Key takeaways
- To borrow money to buy a caravan, you can use either a specific caravan loan or a personal loan.
- When you compare loans you need to consider the interest rate, fees, features, and whether you want to secure your loan or not.
- Different lenders will have different criteria, so it's important to know what you want and then check with each lender.
Caravan loans can help you finance your own caravan, teardrop trailer, fifth wheeler caravan or even an RV.
While caravans can be expensive, there are plenty of caravan loan products on the market. Compare them below and apply online.
Compare caravan financing options
Finder survey: Why do Australians buy a caravan?
Response | |
---|---|
Cheaper holidays in the long run | 55.17% |
See more of Australia | 31.03% |
High cost of international travel | 10.34% |
Other | 3.45% |
How do caravan loans work?
You can borrow money to buy a caravan and that works in a couple of different ways. Typically, you'd get a personal loan and repay the money you've borrowed plus interest over a specific period of time.
You might also be able to get a vehicle loan that allows for the purchase of caravans.
The interest you pay on top of the loan will be either a fixed or variable rate. Fixed loans mean your monthly repayments stay the same throughout the term. Variable loans means they can change, but they tend to be lower.
Types of caravan loans
- Secured personal loan. Use your caravan as security and benefit from a lower rate. These loans can either be referred to as car loans or secured personal loans, but all come with similar features. You'd need to check that the lender allows the use of a caravan as security as some do not. But if they do, you risk losing your vehicle if you default on the loan.
- Unsecured personal loan. This loan allows for greater flexibility with your loan amount, so you can use it to purchase accessories for your caravan or even insurance. Unsecured personal loan rates are higher because the lender is taking on more of a risk.
- Caravan financing from a specialist lender. Several specialist lenders operate in this space. Remember to check the reputability of these lenders before you apply.
How much can I borrow for my next caravan?
Use the caravan loan calculator below to calculate out how much you could borrow and what your repayments might be.
Your loan details
Overview of your loan
Years remaining | Principal remaining |
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What types of caravans can I purchase?
The road you’ve chosen to travel notwithstanding, there’s a caravan out there that can make travelling on it a pleasure. Find out more about what types are available below.
How should you compare your caravan loan options?
- Find out the interest rate. The lower the interest rate, the lower you'll pay on top of your borrowed amount. Interest rates for caravan loans tend to be quite competitive. Decide whether a fixed or variable interest rate is right for you and go from there.
- Check the fees. Fees to look out for include application fees and ongoing service fees. With a fixed loan you're also more likely to experience early repayment fees.
- Will the loan be secured or unsecured? Unsecured loans can have less risk for yourself but they often have higher fees to compensate.
- Are you given flexible repayment options? Most caravan loans tend to have flexible loan repayments but some are better than others. Look at whether they offer fortnightly or monthly repayments, if you can pay by BPAY or direct debit, whatever works for you.
- See what loan terms are on offer. The term lengths of caravan loans vary depending on which financial provider you go with. The amount of money you borrow will influence the term length but it’s also recommended you have a rough idea of how long it will take you to repay the loan before agreeing to anything.
What to avoid with a caravan loan
- Watch out for over-committing to a high loan amount. Ensure that you're not borrowing more than you can afford to pay back. It's important to not get yourself into too much debt.
- Any hidden surprises in your contract. Just like with any other loan, you will be required to commit to a contract. Make sure you carefully read through your contract before committing to it so you aren’t hit with any unexpected charges
"If you're buying a caravan, sorting out your finance is important but it's not the only thing you have to think about! And like you can save hundreds, if not thousands, of dollars by comparing loan products, the savings don't stop there.
Don't forget to compare caravan insurance too, as this could save you even more money and also ensure you are covered should anything happen to your new van."
Can I get a caravan loan if I'm retired?
Caravan loans are available to people in various financial situations, including pensioners. However, lenders differ on their eligibility criteria. Lenders usually have minimum income requirements and consider certain forms of income, so lenders offering caravan loans to pensioners may consider the age pension or super payments as income, or even consider income from rental payments. More specific information is provided in the table at the bottom of the page.
To get your application across the line, provide as much detail and documentation on your income streams and finances as possible.
How to start your application for caravan loans
The first thing to do is compare personal loans and vehicle loans to find the right finance option for you.
Once you've found your lender, you can usually submit an application online. Make sure you have all the relevant information and documents with you that you might need, such as personal details, employment and income information, and vehicle details for a secured loan.
Most lenders now have complete digital capabilities, but the lender will let you know if there are any extra steps they need.
Am I eligible for a caravan loan?
Typically, to be eligible for caravan finance you must:
- Be at least 18 years of age
- Have a good credit score
- Be employed or self-employed
- Be an Australian citizen or permanent resident or (depending on the lender) be on an eligible visa
What documents will I need for my caravan loan?
You might need:
👉🏼 Drivers licence
👉🏼 Medicare number
👉🏼 Payslips or proof of income
👉🏼 Confirmation of your address
👉🏼 Vehicle details for a secured loan
What criteria do I need to consider when I'm applying?
