Caravan Finance Rates | What you need to know

Considering buying a caravan and touring around Australia this summer? Caravanning is a great family holiday alternative and with a host of free camping grounds across the country, there's no shortage of great locations for your next holiday.  However, before you jump in the deep end and race out looking at caravans it pays to know what caravan finance rate you qualify for and your borrowing power and that's where Ausloans can help. 

First, let's take a look at caravan finance rates and help you navigate through the confusion of the disparity in rates on offer.

What is the best low-rate caravan finance in Australia?

If you conduct a quick google search of caravan finance rates you will be presented with a range of listings displaying Caravan finance rates from as low as 3.45%. However, a quick glance at the listings shows that rates vary between lenders. 

As an example, the National Bank advertises Caravan finance rates ranging from 6.99% p.a. to 18.99% p.a.. Similarly, if we look at popular finance comparison sites like Finder we can clearly see that lender rates vary considerably. 

With so many different rates being advertised, you could be forgiven for feeling confused by both rates on offer and which lender to choose. In fact, one of the most frequently asked questions we get is, what rate can you offer me?

What's your Caravan finance rate?  

There is no simple answer to this question as every lender is different and lender rates offered are based on a number of variables including income, credit history, age of the caravan, and capacity to name a few. 

To determine the rate on offer lenders assess each customer's personal credit profile against their lending criteria. and based on this will offer the customer a personalised rate.  In other words, you don't always get the advertised rate. These are only an indication of the best rate available so be warned that your personalised rate may be quite different from the advertised rate.

Herein lies the purchasers' lender challenge. Many caravan buyers begin their buyers' journey not really knowing how much they can borrow (capacity) or the rate available to them. Simply visiting a loan comparison site and then using the advertised rate and a loan repayment calculator to first, determine repayments and affordability and then, submit an application to the lender, is a floored practice that could ultimately impact your credit score. 

Let me explain. Every time you submit a finance application to a lender it impacts your credit score. Choosing the lender based on the lowest rate on offer could work for you if you have a high credit score and an unblemished credit history, but it could also damage your credit rating if you fail to qualify, especially if you submit applications to multiple lenders in quick succession.

So what about that caravan finance calculator? Caravan finance calculators are designed to give you an indication of how much your Caravan repayments might be if you qualified for the rate you entered into the repayment calculator. This is not necessarily the rate you will be offered by the lender. 

The challenge for the purchaser when looking to buy a caravan is knowing exactly how much you can borrow, the rate you will be offered, and how much the loan will cost you on a weekly basis (Weekly repayments). 

Solving the caravan finance challenge

While the information on loan rates and repayments above outlines the challenges of working out your borrowing capacity there is a simple solution, get pre-approved for caravan finance before commencing your search for the perfect van. 

Forget scouring the web and submitting finance applications with multiple lenders and let Ausloans do the work for you. Here's the advantage of using our specialist caravan finance service. 

Ausloans is Australia's largest independent finance specialist and with over 40 lenders and the most advanced lender matching software in the industry, we are able to assess your lending capacity and deliver you real rate offers from multiple lenders without impacting your credit score. 

How? When you submit a finance inquiry through our 2-minute online application form our advanced lending software, Zink instantaneously matches your credit profile against the lending criteria of all available lenders and delivers a report on which lenders are prepared to offer you the finance you need. 

Zink doesn't just match you with lenders, it delivers all the information you need to make an informed decision about which loan and rate are best for you, including the total amount the lender is prepared to offer, the personal interest rate on offer from the lender and the weekly or monthly repayments required to service the loan. All of this is done using a soft touch credit check so it won't affect your credit score. 

The only time you run the risk of a potential hit to your credit score is when a full application is submitted to a lender. But don't worry we've got you covered here and minimise this risk by only submitting to the lender of your choice from the panel of lenders we know are willing to offer you a caravan loan.

It's simply the easiest and safest way for caravan purchasers to find the right finance solution for their needs and circumstances without impacting their credit score. 

Our advice when looking to finance a caravan, know your real borrowing capacity and weekly repayments before you begin your search. It can save a lot of time, help you focus your search on what you can realistically afford, and help you avoid the disappointment of finance refusal.

Ready to get started. Get your personal rate and get pre-approved caravan finance today.