Take Jenny, she wants to own her own static caravan after spending times in her Mum’s van. She enjoys the freedom and improved family life that regular holidaying gives. Short getaways for weekends suit her lifestyle with the children too.
Jenny would like to buy a caravan, but she doesn’t know whether its best to buy the caravan outright and use up her savings, or does she get a loan to finance the purchase of a van instead? What is the best way to buy a holiday caravan nowadays?
The different ways can be a little overwhelming so we’ve listed out a few things for you to consider when thinking about financing a caravan.
Here are a few pointers and tips to consider to help you with understanding financing or part exchanging a van offered by Llawr Betws:
1. Firstly you need to find a caravan park before anything else – How far do you want to travel? And what kind of park do you want, entertainment, rural or quiet? As you’ve arrived at our page you probably want one at Llawr Betws we imagine.
2. Cost of running a static caravan – We always suggest you break down every single cost associated with the running a van and see if you are still in love with the idea? The ugly truth about a caravan is, like a car the value depreciates, it doesn’t change the quality of your holidays, but you need to know this is the worst part of owing your own piece of luxury is it depreciates with age…as we all do.
3. Which kind of static caravan are you looking for? What are you going to use if for and when and we will help you decide on the rooms and style?
4. The finance agreement. Using finance and is often given over a long period and is a very popular way to buy a caravan, as it spreads the cost of the purchase. We offer finance agreements and have great rates but we ask you to do your research and shop around before committing to make sure you can afford, not forgetting to include the vans running costs.
5. What is a finance agreement – Effectively a finance agreement on a caravan is a loan spread over a period of time. Pure and simple. Do be aware that spreading payments over a long time may give you lower monthly payments but in the end it will incur much more interest.
Always use an Approved Finance Company – We are able to offer a preferred finance provider called Black Horse, they offer very competitive rates and design a loan specifically for Caravan Finance. But you must do your research first and always check out the high street loans for comparison reasons.
The deposits –The bigger the deposit the less you will need to borrow.
The less you borrow means the less your monthly payments will be.
Over the years people have seen the interest rates drop on their savings and rather than see their money do nothing they have bought a caravan for a better quality of life.
Monthly Payments are charged whether you are in the van or not.
Spreading manageable and the word manageable needs to be said again, payments over a longer duration offers the lure of lower monthly payments, but ultimately incurs substantially more interest. Payments are due 12 months of the year regardless of whether the caravan is used or not and are supplemental to running costs such as site fees, gas etc.
Making The Right Choice
As you have seen, there is a lot to think about. However, it is worth putting the time in and doing the research, as sourcing the right finance option is vital to your ownership experience.
Think clearly about what you need to borrow and the duration of the loan term, researching each option and finding which one is best for you. Ensure that you have considered all costs associated with running your holiday home before you finalise a purchase or agreement.
Many customers choose to seek advice from an independent financial adviser before arranging finance.
Questions most asked when
Can I part exchange my holiday home?
Yes. Llawr Betws will accept your old holiday home as part exchange for your new holiday home.
Can I use my old holiday home as a deposit?
Yes. Llawr Betws will accept your old holiday home as a deposit for a new holiday home on their caravan site in North Wales.
Who is the best caravan manufacturer?
At Llawr Betws we only have British made caravans because we believe they have the best quality caravans.
How much to caravans cost?
We have a range of caravans to suit every budget. The first season site fees and rates are included in the caravan price, so what you see is what you pay! Call us on 01490 460224 or come and have a look around. We will help you find your perfect holiday home at the right price for you.
Can I trade in my touring caravan for a holiday home?
Yes. If you’ve decided to upgrade your touring caravan to a static caravan on our quite holiday park we may allow you to use it as a deposit for a static caravan.
Can I get finance on a holiday home?
Yes. Llawr Betws offer flexible finance on holiday homes to suit every family.
Here’s an example of a holiday home we offer finance on:
The Willerby Peppy II 35 x12 foot wide caravan, two-bed caravan. The Willerby Peppy is an exclusively designed model with central heating and double glazing.
Price of caravan £31,999.00
Deposit 20% £6399.80 (You can use your own caravan for a deposit)
Balance to finance £25599.20
over 3 years £798 per month (APR7.8%)
over 5 years £515 per month
over 7 years £395 per month
If you like to discuss your individual and confidential finance plan please call us on 01490 460224 or call in and see us at Llawr Betws, we will be more that happy to show around the caravans and pitches we have available. We are a small family run business, so there will be no pressure sales from us.