Caravan Finance for Pensioners

Get back on the road and explore when you’re retired. Compare flexible caravan finance offers for pensioners through Savvy.

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, updated on August 24th, 2023       

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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.

Pensioner Small Loan

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.

Here’s why retired Aussies trust Savvy to source finance

Your caravan finance for pensioners questions answered

With caravan finance for pensioners, can I upgrade during the term?

You can, but because your borrowing is secured against the existing caravan, you’ll need to sell it and pay off your current loan. Once that’s completed you can buy and finance a new caravan. The purchase of your new caravan can all take place at the same time as you dispose of your old one, this means you will have access to a caravan at all times. 

When will I own my caravan with a loan?

With secured caravan loans, you own it as soon as you sign the agreement. The lender registers an interest in the van with the appropriate authority, so they have a claim if you fail to repay the loan – but the caravan is yours from the start. You’ll need to take out the appropriate insurance for a caravan when you use secured leisure finance.

Can I repay caravan finance early?

You can. However, secured finance comes with some early repayment fees that apply when you settle the loan before the end of the term. Personal loans will work slightly differently – and it’s a good idea to ask our consultant about specific rules for each product. Some may come with fewer early repayment fees than others. For smaller cash loans up to $5,000, there are never any charges for making extra repayments or paying off the finance ahead of time.

How does my interest rate get worked out?

With all loan types, interest rates depend on a couple of different factors. First, the age of the caravan you’re buying affects how much you pay – if the caravan is older, your rate gets higher and vice-versa. That’s because older vans pose more risks for lenders. Your credit report also influences the interest rate – however, don’t worry too much if you’ve experienced past problems, and you can talk to a Savvy consultant about bad credit caravan finance.

Do I need to use property as security for a caravan loan?

You don’t. Savvy partners with leisure finance lenders who’ll take all your income into account when assessing your application, and you can provide extra collateral against your borrowing by using a secured caravan loan.

 

Why use a caravan finance broker like Savvy?

We’ll examine more lenders and products to find you the best rates on caravan finance out there. You can talk to a real person who knows the lending marketplace inside-out, and we’ll also help you navigate the application process. 

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