Australia has one of the highest rates of caravan ownership in the world, and with good reason. From the red desert roads of the outback to the sweeping coastal drives along the Great Ocean Road, this country was made for the open road. Whether you’re planning a grey nomad lap of Australia or a weekend escape with the family, a caravan is one of the best investments you can make — and caravan finance makes it accessible sooner than you might think.
At Journey Finance, we help Australians finance caravans, camper trailers, motorhomes, and fifth wheelers through a competitive panel of lenders. Here’s what you need to know before you apply.
What Types of Caravans Can Be Financed?
Most caravan types can be financed through a personal loan or secured asset finance, including:
- Full caravans (pop-top, ensuite, off-road)
- Camper trailers (hard floor and soft floor)
- Motorhomes and campervans
- Fifth wheelers
- Slide-on campers
The type of finance product available will depend on whether the caravan is new or used, its value, and your personal financial situation. Newer, higher-value caravans generally attract better interest rates and longer terms than older or lower-value units.
Secured vs. Unsecured Caravan Finance
Caravan finance in Australia typically comes in two forms: secured loans and unsecured personal loans.
Secured Caravan Loan
A secured loan uses the caravan itself as collateral. Because the lender has security over the asset, interest rates are generally lower than for unsecured loans. If you fail to make repayments, the lender has the right to repossess the caravan. Secured caravan loans are most commonly used for caravans valued above $15,000.
Unsecured Personal Loan
An unsecured loan doesn’t require the caravan as security. This means less paperwork and a faster approval process, but interest rates will typically be higher to compensate for the lender’s increased risk. Unsecured loans work well for lower-value caravans or camper trailers, or for buyers who prefer not to have a charge placed over the asset.
New vs. Used Caravan Finance
New caravans generally attract lower interest rates because they have a known value and are easier to repossess and sell if needed. Used caravans can be financed too, but lenders may impose age restrictions — typically no more than ten to fifteen years old — and may offer shorter maximum loan terms.
If you’re buying a used caravan from a private seller, Journey Finance can still help you secure finance. The process is straightforward, and we’ll help you with the paperwork and payment arrangements.
How Much Can I Borrow for a Caravan?
The amount you can borrow for caravan finance depends on your income, credit history, existing debts, and the value of the caravan. Most lenders will finance between 80% and 100% of the purchase price for eligible applicants, with loan amounts typically ranging from $5,000 to $150,000 for recreational vehicles.
Loan terms for caravan finance generally range from one to seven years, depending on the lender and the caravan’s age and value. Our brokers at Journey Finance can quickly assess your borrowing capacity and tell you what’s realistically available before you start shopping.
What Interest Rate Can I Expect?
Caravan finance interest rates in Australia vary significantly depending on the lender, your credit profile, and whether the loan is secured or unsecured. Secured caravan loans from mainstream lenders typically range from around 6% to 15% per annum, while unsecured personal loans may be higher. The comparison rate — which includes fees and charges — is the most useful figure for comparing products.
Journey Finance compares products across a panel of more than 30 lenders to find the most competitive rate for your specific circumstances. We’ll present you with multiple options so you can choose what works best for your budget.
Can I Include Running Costs in My Caravan Finance?
In most cases, caravan finance covers the purchase price of the caravan only — not insurance, registration, or accessories. However, some lenders will allow you to include ancillary costs such as extended warranties or after-market accessories in the loan amount, provided the total doesn’t exceed the maximum loan-to-value ratio.
If you need to finance additional items separately (such as a tow bar for your vehicle), our brokers can often package these into the same application.
Off-Road and Adventure Caravan Finance
Off-road caravans have surged in popularity in recent years, with Australian buyers investing in premium units from brands like Jayco, Trackvan, Tvan, and Kimberley. These vehicles can cost anywhere from $60,000 to over $200,000 for fully equipped models, making finance an essential tool for most buyers.
Off-road caravans are generally treated the same as standard caravans by lenders, provided the unit is road-registered. Journey Finance has experience financing premium off-road units and can source lenders who are comfortable with higher caravan values.
Motorhome and Campervan Finance
Motorhomes and campervans are classified differently from towed caravans. Because they’re self-propelled vehicles, they can sometimes be financed through the same products as cars — including secured vehicle loans with competitive rates. This can work in your favour because car finance often attracts lower rates than recreational vehicle loans.
Our brokers will assess whether your motorhome or campervan qualifies for vehicle finance or whether a recreational vehicle loan is the more appropriate product.
How to Apply for Caravan Finance
Applying for caravan finance through Journey Finance is straightforward. We’ll need some basic information about you — including your income, employment status, and living expenses — along with details about the caravan you want to purchase. The application process takes around ten to fifteen minutes, and we can typically provide a conditional approval within one business day.
Ready to hit the open road? Apply for caravan finance today with Journey Finance and take the first step toward your next adventure.