Caravan Loans

Review and compare caravan loan options.

Getting a caravan loan is a great way to get the money you need to purchase a caravan. Always make sure to compare the loans different brands will offer you. People have been travelling Australia in caravans for as long as caravans have been around. They’re also a great choice for a family holiday. You might be considering buying your own caravan, either for a family holiday or as a way to travel around the country after retiring. A caravan loan is a loan that is designed specifically to be used to purchase a caravan. You receive a sum of money from a financial provider. You use this money to buy the caravan and then you pay it back over a period of time. Taking out a caravan loan means you have the money when you need it.

 

How do caravan loans work?

A caravan loan works much the same way as any other kind of loan. There are different features on offer with these loans with each loan provider having different kinds of loans on offer. Some caravan loans come with fixed rate interest rates. These ensure that your monthly repayment stays the same for the entire duration of the loan. There are also loans with variable interest rates. With these loans the interest rate can go down, leading to cheaper repayments, but it can also go up. You can also get your hands on a secured or unsecured loan depending on if you want to secure the loan using an asset; typically the caravan you purchase with the loan. Each brand offers their own different loans so compare your caravan loan options to find the right one for you.

 

How to compare caravan loans and find the right one for you

What is the interest rate?

The interest rates on caravan loans tend to be quite competitive but you should still let the interest rate be the main comparison point between loans. The right interest rate can really save you a great deal of money in the long run. Decide if you want a fixed rate loan or a variable rate loan and use that as a starting point.

Is the loan secured or unsecured?

A caravan loan can be either secured or unsecured. An unsecured loan is less risky to you but they come with higher fees to compensate. Decide on if you want to have a secured or unsecured loan and work from there using fees and charges.

Is repayment flexible?

While it’s true that many different caravan loans have flexible repayment options there are some loans that are better than others. Some lenders allow fortnightly or monthly repayments using BPAY or direct debit so pick a loan that has convenient repayment options for you.

How long will the loan last?

The term length of a caravan loan depends on the lender you’re working with. The loan term length is also affected by the amount of money that you are borrowing. So you should get a good idea of how long you’ll be paying off the loan for before agreeing to one.

 

The good to go for and the bad to avoid

Good

  • Meeting the loan criteria could lead to fast approval: It’s usually a quick and easy process to apply for a caravan loan and you can do it online. If you meet their criteria then your loan can be processed pretty quickly. Some caravan loan lenders can even approve your loan and get you the money in a matter of hours.
  • Competitive interest rates: Caravan loans usually come with competitive interest rates. A low interest rate is usually better.
  • You get money when you need it: Of course the biggest advantage of a caravan loan is that you have the money ready for your caravan purchase when you need it. When you get a loan specifically for purchasing a caravan then you can be sure that you’re getting a specialised loan service.

Bad

  • Hidden fees and charges: One downside of caravan loans is that they usually come with fees and charges. They aren’t too high however and will cost you the same as any other loan. Always check to see what fees and charges the loan has including early repayment fees.

What to avoid

  • Never borrow more than you can afford: It’s important that you never borrow more than you can reasonably afford to repay when taking out a caravan loan, or indeed any loan. You should avoid finding yourself in debt or with bad credit. If you’re currently paying back debt then you shouldn’t take out another loan. Try and find a different financing option first. You should never rely on borrowing money and doing so is the fastest way to a bad situation.
  • Read the small print to avoid nasty surprises: Every loan is a contract you have to sign and a caravan loan is no different. Read through the loan agreement carefully including all small print. That way you can avoid being hit with a nasty surprise such as an unexpected charge.

What kinds of caravans can be bought with a caravan loan

Travelling in a caravan is a great way to get around, provided the road isn’t too bumpy. You can find a caravan that’s right for you no matter what you need it for. Travelling with the family? Travelling alone? Fancy a road trip with your partner? It’s all possible with a caravan. The following is a look at the different caravans they are and what you need to drive one. This way you can pick the right caravan for you.

Full Caravan

A full caravan is what people think of when they think of caravans. They have full height roofs and solid walls. They don’t need to be set up or packed away. They come in different shapes and sizes with single-axle smaller options and double-axle larger caravans. Most people opt for a full caravan because they are convenient and are always ready to go. They also come with plenty of storage space and protect you from harsh environments. They also have plenty of amenities. A full caravan can be equipped with central heating, air condition, kitchenettes and even entertainment systems.

Pop Top/Pop-Out Caravans

If you want to have a smaller caravan when travelling but still have a larger caravan for your holiday then a pop top caravan, also called a pop out caravan, is the choice for you. They look small from the outside but they have sections you can pop out to create more space when you get settled. Some pop from the side while others pop from the top to create a full height caravan.

Travelling with a caravan like this also gives you a clear view of what the road and traffic is like behind you. You still get the comfort and luxury of space when you settle down too. They are smaller than a regular caravan, lighter, and even more aerodynamic. This means that it costs less in fuel to transport one. The only problem is that there is less space when you’re driving, which can be a drawback if you rely on the caravan for storage space.

