Caravans are increasing in popularity for holidays, for alternative accommodation during home renovations and building work and for post-retirement adventures. Some people are using RVs to travel permanently around Australia and come as their permanent home to reduce their carbon footprint. Businesses also utilise caravans and RVs as remote offices and accommodation for workers carrying out work in remote areas.
Caravans, campers, RVs and mobile homes are a great way to live and vacation. But sourcing a caravan loan can sometimes seem like a journey too far. It doesn’t have to be. We give you information on what loans are available to both individuals and businesses to finance their caravan purchase and hints and tips on getting the best loan deal.
When buying a caravan for your own personal use, you will be offered one of 2 main options:
For caravan and holiday park operators buying on-site vans and for businesses that need a mobile home, RV or caravan for work off-site, a range of commercial finance products are available:
It is recommended that you discuss which is best suited to your individual business with your accountant as there are variations in tax deductible elements, the application of GST, depreciation and suitability to either cash or accruals accounting methods.
What each finance type does have in common is a fixed interest rate, fixed monthly repayment, fixed loan term and the option to include a balloon, residual or buyback.
If you’re unsure if you are in a position to take out a caravan loan or tossing up over different models at different price points, using a caravan loan calculator can be a useful tool to assist in the decision-making process. Most finance brokers, banks and lenders offer calculators on their websites and we can easily direct you to a calculator website if you contact us.
While approaching your bank for a caravan loan sounds simple enough, they may not offer specific caravan loans and instead offer you a generic loan which may be at a higher interest rate than can be sourced from a lender that does specialise in caravan and RV loans.
Using a professional, licensed finance broker is a preferred way of sourcing caravan finance by many people. A broker has easy access to many lenders so they can quickly compare offers, negotiate on your behalf and present you with the cheapest deal they can source.
We know finance brokers that specialise in caravan loans and finance for both individuals and businesses. If you would like their contact details, please get in touch with us.