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Five Things to Know About Loans for Caravans and Campers

May 10, 2022 | Finance Tips

Caravanning, camping and road-tripping is an Aussie way of life, with more and more Australians keen to explore our island continent thanks to disrupted international travel. 

If you want to get out and about soon, but can’t wait to save up the funds to buy a recreational vehicle outright, then caravan finance could be the solution to get you there.

Before you get finance to head into the great unknown, here are the five things you should know about loans for caravans and campers.

1. Loans for Caravans are accessible, even if you have bad credit

At Finance One, the eligibility criteria for loan applicants are geared towards those with less than desirable credit histories. We take a compassionate approach when it comes to our lending criteria, and therefore we can offer finance to those who are receiving Centrelink benefits, have been discharged from bankruptcy or who have a poor credit score.

Our Loans for Caravans with Bad Credit have helped many Aussies purchase their dream caravan for their caravan holiday.

Provided you are over the age of 18, are a permanent resident and have a regular income, even if you have suffered a credit injury previously, we will consider your application — unlike some major lenders.Apply for Caravan Finance

2. Interest rates vary

When researching your caravan finance options, it’s easy to rely on the most attractive loan in terms of comparison rate. The loan application process, however, impacts what interest rate you’re likely to pay on your caravan finance. Similar to car loans and other vehicle loans, comparison rates are mostly good for determining the true cost of the loan concerning interest rates and monthly account keeping fees and charges. However, it generally won’t take into account early termination fees, fee waivers, redraw fees and other ongoing fees. The only way to assess what interest rate will apply to your personal application is to speak to a lender directly.

We are proud to offer competitive rates when it comes to our caravan and camper trailer finance.

3. Your caravan finance term options

When it comes to loan amounts, Finance One offer loans for caravans and camper trailers between $5,000 – $75,000*. The loan terms range between three to seven years, and of course, your minimum repayment is set based on the loan term and loan amount.

As with most loan types, including a personal loan, you often have the choice between a variable interest rate or fixed rate when you apply for caravan finance.

Fixed interest rate A fixed interest rate is agreed upon at the start of your loan and remains the same over the loan’s entire life. This means any rise in interest rates over the term of your loan term are not passed onto you, but it also means that any reduction in interest rates are also not passed onto you. Fixed interest loans can be a good option for those who like the predictability of their monthly repayment or who like to budget.
Variable rate loan On the other hand, a loan with a variable rate has a varying rate of interest over the loan’s lifespan. This could mean paying slightly higher, or slightly lower interest than at the start of your loan — depending on what happens with the Reserve Bank of Australia and whether your lender passes rate cuts or hikes onto you.
Secured loan A Secured Loan for a Caravan means that your caravan can be repossessed by your loan provider if you were to ever default on the loan. A secured loan provides more security to your lender which is often reflected by them offering you a lower rate of interest. Secured loans are a great way to keep the cost of your loan down. We offer secured loans as part of our caravan finance options.
Unsecured loans An unsecured loan is slightly more risky for your caravan finance lender as it doesn’t provide as much of a ‘fall back’ if you were to default on your loan. As an example, personal loans are often unsecured loans because there is no asset to secure the personal loan against. An unsecured loan including an unsecured personal loan, usually comes with a higher interest rate because of the slightly higher risk to the lender, as they have no security should you ever default.

4. Understand your monthly repayments

Early repayment fees can set you back in the future, particularly if you’re wanting to pay down the loan sooner than anticipated. This is why at Finance One, we offer flexible repayment options to help you get into your own caravan, and own it sooner.

Flexible repayments aren’t offered with every loan, so our best advice is to consider whether you can live without the flexibility of extra loan repayments. 

Finance One makes extra repayments a breeze with our adaptable monthly repayments, allowing you to make additional payments on your loan, how and when it suits you. We don’t charge an early termination fee to do so.

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5. Remain mindful of extras and options

Before you sign your loan offer, make sure that your loan amount covers everything that you need to get you into your van. New caravans are often sold at a bare basic level and you need to add options which can include bedding, kitchen items like ovens and sinks, bathroom, furniture and more. Setting up your caravan can add up, so make sure you’ve applied for enough funds to satisfy your caravan purchase.

If you’re looking at a used caravan, then determining what modifications (if any) are required to make sure that it meets your and your family’s needs, can be important.

Caravan purchases should not be taken lightly – there are big decisions to be made in order for big adventures to be had. New and used vehicles such as campervans, camper trailers, caravans and motorhomes make for brilliant memories. 

Contact Us

Let us be part of your family’s history by looking past your credit history and helping you apply to get into your dream caravan with one of our caravan finance options.

Apply online today or contact us to find out more.

Apply for Caravan Finance
*Loans between $50,000 – $75,000 must be asset backed. Normal lending criteria, terms and conditions, fees and charges apply. Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances.  We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All new loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.

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Makala Elliott

Makala is the Marketing Manager at Finance One. She has worked in the Finance and Lending industry for over 10 years, gathering a wealth of experience. She is passionate about helping Australians get back on track with their finances by passing on her knowledge.

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