You’ve done it. You finally made the decision to purchase a caravan. If you are a natural adventurer, caravanning can be a liberating way of exploring the world.
While the idea of owning a caravan is one thing, taking the leap and going through with the purchase is an entirely different story. After all, it is a large expense that needs to be covered by an effective budgeting plan.
Speaking of which, here are five important tips to keep in mind when budgeting for a new caravan:
1. Know What Time of the Year to Buy
When buying a caravan, knowing when to strike can pay off.
Although when it comes to picking the right time to make a purchase, it’s simply a case of applying logic. Take clothing, for example. When will a winter coat typically be at its most inexpensive? Due to the lack of demand, this will obviously be during the summer months.
Well this same line of thinking works with caravans. When the sun is brightest, people are reminded about the fun and excitement of escaping from normality with a caravan. However, the same type of emotion is not usually evoked when the weather is all cold and gloomy.
As a result, look into purchasing a caravan during the winter season. Demand is low during this period and dealers will be more likely to reduce prices as a result.
2. Trade in Your Car
If you have a caravan, you will need a car to tow it around. Sadly, this means you can’t simply swap your car for a caravan.
With that said, trading your car for another car could help your budget’s cause. It’s possible to downgrade your current mode of transport, saving a few pennies in the process. Plus it might be a necessity to change car — you will need a vehicle which is up for the job of towing a caravan. The general rule is the caravan shouldn’t surpass 85% of your car’s weight.
3. Receive a Helping Hand
If that helping hand isn’t from a generous family member, look at the possibility of getting finance for your caravan purchase. One such way is with a personal loan. As Auto Finance Online demonstrates, you can instantly gain a loan that covers the entire fee for your caravan. Moreover, interest rates are competitive and even those with bad credit can be accepted for a loan.
4. Remember the Post-Purchase Expenses
You have bought the caravan. That’s fantastic. However, it is still just the start, and that includes the financial side of the caravan. This is because you will be forking out on the regulars to cover various expenses. Listed below are some of these outlays you will likely need to cover with your caravan:
- Adding a tow bar to your vehicle
- Caravan storage
- Although not mandatory, it’s highly recommended to acquire caravan insurance
- Annual servicing
Furthermore, remember that caravans can depreciate in a similar manner to cars. As a result, consider this to be something of a hidden cost of caravan ownership.