The true cost of owning a holiday caravan
Park Holidays UK has issued a six-point guide to the true cost of owning a holiday caravan or lodge. Director Tony Clish hopes that the check-list will encourage would-be second home owners to look beyond the headline price to discover the actual annual cost.
Since Park Holidays UK began selling caravan holiday homes at prices from £5000, says Tony, a number of other operators have tried to match their offers. However, there may be hidden expenses which could turn a bargain into a burden.
For example, said Tony, many people use finance offered by the park to fund their holiday caravan - but forget that the business may be making a healthy profit from a hefty interest rate.
Park Holidays UK, he said, had negotiated with financial institutions to achieve an APR of under ten percent. Some sellers, warned Tony, quote more than twice this figure.
Pitch fees which rocket after the first year are another way to end up paying dearly for a supposed bargain - so check there will be no sudden large hike in the contract to which you'll be committed.
As a third precaution, Tony advises checking if those fees really are inclusive. Some owners, he says, have been horrified to find hidden charges added to their bills for water and rates.
Electricity could provide another shock for the unwary, he cautions, along with sky-high charges for gas. Tony suggests buyers obtain a written quote from the park on what it will invoice per unit.
At Park Holidays UK, he says, owners are often surprised to find themselves paying up to a third less per unit of electricity than they do at home - thanks to the group's policy of passing on the benefits of its massive buying power with energy companies.
Tony also suggests questioning the park closely on its insurance policies. Do they insist you buy your cover from them? If so, what's included, and how much will it cost?
He says that although Park Holidays UK is happy for buyers to shop around for insurance suppliers, most prefer using the comprehensive and keenly priced policies negotiated by them.
Finally, if your intention is to earn extra money from sub-letting, Tony advises quizzing the park closely on what level of income owners have previously enjoyed.
Park Holidays UK, he says, publishes figures for each park - and can show annual earnings of up to £10,000 from a single unit, with many owners funding all their running expenses from letting.
According to Tony, the group's affordable pricing policies for new and used caravan holiday homes has sparked reactions from within the industry - but buyers should still tread with caution:
"A proper comparison will always involve weighing up the additional costs of ownership, and we are completely up-front about these because we know they are fair and transparent.
"Holiday homes are all about relaxing and escaping everyday concerns - so the last thing we want is people worrying about what's going to drop through the letterbox!" added Tony.
Park Holidays UK has introduced a special section to its website - ParkHolidaysUK.com - giving general guidance to first-time buyers on the ins and outs of caravan ownership.