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So, you don’t think it is possible to buy a caravan, boat, trailer, motorbike, quad or any other asset at no cost? Before you dismiss this idea and begin looking for a caravan loan, motorcycle loan, trailer loan, boat loan, diamond finance, any other asset finance or mortgage, or an equity or mortgage loan to finance an asset purchase, have a look at how Bobby and his wife Lindi financed the purchase of their caravan!

(Although this is a South African example in ZAR currency, the principle is applicable anywhere in the world.)

Bobby and Lindi are ordinary average salaried citizens …

Bobby and Lindi wanted to buy a caravan for their family and were getting asset finance quotes from financial institutions. They also had other outstanding debts (motor vehicle and credit cards) to the amount of 220,000 which they were repaying at an amount of 5,355 per month. The price of the caravan they wanted to buy was 115,000. They owned a home which they bought with a 100% mortgage loan over 20 years, 5 years ago.

Their home has since increased in value by approximately 45% and their equity (the difference between the value of their property and the claims against it) now amounted to approximately 350,000.

They were offered asset finance for their caravan by a financial institution with a monthly installment of 3,032 per month over 54 months, and then created a budget for this amount in their monthly budget.

Bobby and Lindi heard from a friend about an asset finance plan that shows you how to finance your own capital and asset purchases through a technique called Hydraulic Debt Cancellation, with amazing results – if you are a property owner with equity. Apart from being able to finance your own capital and asset purchases, it includes a powerful debt cancellation technique.

Bobby and Lindi decided to investigate …

Bobby and Lindi decided to put this asset finance plan to the test and amazingly discovered that they were able to pay for their caravan as well as redeem al their short term debts, while repaying their mortgage in 7 years in stead of the 15. In the process they will be saving 118,098 in interest (compared to the interest they would have paid on their original mortgage), while the amount they borrowed to finance their caravan only amounted to 115,000. They so to speak, got their caravan for free!

They achieved all this without paying a single dime more than they would have, had they accepted the asset finance offered by the financial institution above!

Smart couple! Wonder where they found the information to do such a clever budget?

The way in which you finance your asset purchases can have a dramatic impact on your wealth – by either increasing your debt, or increasing your wealth!

By: Elmer Grobler