FAQ

ASIC is the body responsible for consumer finance and it sets out the requirements for lending applications and the guidelines by which licensed, responsible lenders must adhere when arranging consumer loans. Applicants must be over the age of 18 years, have ID, and have a job or source of income. The application process will also require applicants to produce a range of financial documents and other personal information in regard to their residential status and history, assets, and liabilities. All other debts including credit cards need to be disclosed. A driving licence is not an essential requirement. All applications are assessed individually by lenders and should additional information or clarification be required, it will be requested at the time of application.

Yes. No deposit loans refer to no deposit being requested to be paid to the lender. This is different from down payments or holding deposits requested by the dealer. They are usually requested to hold the vehicle while the buyer arranges their lending or while the dealer prepares the vehicle for delivery. No deposits include the complete purchase price of the goods. This can be just the price or may include additional extras such as optional upgrades, accessories packages, and similar items. Where the dealer includes the vehicle registration in the invoiced price, this could also be included in the loan amount.

Yes. Consumer loans, both secured and unsecured, allow the option for extra amounts on top of the scheduled monthly repayments to be made as desired by the borrower. As interest is charged on consumer loans on a daily basis, making additional payments can reduce the total interest payable. It will also reduce the term that is the time to pay off the entire finances. That is known as paying out the lending early and does attract break fees for fixed interest rates. These are considered minimal and contact with the lender will reveal the exact amount payable. It will vary with the time outstanding on the finances.

Buyers have a number of lending options. Different loans are available for private and business buyers. Personal buyers can choose a secured or an unsecured. The Secured Loan is the most popular and it follows a widely accepted format. The goods are used as security against lending by the lender and the borrower repays in equal monthly instalments over the fixed term. Where the goods are not suited to be offered as security the unsecured personal financing is available. This may be at a fixed or variable interest rate and has a fixed term and fixed repayments. Business buyers can select from a number of commercial finance facilities including leasing and Chattel Mortgage. The benefits of each are considered in relation to individual business financial objectives.

Finance is provided for motorhomes which are used for recreation and travel purposes, not as a permanent residence. If you intend to reside permanently in your motorhome and it is your only residence, then the loans a Secured Caravan Loan would not be suitable. Your loan application would not meet the criteria of the lenders. If you use your motorhome for extended travel and still maintain a separate residence, then you should meet the caravan loan criteria. Often people use motorhomes and other types of caravans as short-term accommodation while building a home or when a home is being repaired after occurrences such as bush fires. In these examples, the home being built or repaired should be considered as the permanent residence, and under this assumption, the loan request should be eligible.

In most cases, yes. Lending can be offered to cover the full purchase price of most motorhomes, subject to meeting individual lender guidelines around minimum and maximum loan amounts and other conditions. A loan for the full purchase price is commonly referred to as no deposit finance. This infers that the borrower does not have to pay a deposit for their motorhome and can borrow 100% of the purchase price. Separately to dealings with lenders, sellers may request that borrowers pay a deposit to hold the vehicle and especially if the motorhome is to be custom-built or built-to-order. This type of deposit may be included in the total loan amount when the loan is settled and as such returned to the borrower. In most cases, the lender will not request that the borrower make a deposit for their purchase. There of course can be exceptions as each motorhome finance application is addressed by lenders on an individual basis.

A loan for a motorhome is considered as caravan finance not a car loan. While a motorhome does come as a complete vehicle with engine and other car-related features, it is seen primarily as a recreational and travel vehicle rather than a passenger vehicle. If your question relates to the pricing and interest rates of a car loans compared with caravan finance, you need to refer to rates for caravan finance.

Not specifically but certain aspects around the actual motorhome may have an impact on the loan offered. Manufacturers offer a significant size range in the motorhome category. The price of a new motorhome usually increases with the size of the vehicle and that usually impacts the total loan amount and often the loan term requested. However, the interest rate should not change according to the size of the motorhome. The interest rate offered is determined primarily by the credit profile and details of the applicant. The purchase price or loan amount requested needs to be within the minimum and maximum loan limits of our individual lenders to be eligible for a caravan loan. The quickest and easiest way to see different repayment estimates for different sizes of motorhomes is to use a repayments calculator.