🏞 Caravan Finance Repayment Calculator
📈 Your Repayment Summary
Total Interest Paid
$15,160
Interest-to-Loan Ratio
23.3%
📈 Annual Running Costs (5-Year True Cost)
Beyond loan repayments, caravans carry ongoing ownership costs that most buyers underestimate.
Annual loan repayments$16,032
Registration & CTP (est.)$450/yr
Comprehensive insurance (est.)$900/yr
Servicing & maintenance (est.)$600/yr
Storage / site fees (est.)$1,800/yr
Tow vehicle fuel (extra, est.)$1,200/yr
Total estimated cost / year$20,982
5-year total estimated ownership cost$104,910
Running cost estimates are indicative averages. Actual costs vary significantly by state, usage, and caravan type.
Chattel Mortgage vs Secured Loan vs Personal Loan
The right finance structure depends on how you use the caravan. Here's a quick comparison for a $65,000 caravan over 5 years:
Business use
Chattel Mortgage
Rate (indicative)7.0–8.5% p.a.
Monthly repayment$1,287
Total interest$12,200
GST credit$5,909 (if GST reg.)
Tax deductible?Yes — interest + depreciation
Personal use — best rate
Secured Caravan Loan
Rate (indicative)6.5–9.5% p.a.
Monthly repayment$1,336
Total interest$15,160
GST creditNo
Tax deductible?Not for personal use
Unsecured
Personal Loan
Rate (indicative)9.5–14% p.a.
Monthly repayment$1,358
Total interest$21,480
GST creditNo
Tax deductible?No
Caravan Finance in Australia: What You Need to Know in 2026
Australians bought more than 30,000 new caravans in 2025, with the average purchase price surpassing $70,000 for the first time. Financing has become the norm — but there's a big spread between the best and worst rates available in the market, and using the wrong structure can cost you thousands over a 5-year term.
Is a caravan classed as a vehicle or asset?
Lenders classify caravans as consumer assets (for personal use) or business assets (if used in your business — e.g. tradesperson accommodation, rental income). The classification affects which products you can access and your interest rate.
- Personal use caravan: Secured personal loan, car/caravan loan, or dealer finance
- Business use caravan: Chattel mortgage (most tax-effective), finance lease, or business loan
New vs used caravan — does it affect your rate?
Yes. Most lenders offer lower rates on new caravans. Used caravans over 5 years old attract a margin loading of 0.5–1.5% as the lender's security risk is higher. Caravans over 10 years old may not qualify for secured finance at all — in which case an unsecured personal loan is the only option.
Balloon payments on caravan loans
A balloon payment (residual) at the end of your term can significantly reduce monthly repayments. For a $65,000 caravan on a 5-year term, a 30% balloon payment of $19,500 reduces monthly repayments from approximately $1,336 to around $970 — a saving of $366/month. However, you will owe $19,500 at the end, which you'll need to refinance, pay in full, or use a trade-in to cover.
Tips for getting the best caravan finance rate
- Get pre-approval before visiting the dealership — it gives you negotiating power
- A 10–20% deposit reduces your loan amount and often improves your rate
- Compare the comparison rate (not just the headline rate) to see true cost
- If the caravan is used partly for business, ask about chattel mortgage — the tax benefits can be substantial
- Avoid extending the term beyond 5 years for a depreciating asset — you may be "underwater" (owing more than it's worth)
Caravan Finance FAQ
What is the best way to finance a caravan?▼
For personal use, a secured caravan loan typically gives the best rate. For business use, a chattel mortgage is usually most tax-effective. Avoid dealer finance unless you've compared rates — it's almost always the most expensive option.
Can I get caravan finance with bad credit?▼
Yes, though rates will be higher. Specialist lenders assess your current income and employment stability rather than just your credit score. A larger deposit helps significantly.
How much deposit do I need for caravan finance?▼
No deposit options exist, but 10–20% is recommended to get competitive rates and avoid being underwater on depreciation. Some lenders require a deposit for caravans over 5 years old.
Can I use a caravan loan for a second-hand van?▼
Yes — most lenders will finance used caravans up to 10–15 years old. Rates may be 0.5–1.5% higher than a new caravan loan.
Is caravan finance tax deductible?▼
Only if the caravan is used to produce business income (e.g., as a rental, contractor accommodation, or for business travel). Personal holiday caravans are not tax deductible.
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