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New Caravans And 10yrs To Pay!.


AWanderingLancastrian

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Hi to you all out there. I don't know whether this is a bit of late News!!!,but I have been told today that a certain caravan retailer group is offering New Deal caravans with 10years to pay.

Is the industry going the way of the Motor Trade in respect of flooding the market with new vans that the owners end up not keeping for what ever reason and giving up on the contract with the keys and documentation and the caravan being handed back to the finance house.

If the finance is provided by The Lloyds TSB group as a great many are, will they be selling PPI fully transparent in the foreseeable event of job insecurity?.

No more wages,no more payback.

If the industry is flagging for the larger dealers with multiple staff and big overheads is the way forward to effectively give them away for a small monthly payment over 10years ?.

Surely this is shooting themselves in the foot, as the number of potential New Buyers tied into medium to longer term deals are unlikely to return because of the effective loses incurred when trade-in figures make their eyes water.

Life in general can be a journey of chance with some winners and sadly some losers. Your outfit can never be left to chance. A short-while carrying out essential checks can ensure a long-time of happy & safe caravanning for all concerned.
Ignorance can often be bliss but is certainly not an excuse and when continually disregarded they can be totally disastrous for oneself and the innocent parties.

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I would never consider finance on something over a longer period than I would keep it. Sounds like a recipe for disaster.

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I would never consider finance on something over a longer period than I would keep it. Sounds like a recipe for disaster.

I Will Second These Words Of Wisdom

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wouldn't go down that road either, not when there are so many, reasonably priced, used 'vans on the market anyway for those wanting to upgrade,

the greatest benefit for the greatest number

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Hi to you all out there. I don't know whether this is a bit of late News!!!,but I have been told today that a certain caravan retailer group is offering New Deal caravans with 10years to pay.

Is the industry going the way of the Motor Trade in respect of flooding the market with new vans that the owners end up not keeping for what ever reason and giving up on the contract with the keys and documentation and the caravan being handed back to the finance house.

If the finance is provided by The Lloyds TSB group as a great many are, will they be selling PPI fully transparent in the foreseeable event of job insecurity?.

No more wages,no more payback.

If the industry is flagging for the larger dealers with multiple staff and big overheads is the way forward to effectively give them away for a small monthly payment over 10years ?.

Surely this is shooting themselves in the foot, as the number of potential New Buyers tied into medium to longer term deals are unlikely to return because of the effective loses incurred when trade-in figures make their eyes water.

Hi Rooster,

 

10 year deals on caravans has been around for a number of years so this is nothing new.

 

Voluntary Terminations are at an all time low depite the economic climate.

 

Lloyds TSB stopped selling PPI in July 2010

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How many people have £16k to spend on van thats why deals like this exist

 

Also those that say they won't tie themelves down to this lenght of finance but take out a 25 year mortgage. Remember anything can happen to the house in that time

 

There have been changes to Personal loans in that you can make additional payment to clear off the debt quicker without incurring charges

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i know it's not strictly 'on thread' but i think this may just illustrate one more reason NOT to take up such a deal,

 

against my advice our eldest daughter bought her 1st nearly new car on hp last year, she signed up to a 5yr deal, not going into all the details as would take to long, suffice to say the pitch price for the car was £6995, but at the end of her term with interest and such added on, the total she will have paid back is just under £21,000 and the car is already starting to cost her money to keep on the road as it is now out of warrenty.

 

when it comes to long term finance deals on car's or caravan's , it's definitely a case of buyer beware

the greatest benefit for the greatest number

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We were offered the 10 year finance deal to buy a motor home last year. Eevn being offered £14k as a px on our van, that still left £23k to pay for the motorhome, so over a lesser period, the monthly payments would be high. When i said to the dealer that 10 years was a long time, he just said, yeah, but you'll up-grade within 4 & by that time, with these motorhomes holding their money, you'll still get back what you paid.

We didn't do the deal, not because of the finance, but wehn we sat down & really thought about it, we just decided that the caravan was the better option for us.

I wouldn't, though, have a caravan over 10 years. We bought the car & van in the same week & had to finance one, so we worked out what was the better deal on offer, financed the car & paid cash for the van.

I refer you to the Rt Hon Member for the 19th Century.....................pictured just to the left of your screen..................

 

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How many people have £16k to spend on van thats why deals like this exist

 

Also those that say they won't tie themelves down to this lenght of finance but take out a 25 year mortgage. Remember anything can happen to the house in that time

 

There have been changes to Personal loans in that you can make additional payment to clear off the debt quicker without incurring charges

 

i agree in part with what you say but come on theres much more chance that the house will still be there at the end of your mortgage period and will probably have increased in value to a greater or lesser degree.

