If you are planning to purchase a caravan or motorhome for your family holidays or to hit the open road for a nomadic adventure a caravan loan may get you on the road for your next adventure sooner than you thought.
Australians have always loved the freedom of owning a caravan and for many this has been a long-held tradition for generations.
Owning a caravan or motorhome has many benefits; families can take their kids on summer holidays without the expense of paying for luxury family friendly resorts and it gives you the freedom to travel where and when you want.
Owning a caravan or motorhome is one of the most cost-effective ways to explore the great Australian landscape, with all the creature comforts of home.
Applying for caravan finance or a motorhome is much easier than choosing your new or used caravan.
Caravan Loans are just like personal loans, they can be either fixed or variable, secured, or unsecured.
With a fixed loan, the interest rate will remain the same throughout the term of the loan, however you will not be able to make any additional payments.
With a variable interest rate, repayments can change throughout the term of the loan, subject to any fees, you may be able to make additional payments to pay out the caravan loan sooner.
Secured Loan - Is when a lender allows you to use your caravan as security over the loan, the benefits of a secured loan to purchase your caravan is that you can benefit from a lower interest rate, however if you default on the loan, you risk losing the caravan.
Unsecured Loan – Unsecured loans allow for flexibility, however as the lender is taking more risk the interest rates will be higher.
Certain factors will determine the interest rate such as your credit score, and the age of the caravan.
You can purchase a caravan from a dealer or private seller and the caravan can be new or used.
When applying for a caravan loan for a used caravan, lenders will take into consideration the age and in certain instances the condition of the used caravan when assessing the loan application.
If you are buying a used caravan from a private seller, you should visit the Australian Governments Personal Property Securities Register website to check if there is any caravan finance owing on the caravan before you purchase it.
Yes, caravan loans can be pre-approved. If you have not found the caravan of your dreams just yet, that is ok, as most lenders will allow you to apply for a pre-approval. With a pre-approval you will know just how much you can borrow before you start looking for your new caravan or motorhome.
No matter if you’re looking at a new or used caravan or deciding whether to get a fixed or variable caravan loan, you first need to compare your caravan finance options.
Comparing your caravan loan options can save you hundreds, if not thousands of dollars just by finding the right loan product for your specific situation.
The easiest and quickest way to compare your finance options is to take 5 minutes to do a loan comparison to find the best caravan loan for you, from over 60 different lenders and banks.
The caravan loans comparison tool will not impact your credit score.
When comparing caravan loans look at the following:
You can apply for caravan loans if you are:
All content is general in nature. Before undertaking any financial decision, please obtain personal financial advice that is tailored to your situation and is documented in our credit guide.
Jeffrey Parker is an authorised credit representative (Credit Representative Number 394045) of Custom Equity Group Pty Ltd (Australian Credit Licence Number 383666).
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