Secured Caravan Loan

A secured caravan loan is the most common way to finance a new or used caravan for private use. However it can apply to more than just its namesake. When you get this type of finance with AAA, you can purchase a horse float, 5-wheel vehicle or even a larger motor home. This type of loan uses the caravan as collateral, which results in a lower interest rate. However, if the loan repayments are not made as agreed, the caravan can be sold to recover any outstanding debt. It's a simple and straightforward option that’s highly popular with our customers, offering the dual benefit of lower rates and flexible loan terms.

Benefits of a Secured Caravan Loan

Secured caravan finance is an ideal choice for many. It provides a fast and efficient way to get on the road with a new camper. This type of loan offers several advantages, including:

1. Borrow up to 100% or more of the caravan's cost. The finance amount can cover addition costs such as registration, insurance and any accessories.
2. No deposit required, making it easier to finance your new caravan without the upfront costs.
3. Highly competitive interest rates to ensure you get the best deal.
4. Fixed interest rate with a regular repayment schedule, perfect for long-term budgeting.
5. Flexible loan terms of up to seven years, allowing you to tailor the repayment period to suit your financial situation.
6. Ability to pay out the loan early.

Secured Caravan Loan Interest Rates

The interest rates for a secured caravan loan are lower than a regular unsecured personal loan. This makes consumer caravan finance attractive to most wage earners. Especially once you factor in that the interest rate is fixed for the entire term of the loan. With this in place, you know exactly what you will be paying with every transaction, making it incredibly easy to budget for.

Your interest rate is determined by various factors, such as the year, make, and model of the caravan you are purchasing, as well as your credit profile. This profile includes your credit score, residential history (e.g., homeowner, renter, or boarder), and employment status (e.g., full-time vs. casual). For instance, a homeowner with full-time employment will generally receive a better rate than a casual boarder. This is due to the varying risk profiles lenders associate with each situation.

Even though there is a predetermined time frame for your caravan loan repayments, there is the option to pay it out at any time. If your financial situation changes significantly or you receive a one-off windfall, you can exit the loan term by paying the remainder in one transaction. Paying out the loan early reduces the amount of interest paid.

Caravan Loan Repayment Calculator

Estimate your monthly repayments using our Caravan Loan Calculator.

You will need to enter the loan amount, a loan term up to 7 years and an estimated interest rate. The loan amount can include the full purchase price plus any accessories such as an annex, extra batteries, solar etc. Your interest rate will be based on your prior credit history and profile. AAA Finance partners with over 40 lenders to match you with the best loan option, helping you secure the lowest rate and most favorable terms for your needs.

You can also include a balloon payment option in your caravan loan. A balloon reduces the payments during the loan term, and you pay one larger bulk amount at the end of the loan term.

Apply for a Secured Caravan Loan Today!

If you have decided that a secured caravan loan is the right option for you, then get in touch with the team at AAA Finance today. Fill out a quick online enquiry form, or give one of our finance experts a call on 07 5493 1222. You can even get a pre-approved caravan loan. A pre-approval allows you to shop with confidence by having a set budget and knowing that your funds are approved.

Speaking to a specialist from AAA Finance is your first step on the way to owning your dream caravan or camper trailer. We have made applying for finance a straightforward 5 minute process that involves a quick chat over the phone. We will then request your identification and proof of income and you will need to electronically sign a privacy form so we can speak to caravan financers on your behalf. Our experienced team of finance brokers will then find the best caravan loan to suit you from our large panel of lenders. Your loan contract is then signed, and lastly, funds are sent to the seller. You are then ready to set off on your next adventure!

Insurance

When you take out a secured caravan loan, the lender will require you to have comprehensive insurance for your camper. This insurance covers accidental damage, theft, fire, and extreme weather events, providing peace of mind for your investment. Ensure you are fully protected on and off the road. We can get you a competitive insurance quote from a specialist recreational vehicle insurer.

Useful Link: How to Buy the Right Camper Trailer

Looking to buy the perfect camper trailer? This article outlines key factors to consider, such as size, weight, features, and budget, to help you make an informed decision tailored to your needs. Check it out here.

Disclaimer

* Your actual interest rate will be based on a number of factors, including the type and age of the asset you are seeking to purchase; the information you provide during your application and the term of the loan. This rate may be different from our lowest advertised rates. The Comparison Rate is calculated on a Secured Loan of $50,000 fixed for a term of 5 years, effective 9/11/2023 and subject to change. The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate.