Caravans are available in a range of different types - traditional, off-road, hybrid, toy haulers, TVs, mobile homes, camper trailers etc – with buyers faced with multiple options in making that final decision. There are also considerations and decisions to be made around sourcing the cheapest and most appropriate caravan loans to purchase your leisure goods.
We provide a full selection of loan options for both private buyers and business purchases. While all types of caravans can be financed, the choice of loan will depend on the buyer profile and primarily, the interest rate achievable on the loan. We provide an overview of the choices in caravan finance for both buyer categories.
Private Buyers – Different Consumer Finance for Caravans
For people buying caravans for personal travel and holiday purposes, there are two consumer loans available:
- Secured Caravan Loan: The most commonly used type of loan with a standard secured loan format. The RV is used as security for the lender but the borrower takes ownership immediately and is responsible for all costs such as rego, insurance and ongoing maintenance. We established this type of loan at a cheap fixed interest rate over a fixed term which provides the borrower with a set, fixed monthly repayment. Extra payments are permitted with minimal break fees applicable in the event that the loan is finalised early.
- Unsecured Personal Loan: In situations where the caravan is not available to be used as security, it is not accepted as security by the lender, or the borrower chooses not to offer the caravan as security, this type of loan may suit the purchase. As there is no security a higher interest rate applies compared with a secured loan and the rate may be at a fixed or variable rate. Our consultants will discuss these options with you. The loan term is fixed as are monthly repayments and in most cases, no break fees apply if the loan is paid out early.
Different lenders offer different types of loan specifications for caravan purchases. Not all will be specifically designated as a caravan loan, but possibly a generic secured personal loan. We have compiled a table of loan types available from a selection of banks and lenders which you can review.
Business Buyers: Commercial Caravan Chattel Mortgage
For those purchasing a caravan or other RV to use in their business operations, the Caravan Chattel Mortgage is one of the most commonly utilised finance products. The Chattel Mortgage is a very versatile type of finance and is widely used for all types of business assets including motor vehicles, plant, machinery, equipment, boats and trucks.
The same features apply, regardless of the asset being acquired:
- Attracts the lowest interest rate across the range of commercial finance facilities.
- Ownership is taken by the borrower at the time of purchase while the lender accepts the caravan as security against the finance.
- The GST on the purchase price can be claimed on the next BAS, for eligible businesses.
- No GST applies to the interest portion.
- The interest portion of repayments is tax deductible but the remainder of the repayment is not tax-deductible.
- A tax deduction is realised when the caravan is depreciated in the annual income tax return according to the ATO rulings at the time.
- Suited to accelerated asset depreciation measures including temporary full expensing and Instant Asset Write-off
- Suits businesses that use the cash method of accounting.
- Interest rate is fixed, loan term fixed and fixed monthly repayments apply.
- A balloon amount is optional.
All types of businesses – partnerships, sole traders, family enterprises, SMEs, large corporates and others, can apply for Caravan Chattel Mortgages.
Loans on Caravans: Bad Credit Applicants
Credit issues can impact all types of people and businesses due to a myriad of circumstances. But contrary to commonly-held beliefs, bad credit is not a complete barrier to achieving a caravan loan. We are accredited with non-bank lenders that will consider bad credit caravan loan applications and are flexible and prepared to offer attractive loan terms and rates.
Individual lenders will review the circumstances around the poor credit rating in assessing each application. As every application for credit is reported to Credit Reporting Agencies and listed on a credit report, bad credit applicants can benefit significantly by allowing lenders such as Jade to handle their finance requirements.
Finance on Caravans: Best Interest Rate Comparisons
The interest rate is at the heart of every finance deal and usually top of mind for everyone seeking caravan finance. Individual lenders set their interest rates based on their interest in lending to particular sectors.
To save you time in reviewing what’s available in caravan loan interest rates, we’ve prepared an easy reference guide. Use our free online caravan loan interest rates tool to compare across a number of banks and lenders Australia wide.
Repayment Calculator for Financing on Caravans
Knowing what your estimated repayments may be on a loan can be a great help when deciding between differently priced makes and models. We make that easy with our caravan finance calculator.
Simply enter the details of your proposed loan and the calculator does the complex arithmetic calculations to display an estimated repayment. We offer no deposit finance on many loans so you can enter the full purchase price of the loan in the total loan amount requested.
Making the Right Caravan Finance Choice
Now you have the options, how do you make the choice of which loan is best for you? Businesses are always advised to consult their consultants. For private buyers, the age and condition of the caravan will likely determine suitability for a secured or unsecured loan. Our consultants can assist with that aspect.
Get in contact with us at 1300 000 003 to discuss your lending options.
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.