A decision to enjoy your next holiday to the fullest is not a wrong choice. It is a great choice that you have decided to explore Australia by road. However, one piece that you will need to complete the jigsaw is a caravan. Unfortunately, this may sound discouraging due to the high cost of purchase that it accrues. Well, you can bypass this financial difficulty with caravan finance. Caravan finance is a financial option that allows you to obtain the purchase sum of the caravan or the caravan with no initial lump sum payment. You then commit to the repayment of the purchase price over a specific period in a particular manner. With this option, you can spread the repayment over a long duration. Then repay at your convenience. Usually, this finance comes with an interest obligation—one which you spread throughout the finance agreement.

Available Finance Options

If you’re looking to obtain caravan financing, there are various options that you can take advantage of. Typically, they include:

Consumer Loan

A viable finance option to finance your campervan or caravan purchase is a consumer loan. It allows you to finance your purchase conveniently and with full flexibility. It is widely considered a secured loan, and this is because it requires you to use your caravan as security during the loan agreement.

In most cases, thanks to its nature, you obtain a lower interest rate and a more flexible repayment option compared to other options.

When you opt for a consumer loan, you receive the actual purchase price for the loan from your lender. That is, the cost of the camper van or caravan you want to purchase.

Then, after receiving the funds, your lender gets a concurrent mortgage interest in the caravan you purchase. Then, after full payment, you automatically remove the claim.

Going with a consumer loan comes with additional benefits for your caravan purchase. They include:

  • Lower interest rates due to the security attached to the loan agreement and reduced risk
  • Fixed interest rates
  • Long term payment reaching as much as seven years

Personal Loan

Another great way to finance your caravan purchase is through the use of a personal loan. In this instance, you do not need to provide a form of security for the loan. You merely request and where you qualify you to receive the required financing.

This method is relatively easy compared to the consumer loan option. It allows you to reach out and transform your holiday dreams to reality conveniently.

When you opt for a personal loan, you receive actual purchase price for the caravan from your lender. Typically, once you reach an agreement with the lender, your lender provides the purchase price. Afterwards, you can proceed to make the necessary caravan purchase.

In this instance, you also get full ownership from the beginning of the whole process. There is also no lien attached to the caravan or campervan purchase.

Going with a personal loan comes with additional benefits for your caravan purchase. They include:

  • Long term payment reaching as much as seven years
  • Flexible loan term and repayment structure
  • Fixed interest rates

Caravan Finance Calculator

It is time to stop asking whether you can finance the purchase of your caravan. Now you need to take action with a finance calculator.

A caravan finance calculator is a tool that allows you to determine your repayment obligation. This is usually based on your intended loan amount, repayment duration, and interest rate. With it, you can understand whether or not you can afford a purchase.

However, have it in mind that it merely provides an estimate. As such, you will need to get a direct quote from your lender.

Frequently Asked Questions About Caravan Finance

Here are the answers to some questions that you might have as you navigate through caravan financing

What are the Available Caravan Finance Options?

Various finance options exist, depending on your proposed usage. You can utilise a personal loan or consumer loan for your financing. You can also maximise specific financing options such as a chattel mortgage, hire purchase, and finance leasing.

What Are the Major Features of a Caravan Loan?

Typically, a caravan loan takes into consideration your specific financial situations. It then provides financing based on these needs and allows you to repay flexibly. You can also enjoy early repayment option depending on your lender.

What Are the Available Lenders?

There are various lenders available within the Australian market, and each offers different rates and terms. As such, it is best to ensure you compare the available options before choosing your preferred lender.