After years of border closures and COVID restrictions, you may be excused for feeling as though you had a case of cabin fever. It’s more than possible that the moment has arrived for you and the family to start travelling again. Despite the country experiencing significant flooding and extreme weather, there are still a tonne of fantastic places to have fun and memorable caravan trip. Whether you have somewhere specific in mind, are thinking of setting yourself up for an extended stay on the coast or are setting off for your “big lap” of Australia, buying a caravan can often be more cost-effective than renting.
Buying means holidays on your terms
When you purchase a caravan, that means it’s yours outright. What happens when you usually travel? You shell out for airline tickets, hotel accommodation, restaurant food, hire cars, and other expenses. Even if you hire a caravan, you’re paying “dead” money to someone else who had the foresight to buy theirs!
Owning a caravan means you have a valuable asset that may even generate income if you decide to hire it out to friends, relatives, or via "caravan sharing" websites like CampToo or Private Caravan Hire. Every subsequent holiday you take is not only cheaper compared to flying, staying in hotels, and hiring cars at your chosen destination, any savings you make can be funnelled directly into your caravan loan.
Looking for the right caravan loan
When you’re looking for a caravan loan, you may be tempted to go to your bank. That’s hoping for the best – a bank seldom gives you the best rates on the market. If you use a dedicated leisure finance broker, you can actually apply for a caravan loan.
A broker can find a caravan loan from a wide panel of lenders, which means they are all competing for your business.
Before you apply, you should set your budget and see how much you can afford in repayments. You’ll need the loan term, amount you need to borrow, and the interest rate. If you can find the comparison rate, it makes things easier to look at loans side by side. Comparison rates show you the interest rate plus most fees – not something you’ll have to find out the hard way later.
Should you buy new or used?
Here’s the rub: a used caravan has a lower price but will cost more; a new caravan has a high price but may end up costing you less.
First example: banks and lenders are reluctant to grant loans for RVs, motorhomes, or caravans that are more aged or used. They have a larger risk than fresh purchases, thus don’t want to take on the risk – or if they do, you’re on the hook in the form of higher interest rates.
If you decide to rent out your caravan, newer caravans will fetch higher rental rates due to their contemporary safety features and comforts.
Remember to go to trade shows and try out as many caravans as you can before making a decision – because it’ll be your little hotel on wheels for many long nights out and about!