Wind-up and out caravans

Imagine what it would look like if a camper trailer turned into a caravan and you have a wind-up caravan. It extends much like a pop-up caravan does but the pops create far more space. They have all the benefits of a pop top caravan but because there is more space it can take longer to set them up or take them down.

Teardrop trailers

Teardrop trailers are pretty popular because of how easy it is to tow one. They can be towed using a sports car, a small classic car, or even a trike. They are the best choice for people travelling light and they come with basic bedding and cooking equipment.

Fifth Wheeler Caravans

Fifth wheeler caravans are usually larger than full caravans. They also tend to be more luxurious and can be considered almost a mobile home. Fifth wheeler caravans use real furniture in place of the fixtures that caravans usually use. As a result of their size they don’t have the caravan hitch you find on regular caravans. They are towed using a towing connection attached to the bed and it takes a pickup truck or a ute to tow one properly. One drawback to these caravans is that they classified as being Big Rigs. As a result you may not be able to take one to the campsite you want or one of the roads you need to take to get there. If you use a fifth wheeler caravan then plan your trip well ahead of time.

RV or motorhome

An RV (recreational vehicle) is just another word for a motorhome. An RV iss basically a caravan that can be driven. Motorhomes don’t need to be set up at all. Just pick up your keys and drive off when you’re ready to go. Some RVs also have pop-out space like a caravan. They also come with different equipment and fixtures. One problem with RVs is that their size can make it hard to get around and sightsee. One way around this is using your RV to tow a small car for short journeys but you might decide that’s not worth it.

 

The elements of purchasing a camper trailer

Remember that different people like different things. This holds true to buying a trailer as each camper will have unique requirements. When a family stays in a caravan park then what they need tends to be a lot different than someone who wants to do some off-road driving. Some aspects of the trailer need to be considered no matter the make or model that you’re looking for. Whether you are buying a new caravan, a second-hand one, or even a custom made one, here are things you can’t afford to ignore.

Chassis

The chassis in a trailer is just as important as the chassis in a car. It’s what holds everything together. The chassis needs to be a high quality one if you want your trailer to last a long time. If you’re thinking about going off-road or you know you’ll be bringing a lot of stuff along then invest in an extra-strong chassis.

Suspension

The suspension springs need to be strong so that they can absorb the weight of both the trailer and the weight of what you’re packing into it. Take a look at the suspension and enquire about how tough it is, as well as if it can handle off-road driving.

Tailgate and doors

You need to do a thorough check on all the seats as well as on the doors and the tailgate. You should also check all the compartments and even the tool box to make sure that no part of your RV is, or will, suffer from water damage and rust.

Towing

You need to make sure that the towing coupling is pretty sturdy. It needs to take the weight of not just the caravan but also the car you’re using to tow it. If you plan on going off-road then you need to get a coupling that is capable of 360 degree turns. You should also consider investing in snatch points at the rear section of the trailer.

Protection

Camper trailers are notorious for flicking up stones as you drive. It can happen when you’re travelling on a paved road too. Some trailers have built in stone guards to protect themselves from damage from these stones. Others come with shad cloth attachments that bridge the gap between the car and trailer to protect everything.

Tyres

When buying a trailer you should try to find a trailer that uses the same tyres as your car. It makes everything go much smoother.

Trim

The canvas on your camper trailer needs to be durable and tough. It’s there to shelter you from the environment around you. Also keep in mind that a lightweight canvas is much easier to set up though. Check your awnings and canvas for holes and buy canvas that is waterproof and resistant to mildew.

Bedding

Of course you should remember to get a caravan that has enough room for everyone who is going to be staying in it. Don’t be afraid to measure the bedding if you feel that it’s a little too small.

Add-ons

Caravans can have a lot of add-ons built in and thrown on. The list might be pretty long but there are a few things you might want to consider essentials. This includes water tanks, jockey wheels, and awnings. Try and find a caravan that comes with these, along with any other optional add-ons you’re interested in.

 

How to start applying for a caravan loan

If it sounds like a caravan loan is a good idea for you then the good news is that it’s easy to get one. Just find the right loan for you by comparing your options and click the “Go to Site” button to be taken to the online application form. They are easy to fill in so you shouldn’t have any trouble. Submit your form when you’re done and wait for the lender to get back to you.

 

If you want to take out a caravan loan then you need to be at least 18 years of age. You should also have a good credit rating and be able to provide evidence of this. You may need to present bank statements, payslips, and information about any other credit contracts you have. Some lenders may only lend you money if you’re already a customer of theirs and are a permanent Australian citizen/resident.

 

The documents you need to apply for a caravan loan

You’ll find your application goes by much smoother when you have the necessary documents at hand ready. When you’re ready to submit your loan application have the following documents ready:

  • Driver’s license and or Medicare number
  • Payslips or other proof of income
  • Confirmation of your address

 

How much can I borrow for my caravan loan?

How much you can borrow and how much you’ll pay back depends entirely on your circumstances and chosen lender.

commonly asked questions

Caravans are usually exempt from stamp duty but you should check with your Office of State Revenue as caravans may not be exempt in your state.

Many lenders will offer pre-approval for your caravan loan yes. This pre-approval helps you get a good bargain with the sales manager when you’re buying your caravan.