Breaking down the barriers

Peter Quilty — 24 April 2019

Have you ever felt like you’re bashing your head against a brick wall when it comes to RV finance? Well, stop wasting your time… Here’s how you can break down the barriers, according to expert industry advice from Credit One.

The feeling of freedom that having an RV and no set time schedule affords is second to none. Whether you’re considering taking the family on the trip of a lifetime around Australia or searching for an adventurous way to enjoy retirement, purchasing an RV is a yearning for many. However, when it comes time to purchase your dream RV, there are countless questions that must be answered and numerous decisions that need to be made prior to settling on the perfect ‘mobile home’.

One of the biggest conundrums experienced by most people is financing their prospective pride and joy. Whether you have the cash to pay for it outright or not, there are a number of barriers that finance may help to overcome.



‘DEEP POCKETS’

One of the most prominent reasons people choose to finance an RV is to help free up their funds. While you may have the money to purchase an RV outright, paying a large lump sum up front for a vehicle will no doubt empty your bank account, leaving you at risk of potential financial hardship. The alternative is low-rate RV finance which combines your RV finance repayments into easy-to-manage and affordable monthly sums, while keeping your capital free in the unfortunate circumstances that something unexpected happens.

Credit One’s specialist RV finance consultants can even arrange extended warranties on new and pre-owned RVs purchased both through dealerships and private sales. Thus you’ll have peace of mind that you won’t be out of pocket for mechanical failures or associated emergency accommodation, towing or hire cars up to the specified limit. Best of all, Credit One’s consultants can arrange for extended warranties as well as other costs such as comprehensive insurance to be included in your affordable monthly repayments so the only thing you have to worry about is where you want to go first.

BANG FOR YOUR BUCK

And there is another very valid reason for financing your RV as opposed to paying cash for it. It enables you to get more for your money!

If you have saved $30,000 to spend, you can purchase a pre-owned RV; however it will most likely be an older model with higher kilometres, more wear and tear and fewer safety features. 

Whereas, simply using part of that money as a deposit to finance an RV suddenly opens a whole new realm of possibilities. Now you’re able to purchase a model that’s better suited to your needs with more safety features, more suitable equipment and better long-term reliability.

AVOID AT ALL COSTS

Steer clear of redrawing on your home loan or having to sell.

Calculations show that redrawing $50,000 to purchase your RV from the average Australian mortgage in 2018 at the average standard variable home loan rate for 2018 can add up to an additional $88,126* just in interest over the life of your mortgage. That’s more than the cost of your RV!

While your home loan interest rate may look very low, the effect of compound interest over a long period has the potential to make it a much more expensive option.

CONSULT AND COMPARE

Before deciding whether to purchase outright or finance your next RV, consult the specialists at Credit One to compare your options. A personal finance consultant can help you weigh up your options and determine which one best suits your individual needs.

Credit One can also arrange an obligation-free finance pre-approval. This means that you can see an estimate of how much your repayments will be before making your decision. The other benefit of a pre-approval is that it’s like ‘having the money in your back pocket’, which improves your negotiating power with prospective sellers.

In addition to bank-beating finance, a Credit One finance consultant can also arrange competitive insurance quotes for you with the leading RV insurance providers as well as investigate extended warranties for peace of mind.

Footnote: Why should you choose Credit One for your finance? Credit One has provided faster and smarter finance solutions for more than 100,000 individuals and businesses for nearly 20 years and has been named ERIC Insurance ‘Broker of the Year’ for the past three consecutive years.

To find out why more Australians are choosing Credit One for all their finance needs, phone its experienced consultants for an obligation-free chat on 1300 CREDIT (1300 273 348) to get an instant finance quote.


* Comparison is based on adding $50,000 to the average Australian mortgage price in 2018 for all states provided by eChoice, and using the average Australian standard variable home loan rate for 2018 provided by Finder over a 25-year loan term where no additional repayments are made. 

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