5 ways to own a caravan without busting your budget

Published on November 20th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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If owning a caravan is part of your bucket list, then knowing how to maneuver the caravan buying market can be a valuable perk. Not only will it let you dodge lemons, but it can also allow you to score a quality caravan that doesn’t bust your budget. Here are five ways to own a caravan without going bust.

1. Before you buy, ask

It is easy to get lost in the excitement of purchasing a caravan and exploring the open road with it, but there are a few questions you need to ask yourself before placing your hard-earned cash on it. These questions can help you refine your search and know what to look. Some questions you can ask yourself are:

  • What is your budget?
  • Do you want to purchase a new or used caravan?
  • What fixtures and fittings are a must?
  • What is the cost of accessories that will be needed?
  • Will your car be able to tow the caravan?

2. Know your finance options

Whether you are purchasing a new or used caravan the type of finance option you choose is vital. The most common type of finance option that Aussies choose is to take out dealer finance or a leisure loan from a broker or bank. Weighing the pros and cons can help you know if the option you choose is affordable to your budget.

Although getting a caravan at a dealer along with the financing can seem like the more convenient, you could face a higher interest rate and limited options. Brokers, on the other hand, can offer you a range of options that come at a competitively low interest rate. Compare your options along with the interest rate, fees, and charges to see if the loan will be affordable for you.

3. Borrow what you need

You may have a stellar credit score which can be beneficial when it comes to increasing your borrowing power and the amount you can borrow. This can tempt you to borrow more than you need, which can affect your repayments. It can also cause you to impulse buy something that you may regret a few months down the line. Remember to look beyond the price tag of purchasing the caravan but also consider the ongoing costs in the form of maintenance and repairs that can affect your budget. Choose a caravan that is able to retain its value longer.

4. The cost of protecting your caravan

Putting in the research and comparing your way to the caravan of your dreams is not an easy thing to do, and to have this taken away through theft or damage can be heart-wrenching for your wallet. To enjoy road tripping with your caravan you may want to consider getting insurance. The premium you will pay varies based on various factors. Therefore, it pays to compare your options.

5. Do you have space for your new baby?

Some of the things that you need to consider when purchasing a caravan are whether you have adequate space to store it. Caravans are usually large in size. If you do not have space but still want to own a caravan you could consider renting it out, especially if you will be only using it on a seasonal basis.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for leisure loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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