Accessible caravan finance for pensioners
Hardly anything you can buy provides the freedom to roam and explore that a caravan does. Making memories is all about having new experiences and being able to get up and go at the drop of a hat, so finding caravan finance as a pensioner shouldn’t need to be an ordeal. The fact is, gaining access to loans when you’re retired can be more difficult. However, it's important to know that there are options out there, such as through Savvy.
Hitting the road has never been easier
Here at Savvy, we believe that finding affordable, convenient solutions for caravan finance shouldn’t be reserved for people in full-time employment. After all, what better time to take off and explore than when you’re retired? We're partnered with a wide range of lenders so we can offer Australians more choice. If you’re looking to hit the road in a new or used caravan soon, discover a range of flexible, cost-effective loans via Savvy.
How does caravan finance for pensioners work?
Many people are used to how banks tend to assess applications for finance, and a lot of pensioners think they’ll find it hard to qualify for a caravan loan when retired – but that’s not the case if you look in the right places. Caravanning is popular with pensioners. It’s a no-brainer once you’re free of your career. That’s why Savvy sources a range of leisure finance products for retired Australians.
Specialist caravan finance works much the same as with a car loan. You use your caravan or motorhome as security during the term, and that keeps interest rates reasonable. When the finance ends, the lender removes their claim, and the caravan is yours, just the same as when you get car finance. The difference with caravan finance for pensioners is that Savvy partners with niche lenders who consider forms of income like age pension and even rental income from investment properties. It’s versatile, accessible finance, and you won’t get penalised just because you’ve worked for forty years and retired. You make affordable monthly repayments, usually over anything between one and five years (although some loans may go up to seven years), and everything is fixed – meaning the amount doesn’t change over time.
What are my different options for caravan finance?
When you’re working out how to finance a caravan purchase, much of what makes your mind up will come down to exactly what you intend to buy. Basically, if you’re looking at a new caravan or motorhome, the best option for you is a secured caravan loan. That’s because one of the qualification requirements lenders have is that caravans don’t exceed a certain age range. Because your purchase is going to fit in with that, you can access lower interest rates by using the caravan as security against your borrowing.
If you’re considering renovating an older caravan or motorhome as a project before you take off and explore the country, there are probably other options available. You could look at a personal loan, for example, which gives you the flexibility to buy what you like and take your time getting it back on the road – but you’ll pay a higher interest rate than with a secured loan. At the end of the day, however, a specialist caravan loan is going to be the cheapest way to finance your purchase, as secured loans come with lower interest rates.