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Private Leasing & Traditional Bank Loans

Guest post by: Nick Julian

Article Overview: We've had numerous questions regarding which is better, so in turn we decided to give our opinions in comparison. Each persons situation will differ depending on your assets and current job status.

Private Leasing & Traditional Bank Loans

Caravan Loans can be a hassle if the salesperson starts confusing you with terms you haven't heard before. Despite how complex terms like "hire purchase, residuals, and balloons" sound most of them are rather simple, with a little knowledge and understanding you can assure you'll get the best value for your money.

With today's lending options you no longer have to save up enough money to purchase a caravan outright. You're now given the opportunities from numerous lenders such as traditional bank loans, and novated leases. These options allow you to pack up and purchase your motor home at a much earlier date.

So what's right for you? It comes down to personal preference, if you purchase the caravan outright then you own it it's your to do with as you please. Leasing your caravan means you are only paying for the usages of the caravan, and once the leasing term is up, you have to hand it back to the leasing company. The leasing company may also offer a certain package which allows you to purchase the motor home at the end, but this comes down to the lender.

Obviously there are pros and cons for both sides of the deal; from a tax aspect it would save you a decent amount of money to lend the motor home. Although it is a topic that we advise you discuss with your accountant first.

The vast majority of people in Australia are still choosing to purchase their caravans. Although the increase of private leasing has seen a steady increase over the past 12 months, so it seems we still live in an ownership run culture.

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Article Tags: australia, bank, caravan, lease, leasing, lending, loan



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