Caravan finance allows you to reduce your upfront cash outlay, freeing up funds for other needs. For businesses, it can help improve cash flow and may offer tax benefits (consult your accountant for details).

Caravan finance also provides flexibility, giving the buyer a wider range of purchasing options without the full payment upfront. Additionally, it often comes with fixed interest rates and predictable repayments, helping you manage your budget more effectively. Some options even allow for balloon payments, giving you extra financial flexibility.

New caravan finance often provides lower interest rates and longer loan terms because the caravan is brand new and retains a higher value.

In contrast, used caravan finance may come with slightly higher interest rates and shorter loan terms, reflecting the depreciation of the asset.

However, both new and used caravan finance options offer flexible repayment structures and can be tailored to fit your budget and financial needs.

A pre-approval is an initial evaluation performed by a lender to assess your eligibility for a loan and determine the amount you may qualify to borrow. This process usually requires you to submit an application, provide documentation such as income verification and credit history, and undergo a credit check.

Obtaining a pre-approval gives you a clearer picture of your budget while searching for a caravan, as it indicates the maximum amount the lender is willing to extend under specific conditions. However, it’s important to remember that a pre-approval does not constitute a final commitment for a caravan loan; rather indicates that a lender is willing to lend you a certain amount based on your financial situation, but it is not a guarantee of the final loan approval. The final commitment will depend on further verification and approval processes. 

The amount of caravan finance you may qualify for is influenced by several factors, including your:

- Income

- Credit history

- Existing debts

- The vehicle's appraised value. 

Lenders evaluate your repayment capacity by analysing your financial profile and applying lending limits based on a percentage of the caravan's worth.

For a clearer understanding of your borrowing potential, please use our serviceability calculator . To explore a variety of rates and repayment options, we invite you to visit our online quote tool. Alternatively, you may wish to consult with one of our Australian-based brokers today by requesting a callback or by calling 1300 787 288.

With a multitude of lenders to choose from, it can be tricky to navigate and find the best option that works for you. That’s why we aim to match you with an expert finance broker who will take the time to understand what you’d like to buy, as well as your personal details, work history, income, and expenses, to create a tailored preliminary assessment for your caravan finance. They will then present options tailored to your budget and financial goals

Residual values and balloon payments refer to lump sums due at the end of a caravan finance agreement. A residual value, commonly used in leases, indicates the estimated market value of the caravan at the lease's conclusion. In contrast, a balloon payment applies to caravan loans, enabling borrowers to lower their monthly repayments by deferring part of the loan balance to the end of the term. While both options reduce regular payment amounts, they require a larger sum at maturity, which can be paid off, refinanced, or managed through a trade-in of the vehicle.

We're well aware of the tried and tested tactics to get the best price on your new caravan, motorhome or camper trailer. Below is a summary that will help you breeze through the purchasing process and beyond:

●       Choose the right type of caravan for your needs

●       Do plenty of research

●       Understand when is the best time to buy

●       Be prepped and ready for the negotiation process (we have essential negotiating tips)

●       Ensure you have your finance pre-approved