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Hi all,

Thought that we would pick your brains about something!! Looking to swap from a tent to a caravan after only camping under canvas twice! We are happy to purchase a secondhand caravan but as we are looking for one that is only around 4 years old they seem to be holding their value. We have seen a new Bailey Ranger for around £4,000 more & the payments seem OK but the interest they throw on you is quite incredible.

To those of you who have purchased new vans then did the interest via the finance concern you?

We want to get one asap but this is worrying me & my other half.

The secondhand caravan that we have our eye on is a Bailey Ranger 510/4 2006 with lots thrown in....full size awning...porch awning....water carriers...gas bottle....trauma mover.

What would you do???

Thanx in advance guys!

If you think the interest is excessive, why not try talking to your normal bank for a loan and see if the repayments are any less. Or even search here;

http://www.moneysupermarket.com/loans/

Why not try your bank to see if they can come up with a better deal. Finance houses used by car and caravan dealers often charge high interest rates.

David

Id definitely go for the second hand one, with all the extras thrown in.  As you say, the finance will be crippling, and as soon as you tow that new van off the forecourt, the depreciation will be frightening.  If you decide you dont like caravanning, or you decide on a different layout (and loads of us have done that the first time, myself included) youre losing thousands of pounds.  

Second hand vans are only holding their value on the dealer's forecourt, try trading one in and its a different story. Or you would have the hassle of trying to sell privately.Either way, you're losing out.  We saw the exact same van as ours on our dealers' forecourt three weeks ago, at £50 short of ten grand.  When we enquired about trade in, (saw an Elddis  we liked!) the most they would offer was £6,500, and that was after some haggling.  We walked away.

Haggle hard for the extras and make sure you get a decent guarantee. 

Look around for the best interest rates.  Our bank was the cheapest when we needed a loan a while back.  It didn't make an awful lot of difference on repayments but £10 a month saving soon adds up.  Also we never get the repayment insurance as we know how notorious they are at not paying out which saves a lot of money on repayments. 

Personally i'd only want a small loan or better still none at all and go for an older 'van that doesn't cost me too much once purchased. 

Also with a loan on a 'van are you going to be able to afford to go away in the 'van or will all your spare cash go on repaying the loan?

My dh decided to buy a new car last year on finance but the repayments meant all our spare cash was going on that and we couldn't afford to go away in our 'van.  Eventually he sold the car, repaid the finance and we can go away in the 'van. 

hth

Black horse is used by all the caravan dealers (car dealers too) but last year when we were looking into purchasing a van the interest was unbelieveable but then when we went elsewhere & told them that the other dealer had given us a good rate he said he could match it!!! We ended up buying a tent instead though.......but now the time has come for us to buy a caravan!!

This is me going to sound rather thick now but 4% on say £12,000??? How much interest is that........

 "Black Horse at 4%"

is that APR or flat rate?  if flat rate the apr will around 9%

is it a fixed rate ? probaly not and rates are expected to rise

What are the fees ? arrangement fees and early payment fees,check

Sainsburys bank 7.8 APR fixed rate, no set up  fees is a better deal

Quote: Originally posted by tezmil1 on 04/8/2010

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4% apr for me got a good deal.
yes it is a fixed rate so no rate rise for me.
no early payment fee in fact there is a discount for early settlement as is the case with most finance deals.

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