FAQ

In general finance is available for all types of caravans and recreational vehicles under the broad umbrella caravan category of vehicles. This includes traditional caravans, off road and semi off road caravans, camper trailers, mobile homes, RVs, pop-tops and slide-outs and slide-ons. Loans can be sourced for both new and used leisure goods but some lenders will have conditions around offering loans for caravans depending on the age of the vehicle. The Secured Caravan Loan is the most popular form of finance and suits most applicants and most caravans. For caravans that do not meet the lender requirements for a secured loan, you can request a quote for an Unsecured Personal Loan for your purchase.

Lenders will consider the age and in some cases the condition of a used caravan when assessing a loan application. For new caravan purchases, the Secured Loan is the most commonly used loan and suits most applicants. Lenders will have a threshold for the age of used goods that they will finance. This may be around 12 – 15 years but will vary from lender to lender. For those purchasing a used van which is outside the age threshold for a secured loan, an Unsecured Personal Loan may be an option.

With a Secured Loan the leisure goods is offered as security against the loan. The borrower repays the loan in monthly instalments and when the loan is finalised, the lender releases the security against the loan. If the borrower defaults on their payments, the lender has the right to repossess the goods. With an Unsecured Personal Loan, there is no security against the loan. As there is no security, the interest rate on this type of loan is higher than for a secured loan and additional conditions may be applied by the lender. The lender may request additional security from the buyer in the form of other property, goods, assets or personal guarantee for unsecured loans.

Applying for caravan finance is a straight forward process in accordance with the consumer credit laws. You can apply over the phone or you can apply via an online application form. You will need to provide documents and details in regard to proof of your identity, employment or other income sources, income and outgoings, residential details, other loans debts including credit cards, assets and property you own, details of the caravan you intend to buy and other aspects. You will need to sign a consent form which gives us authority to seek finance on your behalf. Personal caravan financing is regarded as consumer credit and ASIC have guidelines that licensed credit provider must adhere to.

The loan term offered to individual loan applicants will depend on a number factors but in general, loan terms range from 2- 7 years. Individual lenders will have conditions around loan terms based on their risk assessment of the applicant, the loan amount being requested and specifics of the caravan. Longer terms can be achieved on new caravans compared with used caravans. In discussion with a broker or lender, you can advise of your preference for loan term.

Banks and lenders will advertise a general interest rate on their website and that rate varies over time depending on general lending conditions in the finance sector. It should be used as a guide only as each application is assessed individually by lenders when offering a quote. The interest rate offered for individual caravan loan applicants will vary based on the individuals credit profile and application details. The rate you are offered may be in line with the rates currently advertised or it may be higher. Interest rates on unsecured loans will generally be higher than the rate for secured loans.

Yes, both Secured Loans and Unsecured Personal Loans used to buy a caravan, allow borrowers to make extra payments. Additional payments may be made regularly or on a one-off basis. The issue to consider if you choose to make additional payments while maintaining your scheduled repayments is that you will pay off your loan earlier than the fixed loan term. When a loan is paid out early, break fees apply. For Secured and Unsecured Loans on a fixed interest rate, the break fees are minimal. For Unsecured Loans with a variable interest rate, there are no break fees normally. The break fees that apply to your specific loan can be advised at the time the loan contract is arranged. Alternatively you can contact your lender for details. If you do consider you will want to make additional payments, you may like to consider increasing the repayments at the start of the loan. That way you will pay off the loan earlier, incur less interest overall and not incur break fees.

When you approach sourcing a caravan loan yourself, you will be limited to those lenders that are available to consumers and offering caravan finance. Some major banks offer personal loans for caravans and a raft of finance companies also. But you will usually be offered the standard interest rate and need to meet their strict conditions. In contrast, finance brokers are accredited with a large number of banks and non-bank lenders. Many of our lenders only work with brokers and they are more amenable to being flexible and negotiating on interest rates and conditions. Brokers may have significant bargaining power in which enables them to achieve better interest rates which are individually negotiated for each of our customers.