For many avid explorers, owning a caravan is the perfect way to experience all that Australia has to offer—whether it’s zipping from beach to beach or camping under the stars.
But not everyone can meet the cost of purchasing of a caravan with their own savings, much less a brand-new model.
This article will cover the available financing options for a second-hand caravan, as well as what to keep in mind when looking for the right loan.
Can you get a loan for a second-hand caravan?
Yes — getting a loan for a second-hand caravan isn’t that much different from a new caravan or car loan. Much like other vehicle loans, a second-hand caravan loan works by letting those looking to buy a used caravan borrow a certain amount of money from a lender to make the purchase. Once the loan amount has been transferred, borrowers can make the purchase and begin to make regular repayments to pay back the loan amount plus interest.
Benefits of financing a second-hand caravan
Getting a loan to finance a second-hand caravan offers many advantages, including:
- Immediate ownership — With a used caravan loan, the loan amount will help to cover the cost of the purchase, letting buyers immediately take ownership of the caravan and start using it without needing to have enough personal funds to make the purchase.
- Better budget management — A second-hand caravan loan allows the full cost of buying the caravan to be spread out over time into more manageable and affordable repayments.
- Flexible repayments — Lenders are likely to offer flexible loan terms on a used caravan loan, allowing borrowers to choose a repayment plan that works best for their level of income and current finances.
What type of loan can I get for a used caravan?
There are two main types of used caravan loans: secured loans and unsecured loans. Here’s an overview of how of each type of used caravan loan works.
Secured loan
With a secured loan, the used caravan intended for purchase will be used as security against the loan. What this means is that if the borrower becomes unable to make the required repayments for the loan, the lender may be able to repossess the used caravan and sell it off to recoup their losses.
The upside to secured loans is that the security gives lenders more assurance for the loan, which usually results in borrowers being able to enjoy a lower interest rate and lower the cost of their repayments.
Unsecured loan
Unlike secured loans, unsecured loans do not use the used caravan as security. Lenders may decide to offer an unsecured loan for a variety of reasons, such as the age or condition of the vehicle.
With no security on the loan, the interest rate offered will tend to be higher than with secured loans, which could result in higher costs overall for the loan.
Borrowers should do their own research to determine which type of used caravan loan best fits their financial situation and needs.
How much can I borrow to purchase a used caravan?
Used caravans usually cost less than new models, so naturally, buyers need to borrow less. That being said, how much can be borrowed on a used caravan loan will be dependent on several factors. Lenders look at factors like:
- Income
- Credit score
- Living expenses and spending habits
- The value of the second-hand caravan
In short, you can finance up to $150,000 on a secured loan on a used caravan.
What do I need to finance a used caravan?
Applying for a used caravan loan will usually require the following requirements — applicants must:
- Be at least 18 or older
- Have a steady stream of income and the documents to prove it (bank statements, payslips)
- Have proof of your identity (driver’s licence or other ID)
- Have details of the second-hand caravan (not mandatory but this will help)
Ready to finance your used caravan? Let our brokers find you the best rates and terms today!
As one of the best caravan finance brokers in Australia, our team can access a network of over 50+ approved lenders to find the ideal finance solution that meets your needs. Get a free quote by filling out our online form, or give us a call at 1300 CREDIT (1300 273 348) and get on the road sooner with a second-hand caravan loan!
