When buying an RV with finance, many buyers will be seeking fast caravan loan approval so they can commit to the purchase and get the process moving. Many RVs, especially traditional caravans, are built to order. Buyers can still have some time between the time they commit to buy a vehicle and the time they can head off in their new RV for their first holiday. So, the faster their financing can be approved, the sooner they can start travelling.
But many buyers may wonder if seeking finance through a lender that offers fast approvals means they will need to compromise on being made the best loan offer? This can be considered from a number of perspectives.
Where a buyer is in such a hurry to get caravan finance that they apply to the first lender they find, possibly the caravan dealer, then they may be compromising as a better rate offer may be available through another lender.
But where a buyer utilises the services of a specialist RV finance broker, there should be no compromising on the loan offer. As specialists in RV finance, Jade Caravan Finance assists buyers get fast caravan loan approval without compromising on the best interest rates and terms.
We share some tips and intel that may help buyers be more prepared to apply for caravan finance and as such, expedite approval.
Caravan Loan Approval Guidelines, Impact on Approval Speed
The guidelines for approving RV finance applications can vary with different lenders. As consumer credit, caravan finance is regulated by ASIC, which stipulates what details lenders need to gather and consider. But approval guidelines are essentially set by individual lenders.
The issues that lenders look for in approving RV finance are income levels compared with recurring and ongoing expenses; financial position in regard to assets and debt levels; solid employment; and very importantly, the applicant’s credit score.
The income can impact the credit limit for the individual. Where a loan amount beyond that credit limit is applied for, the application may be rejected. The buyer will need to ‘go back to the drawing board’ and either pay a larger deposit to reduce the financing required; or select a less expensive RV. All that can take time which can hold up approval.
Credit scores are critical to the interest rate offered but also to getting approved. Applicants with good credit scores may expect faster loan approval than those with less than good scores.
To get fast approvals, buyers need to apply to the lender with approval criteria that is in line with their credit and financial profile. This would be a tough ask for buyers that do not typically have intel on lender approval criteria. They may opt to make applications to numerous lenders to see which comes back with the best offer. But that can damage their credit score.
Solution is to use our services. We have over 80 lenders and we know the matrix that our lenders use in approving applications and in making rate offers. We match customer and lender to ensure both the best rate offer is received and the application can be approved promptly.
Applying for a Caravan Loan
Knowing what is involved in applying for RV finance may contribute to faster approval. A quote can be received based on a few initial details. The application form is more involved procedure and requires providing documents and details to the lender or broker.
The information required to apply for consumer credit includes:- verifiable proof of employment and income; tax returns; details of residential status; details of debts and expenses; and similar documentation.
The lender then assesses the application to making any loan offer including the interest rate, loan amount and term, and for approving the application. When an offer is accepted, the loan is finalised, and settlement is arranged.
Tips for Fast Caravan Loan Approval
Here’s a few tips for getting fast caravan loan approval:-
- While checking out caravans, also start gathering the necessary financial documents in readiness to submit with the application - income tax return, proof of income and employment, etc. Any delay in you having to source these documents can delay approval.
- Have the necessary details on the vehicle being purchased ready. The lender will need to know what vehicle is being purchased. Have the dealer invoice ready to submit or if applying for pre-approved finance, prepare a brief of the vehicle you are planning to buy.
- Insurance is required on goods under finance. Lenders will not settle until details of the insurance cover is provided to them. Get insurance quotes and make a decision on insurer asap so you can quickly finalise that aspect.
- Have a ‘Plan B’ to make a larger deposit if the loan amount requested is not approved. This information can quickly be communicated to the lender and the application processing may then proceed based on the amended loan amount.
- Improve your financial position prior to applying by paying off debts such as credit cards and loans.
- Use a finance calculator while considering RVs to purchase, to obtain loan estimates to ensure the vehicle being purchased is within affordability and loan amount required within lender approval guidelines. Applying for a loan for vehicle amount beyond credit limit will waste time in getting approved.
- Apply for pre-approved finance to be ready for a quick purchase.
- Use Jade Caravan Finance brokers to handle your loan – from initial enquiry, through application process and approve, and on to settlement.
All buyers can use our broker services to source RV financing on all types of vehicles. We always source the most competitive rates, and many applications are approved in 24 hours.
Don’t delay travel plans or compromise on the best rates – apply for RV loans with Jade Caravan Finance.
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.
