates affect your loan repayments. It asks you to enter your preferred rate, caravan price, deposit and loan term to show you the total cost of your loan.
You can:
Compare different rates side by side
Test repayment options for various terms
Plan your budget with real-world numbers
If you like what you see, get in touch with our crew and we’ll get the ball rolling! Just keep in mind the calculator is an estimate and actual rates are confirmed during the application process
Don’t just think of interest rates as a technicality. They’re one of the biggest drivers of your total loan cost and the more you understand them, the better prepared you’ll be to secure a loan that works for you.
That’s why we developed our caravan finance calculator – to help you plan and experiment until you find the structure suited your lifestyle, goals and long-term budget.
If you’d like to break out of financial orbit and hit the wide open road, click here to use the calculator tool. Or, if you’ve done your planning and are ready to start your application, click ‘Apply Now’ or get in contact with our crew.
