What can be better than going out in a caravan as your mood strikes to escape to nature and unwind after a long stressful week? While a caravan can be a great way to plan an instant holiday, buying one requires considering several factors. First, you need a clear idea about the kind of caravan you want to purchase. After making that decision, you must know about the most viable finance options available and whether you can get caravan finance with bad credit. So below are all the details to help you start with your purchase process.
Key Considerations Before Buying a Caravan
While there is not a wide range of makes and models available like that of a car, there are various things you need to consider before the purchase, including:
Power of Your Car
Nobody wants the hassle of buying a caravan only to find out that the car cannot tow it. So, make sure you check the towing limit of your vehicle and choose your caravan accordingly.
Double or Single Axle
Manoeuvring caravans can be difficult while towing, and here, your choice of a double axel or single axle can make a lot of difference. As such, a caravan with a double axle is much heavier and bigger than one with a single axle.
Look at the Size
It is tempting to buy the biggest caravan available. However, it may not be such a practical idea, especially if you have never towed a caravan before. So, it is better to start with a small one, while usually, a car can tow a caravan that is 2.55 metres wide and 7 metres long.
Consider the Usage
Consider everything about how you are going to use your caravan. For instance, if you intend to sleep on it, check if the beds are long enough. Also, consider the size of the caravan and assess its facilities and functionalities. A caravan with a perfect layout can be more difficult to find than you think as you come across a wide range of options. So, don’t make a mistake here.
After deciding the type of caravan you want, check out the finance options. Caravans can be expensive, so you will likely look for the best finance options. And when you are getting caravan finance with bad credit, there are two financing options: hire purchase and contract purchase.
Hire purchase: Your loan remains secured against the caravan in a hire purchase agreement. All you got to do is pay a deposit upfront and make monthly repayments along with interests till the completion of the finance term. And when you reach the end of the agreement term, you have become the owner of a brand-new caravan.
Personal contract purchase: When you opt for a personal contract purchase, you pay off the depreciation of your caravan. It means you are paying the difference in caravan’s worth at the start and end of the contract. And once the agreement term ends, you may make a balloon payment which is the caravan’s outstanding value. Also, you can have the alternative to hand it back or get into another agreement.
Buying a caravan doesn’t have to be complicated. And now, with easy financing options, you can turn your dream of owning a caravan into a reality. However, make sure you are able to make timely repayments throughout the loan tenure before you apply for the loan. So, check the vehicle’s specifications and loan eligibility and take a step forward towards purchasing.