Finance Options
Some people may need a bit of financial assistance to complete their dream purchase, and looking at a private sale caravan doesn't mean that finance isn't available. In fact it can make it easier. Private sales will always be cheaper than what the park can offer, so lenders will view the purchase as less 'risky'.
There are a number of benefits to arranging a personal loan as opposed to the park's Hire Purchase Agreement (HP), but make sure that you weigh up both options.
Benefits of a Personal Loan
- Not having to find an 'up-front' deposit that the park would insist on
- Having a wider choice of lenders and rates available, generally at fixed rates
- Having a loan arranged in advance gives you 'haggling' power
- You'll own the caravan immediately, whereas HP means you'll only own it at the end of the agreement
- You're free to sell the caravan whenever you want, although you'd still need to pay off the loan
Where to Start
Probably the best place is your own bank. They'll have a good idea of your financial history and will be able to make a quick decision. Whether you're looking at a personal loan or adding to your mortgage, the rates should be very competitive compared to a lender who doesn't know your full history. The key comparison rate is the APR.
Parks will generally work in partnership with a few finance providers, and there's no reason you can't approach them directly yourself. These are generally advertised in the sales office.
If you want to search online, then Google "caravan finance" to bring up a list of lenders. There will also be specialist providers available for those who have a 'less than perfect' credit score.
Applying for credit will be recorded on your credit file, so don't be too hasty filling in lots of applications.
Summary
Don't assume that you can't look at private sales because you haven't got the cash available. You'll be able to get more for your money buying privately, and a little bit of homework could save you money and stress down the line.