Written by Kodie Axelsen
Now more than ever people are hitching up their camper trailers and caravans and travelling locally. For some these assets may seem out of reach, but did you know you can finance your caravan, camper trailer, rooftop camper, boat or jet ski?
There are 2 ways this can be done, either by a secured loan or an unsecured loan. Leisure assets are not one of the top things banks want to finance so if they are older assets they generally will not want to finance them.
BUT! Da da da duuuuun…
There are ways around this! We can use an unsecured loan where the loan is not secured by the asset you are purchasing. This can be a quick way to buy what you want.
But beware. Unsecured loans are more risky to banks so they will charge you a higher interest rate. If you do want to go down the path of an unsecured loan my suggestion is to be smart about it. If you sell that asset then pay out the loan.
A lot of people can get stuck when they take out unsecured finance then sell the asset and then keep the loan.
This can leave you in a position were you are stuck and your only option is to keep paying that loan down until it is paid out which can affect you future plans of buying a house or borrowing further money.
When you choose secured finance that means the finance is attached to the asset you purchased. If you sell it, then you have to payout the loan.
Secured loans are cheaper as the bank can come and repossess the asset if you stop paying for it and recoup their money. Less
Risk = Cheaper
Spring is here and the weather is fine! The next time you think you might want to buy that boat or camper trailer give us a ring. We are more than happy to run you through your options.
After all, money is our thing!