Finty

Compare caravan loans

Set your amount and term to see the repayment and total cost of 4 caravan loans side by side, so you know what you'd pay before you apply.

Loans for buying a caravan, camper trailer or motorhome, usually secured against it. Only a few lenders publish separate caravan loans, and many people use a secured car loan or a personal loan instead.

Written byDavid Boyd

What will it cost you?

Enter how much you want to borrow and for how long, and we'll show your monthly repayment and total cost on every loan below, at each one's lowest published rate.

4 loans

Repayments use each loan's lowest published rate and include any monthly fee. The total adds the establishment fee. The rate you are offered depends on your circumstances. Comparison rates are for the lender's own example loan, usually $30,000 over 5 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

The short version

  • Caravan loans are usually secured against the caravan, like a car loan.
  • Lenders often limit how old the caravan can be.
  • Budget for insurance, registration, storage and upkeep.

Borrowing for a caravan

Caravan loans work like car loans and are usually secured against the caravan, camper trailer or motorhome. Secured loans often have lower rates, but the lender can take the caravan back if you fall behind on repayments.

Some lenders set different rates for buying from a dealer and buying privately, and some only take caravans up to a certain age. Only a few lenders publish separate caravan loans, so a secured car loan or a personal loan is often worth comparing too.

Costs beyond the loan

Caravans lose value over time, so you can owe more than it's worth if you sell early. Budget for insurance, registration, servicing, storage and the towing setup on your car as well as the repayments.

Pros

  • Lower rates. The car secures the loan, so lenders charge less than for unsecured loans.
  • Higher limits. You can usually borrow the full price of the car.
  • Long terms, which keep each repayment lower.

Cons

  • The car is at stake. The lender can repossess it if you can't keep up.
  • Rules on the car. Many lenders limit how old it can be and need comprehensive insurance.
  • Caravans lose value, so a long loan can outlast much of the van's worth.

Alternatives

  • An unsecured personal loan. Nothing is secured against the car, so you can buy any car, at any age, though the rate is usually higher.
  • Redraw or a top up on your home loan, which can have a lower rate but is paid off over longer.
  • Saving and buying a cheaper car outright. No interest, no repayments, and no lender's conditions on the car.

How to apply

You can apply for a caravan loan before you've chosen the car. Pre-approval tells you your budget and lets you bargain like a cash buyer.

  • Get pre-approval. Many lenders approve you for an amount first, so you know what you can spend before you shop.
  • Check your rate. Some lenders give a quote with a soft check, which doesn't show as a credit enquiry.
  • Have the car's details ready. Lenders need the make, model, year, VIN and the seller's details before they pay out.
  • Compare the drive away price, not just the rate. A low rate can come with a higher price on the car.
  • Insure the car. Lenders usually need comprehensive insurance on a car that secures the loan.

What to check on a caravan loan

Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.

  • Whether there's a balloon payment, a lump sum left to pay at the end that lowers your regular repayments.
  • Any limit on the caravan's age, either when you buy it or when the loan ends.
  • Whether you can make extra repayments or pay the loan off early, and what that costs.
  • Whether the lender pays the dealer or private seller directly.

Questions people ask

What is car loan pre-approval?

It's a lender's conditional OK for an amount before you've chosen the car. It isn't final until the lender has the car's details, and it usually lasts for a few months.

Can I pay off a car loan early?

Usually. Variable rate loans rarely charge for it, while fixed rate loans may charge an early repayment fee. Check the contract if you might sell the car or pay it off sooner.

Should I take a balloon payment?

A balloon lowers each repayment by leaving a lump sum to pay at the end, but you pay more interest overall and need the money, or to refinance, when it falls due. It suits people who plan to sell or trade in the car then.