Lender | Loans you could apply for | Criteria to consider |
---|---|---|
ANZ | Unsecured Personal Loan | Minimum income $15,000 p.a. Australian citizen, permanent resident or have a valid visa If you're retired but have income from other sources, need proof of income |
Bank of Melbourne | Unsecured Personal Loan | Age pension is not accepted as income Caravans cannot be used as security for the loan |
BankSA | Unsecured Personal Loan | Age pension is not accepted as income Caravans cannot be used as security for the loan |
Beyond Bank | Flexi Loan Low Rate Loan | Minimum income $2,000 per month Australian citizen or permanent resident Age of caravan will determine the rate |
CUA | Fixed Rate Car Loan | Earn a regular income Australian citizen or permanent resident Maximum age of the caravan at the end of the term is 12 years |
Latitude Financial Services | Personal Loan (Secured) | Earn a regular income Australian citizen or permanent resident Minimum 50% of caravan/campervan for personal use Maximum age of the caravan at the end of the term is 12 years |
NAB | NAB Car Loan (Variable Rate) | Caravan is a suitable loan purpose (loan is unsecured) Earn a regular income Reside in Australia: Australian citizen, permanent resident, New Zealand citizen or 457 visa Be able to afford the loan repayments |
RACQ | New Car Loan Used Car Loan | Australian citizen, permanent resident or be on an approved working visa Be able to afford the loan repayments Finance a new or used caravan |
NRMA | Car Loan | Finance a new or used caravan – new caravans over $15,000 receive a promotional rate Applications handled on case-by-case basis |
Checklist for buying a camper trailer
The "different strokes for different blokes" saying holds true even when it comes to camper trailer shopping, given that just about every camper has unique requirements. Find out what aspects need your attention:
- Chassis. The chassis of a trailer plays a crucial role in holding it together, and for increased life look for a chassis made using high-quality materials. If you plan to carry heavy loads of if you're thinking about driving off-road, look for an extra strong chassis.
- Suspension. Suspension springs should be strong enough to take the weight of the trailer as well as of the load that it carries. Make sure you pay heed to their condition at the onset, and find out if they're suitable for off-road driving.
- Tailgate and doors. Remember to check all seals, not just on the doors and the tailgate but also on all compartments and even the tool box to avoid damage from water and rust.
- Towing. The towing coupling should have enough strength to take the camper trailer's weight as well as all that it carries. For off-road driving, getting a coupling that turns 360 degrees is ideal. In addition, consider getting snatch points at the trailer's rear section.
- Protection. Camper trailers tend to flick up stones from time to time, and this can even happen on paved roads. Some trailers work in deflecting these stones by using built-in stone guards, and some come with shade cloth attachments to bridge the gap between the trailer and the car.
- Tyres. If you can manage to get the same set of tyres on your trailer as on your main vehicle you can look forward to a smoother drive.
- Trim. The canvas your camper trailer uses should be durable, given that it provides shelter, but remember that lightweight canvas is quicker and simpler to set up. Check for waterproofing and mildew-proofing of all canvas and awnings, and make sure they don't have any holes.
- Bedding. Ensure there's enough room for everyone who might use your trailer, and don't hesitate to take measurements of bedding if it looks small.
- Possible add-ons. While the list of add-ons can be very long, most camper trailers tend to include water tanks, jockey wheels, and awnings, so it makes sense to look for these in your purchase.
Frequently asked questions about caravan loans
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Ask a question
We are wanting to buy a secondhand caravan and car. What is the best type of loan?
Hi Lara,
Thanks for your question.
Please note that finder.com.au is a financial comparison service and we can’t recommend any specific loan product to our users.
I suggest that you take advantage of our loan calculator above so that you’ll know which loan type can give you low monthly repayment under your desired terms.
Cheers,
Anndy
Can this loan be used for camper trailers?
Hi Bill,
It’s best to double check before you apply, but generally you will be able to use the loans on the above page for caravans or camper trailers.
Hope this has helped,
Elizabeth
I have queried on behalf of my mum (pensioner) in regards to a loan for a second hand caravan. Due to its age (2000) we’ve been told it must be an unsecured loan where the interest rate is much higher. Yet my mum owns her own house outright. With such an asset behind her surely a secured loan would be given approval?
Is this true?
Hi Kerry,
Thanks for your question.
Some lenders will be willing to use the equity your mother holds in her house as security for the loan, this is called an equity loan and you can find out more about line of credit loans on our guide.
There are also other secured loan options you can consider. I also recommend getting in touch with a licensed mortgage broker that can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.
Before applying for a home loan, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Thanks,
Elizabeth
Would a loan be available for a second hand caravan for a pensioner?
Hi Karen,
Thanks for your question.
All of the personal loans featured on this page are available for financing a caravan. In terms of availability for your situation, you can click through and read a review of the loan (by clicking on the title of the loan) and see the minimum income required and whether the lender will finance secondhand vehicles.
I hope this has helped.
Thanks,
Elizabeth