 

but how much will your 16k caravan be worth after 10yrs ? and if the buyer is NOT able to make higher payments to shorten the term of the loan how much over the odd's in high interest fees etc, would have been paid for it, sorry but imoho the sums just don't justify that type of expenditure on what is essentially a luxury item that will have significantly depriciated in value by the end of my loan period

the greatest benefit for the greatest number

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I wouldnt want to tie myself in for a ten year deal on anything. I don't think I have ever kept anything that long.

 

Only thing I've kept longer than 10 years is SWMBO and that has cost me fortune over the years!!! :D :D :D

 

G.

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It makes me wonder if that's the reason there's been a huge increase in the number of motorhomes we see on sites nowadays, it's one way of aquiring one without the worry of big monthly repayments over 2 or 3 years.

 

jim

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but how much will your 16k caravan be worth after 10yrs ? and if the buyer is NOT able to make higher payments to shorten the term of the loan how much over the odd's in high interest fees etc, would have been paid for it, sorry but imoho the sums just don't justify that type of expenditure on what is essentially a luxury item that will have significantly depriciated in value by the end of my loan period

 

Let me put it this way if nobody bought vans through finance and only paid cash there would be no secondhand caravans to speak off

 

We should be grateful that people do this otherwise there would be a very small second hand market and prices would be high

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I cannot see how it will work as you will be paying off at an even amout over the 10 years and the vans value will drop mostly in the first few years so you will be spending most of the time with a van worth less than you owe on it. That is rather difficult for the lender to live with. All I can guess is that they will not lend anything near the purchase price.

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I bought a 10 month old 55 mondeo tdci ghia, book price new £24000 I paid £12500 (3500 miles) was promised and hoping to get £7000 last year(50000 miles) was offered £2400 px, looks like I'm keeping It.

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Seems to me a very expensive way to buy a luxury item. (After all a caravan is a luxury).

As Oldowl posted, when interest is added on and depreciation taken off, the final cost will be eye-watering!

Marc.

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Seems to me a very expensive way to buy a luxury item. (After all a caravan is a luxury).

As Oldowl posted, when interest is added on and depreciation taken off, the final cost will be eye-watering!

Marc.

 

How long will it take for people to save up and buy a brand new caravan

 

All finance does is make the opportunity now rather than XX years down the line

 

People who buy on credit don't look at the whole cost

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Guest Benzowner

Couple of things, house prices over the last few years have dropped, yet we take out 25 year mortgages, house prices dropped significantly back in early 90's, yes they recoverd, but there was no guarantee.

 

I cannot see how it will work as you will be paying off at an even amout over the 10 years and the vans value will drop mostly in the first few years so you will be spending most of the time with a van worth less than you owe on it. That is rather difficult for the lender to live with. All I can guess is that they will not lend anything near the purchase price.

 

How about if the loan is a personal loan and NOT secured in anyway on the vehicle being bought. In that case, all they will be looking for is ability to pay and that is why everyone is spouting off about credit ratings. Also paying an even amount over 10 years, you know what your holiday costs each year, plus a little for site fees. Bare in mind there are a lot of people out there who spend thousands of pounds on annual holidays abroad, it is all relative I gusee.

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How long will it take for people to save up and buy a brand new caravan

 

All finance does is make the opportunity now rather than XX years down the line

 

People who buy on credit don't look at the whole cost

we've all used credit at one time or another (mortgage) so I wouldn't look down your nose at them - you have to be in their shoes before you can judge! It is however to my mind a very expensive way of buying what I consider to be a very relatively simple item which is vastly over priced.

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the bank offered me a apr off 7. 9% to purchase our caravam we didn't bother at the time but went back about 2 months later after we saw one we liked, apr 18% told them to stuff It, she then drpped It to 7. 2% £90 per month drop just like that, someone who Is desperate might of took the 18% and been even more desperate

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It is however to my mind a very expensive way of buying what I consider to be a very relatively simple item which is vastly over priced.

 

Debt drives our economy

 

If everyone spent or saved within their means there would be no economy to speak of

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Debt drives our economy

 

If everyone spent or saved within their means there would be no economy to speak of

am only playing devils advocate, not having a dig

but isn't that kind of thinking why the economys in the mess it is now ? i. e. people, inc' the government, borrowing and spending way beyond their means

the greatest benefit for the greatest number

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