are the main options
- Hire Purchase
- Personal loans
- Secured Loans
or mortgage advances
- Personal Contract
Always check three
things with any finance deal:
- How much are
the monthly payments and any additional payments
at the end or start of the deal
- How much interest
are you paying in total and over what period
- What are the options
and penalties if you want or need to come out
of the deal
This type of loan
is generally secured by the caravan which means
that you don't actually own the caravan until
the last payment is made. Other conditions such
as keeping the caravan in good order and fully
comprehensive insurance are often conditions.
In terms of re-payment you pay a deposit for the
caravan and make regular monthly payments until
the debt is repaid. HP is offered widely at dealerships
and they will earn a commission from the finance
company for each one sold.
We advise you to check the APR which by law they
have to tell you. The higher the APR generally
the worse the deal. However, the best way to compare
is to calculate how much you pay back as sometimes
HP can be very expensive.
Also if you wish to sell you caravan and early
redeem your HP don't expect to only pay the interest
for the time as often these deals have all the
interest loaded at the front i.e. you pay the
and the amount you borrowed.
These used to be
called bank loans except now you can buy them
pretty much anywhere - supermarkets, banks, building
society and the internet.
You simply tell them how much you want to borrow,
its not attached to a car so you can sell the
car when you want. You pay back what you borrow
and interest. Again compare providers by the APR
and what you pay them back.