How to Apply for a Camper Trailer or Caravan Loan
Dying to hit the road, but haven’t quite got the funds? This is a scenario that plays out time and time again for Australian families. You want to buy your dream caravan or camper trailer, but you don't have all the finance answers. What camper trailer finance options are available? How do you secure the best finance deal? And whether you can afford the loan repayments? It’s time to get your head out of the sand and get camping!
Caravan and camper trailer finance options
There are 3 finance options available through AAA Finance.
- Secured camper finance
- Personal camper finance
- Business camper finance
The loan you are approved for will be based on factors such as your income amount, whether you work for wages or have an ABN, the age and type of camper you are purchasing, credit history, available assets and so on. It is provided once a repayment framework is negotiated and agreed upon. In accordance with what you can afford and the size of your loan.
Get yourself secured camper trailer finance
What most people would consider as a “traditional” form of loan, a consumer or ‘secured’ loan is lent to an individual to enable them to pay for various items - such as a caravan. This type of loan uses the asset you are buying as security against the loan. Highly competitive interest rates and early loan pay out options make this a popular finance option. This type of loan suits those who are purchasing new or relatively new campers and caravans.
Purchasing older campers using a personal loan
A personal loan is used to purchase older camper trailers and caravans that do not qualify for a secured loan. Interest rates are higher as there is no 'security' against the loan. Once you are approved funds are deposited into your bank account. There are no restrictions on what you purchase with the funds.
Apply for business camper trailer finance
Business camper finance is available to sole traders, self-employed, partnerships, trust and business owners. To qualify you need have an active ABN and be able to claim your camper trailer or caravan as a business asset. For example, if you’re a builder you may claim your purchase as 'business related' if you work away from home during the week.
A no doc or low doc loan offers ABN holders a finance option that doesn’t require income statements, pay slips, tax returns or other bank documents. Because of this the loan approval process can happen much quicker. Providing you with funds in a significantly shorter time frame. There are also several other benefits of business camper trailer loans. These include tax breaks, long term repayment structures, fixed interest rates and balloon payments.
Can I afford the loan repayments?
When arranging your camper trailer loan it is important to have a loan agreement which can work in with your budget. This ensures you can manage your repayments over the term of the loan and protects your credit rating into the future. Our easy to use calculator allows you to vary the loan amount, term and interest rate. A repayment is calculated based on these three parameters.
Consider a balloon repayment
If a finance provider offers you a balloon repayment, what they’re offering is a loan with small repayments throughout its term and a bulk or lump sum repayment at its conclusion. This can be particularly advantageous option for people applying for caravan or camper trailer finance because:
- It provides you with the funds required to get you on the road.
- If you’re travelling for an extended period of time (for example, a year), it means you can better enjoy your time away by making smaller monthly repayments.
- Once you have arrived back home and have reduced costs, and/or are back at work, you can pay the bulk of your loan back then.
Essentially, balloon repayments allow you to have more cash in hand when you need it - and pay back your loan at a time which best suits you.
Hit the road!
No matter what path you take to secure your caravan loan, AAA Finance are expert finance providers who can easily guide you through the process. We work with a panel of over 40 lenders to get you the best deal possible. And we structure your repayments to best suit your lifestyle and budget.
If you have any more questions or would like to talk to us about applying for a loan, call us (07) 5493 1222 or contact us online.
About the author
Peter Watman has extensive finance and automotive experience having worked in both industries for over 30 years. Peter founded AAA Finance and Insurance in 2012. He leads an experienced team that provides quick and easy finance solutions along with exceptional customer service.
