If you’re unable to purchase the caravan you want outright, a secured caravan loan can often be used to fund your purchase. You’ll borrow part or all of the money needed, and then repay the loan amount - plus interest - over a fixed term.
It’s important to shop around for the best deal, just like you do when trying to find the best deal on the caravan.
Most lenders in Australia will offer loans suitable for caravan purchases, including banks, brokers, dealerships, and online lenders. Each lender has its own pros and cons, so to help you find the most suitable loan, we’ve had a closer look at each caravan loan provider below.
Banks are a popular option for financing a caravan purchase because you probably have an existing relationship with your bank, which can help streamline the application and approval process. Many banks offer discounted interest rates and fees to existing customers. Check if you’re eligible for any discounts before applying with your bank.
There are often strict credit policies and a thorough application process that make it difficult to be approved if you have bad credit,.. Make sure you compare your bank's offer to other lenders to make sure you are getting the best deal.
Vehicle finance brokers are intermediaries who secure vehicle finance from lenders for their clients. Usually, they’re paid a commission by lenders, although some brokers may also charge clients a fee. A good vehicle finance broker will offer impartial advice on a range of caravan finance products and advise you which is most suitable.
They also assist you in submitting your application to ensure you meet a lender’s approval criteria. Caravan loan offers from brokers can allow you to review and select from a range of the most suitable loans.
Many caravan dealerships that will offer finance as well. These loans are convenient and include an easy application process - you can generally apply at the dealership when you purchase your vehicle.
Caravan loans from a vehicle dealership may have higher rates of interest and fees. Your dealership may offer you finance as part of the sales process. Don’t accept the offer straight away just because it’s easy, shop around and compare all your options first to make sure you’re getting a good deal.
Online lenders are becoming increasingly popular with their fast approval times, low fees, and simple online applications. These offers can easily be compared with a website like Money.com.au Many Aussie online lenders offer secured vehicle loans specifically for caravan purchases.
Caravan loans from these lenders may have same-day approval and online applications, with flexible repayment terms and the ability to make fee-free early repayments. They usually have interest rates based on your credit history, so you could get a really good rate if you have good credit, are more willing to loan to customers with bad credit and they have shorter terms than traditional lenders.
The Next Steps
If you need help choosing your first caravan or are thinking about upgrading your existing one, check out the boats available on TradeRVs today.
The sellers will be happy to help and answer any inquiries you may have about the products advertised for sale.