Secured, unsecured, balloon payments, comparison rates — we break down every caravan finance option so you can make the right call.
Caravans aren't cheap. A decent mid-range van will set you back $80,000–$120,000 new, and even used vans have held their value remarkably well post-COVID. For most buyers, that means finance.
The problem? Caravan finance is a minefield. Compare lenders naively and you could end up paying tens of thousands more than you need to over the life of the loan. Here's how to navigate it properly.
Secured vs Unsecured Loans
The first decision is whether your loan will be secured (the van is collateral) or unsecured (a personal loan with no asset attached).
Secured loans typically offer lower interest rates — often 2–4% lower — because the lender has recourse if you default. The trade-off is that they can repossess your van. For most buyers, a secured loan is the right choice.
Unsecured personal loans are simpler but more expensive. They make sense if you're buying a very old van that lenders won't secure against, or if you want flexibility to sell quickly.
Understanding Comparison Rates
Lenders advertise interest rates, but the number that actually matters is the comparison rate — which includes fees and charges rolled into a single annual percentage.
An advertised rate of 6.9% with a $500 establishment fee and $40/month account-keeping fee might have a comparison rate of 8.5%. Always compare on comparison rate, not headline rate.
The Balloon Payment Strategy
A balloon payment (or residual) is a lump sum you defer to the end of the loan. It reduces your monthly repayments during the loan term, then you either pay the balloon, refinance it, or sell the van to cover it.
Example: A $100,000 van with a 20% balloon ($20,000) over 5 years at 8% means you're only financing $80,000 during the loan period — significantly lower repayments.
The catch: you're not building equity as fast, and if the van depreciates more than expected, you could end up owing more than it's worth.
What Finance MyWay Offers
For buyers through Camplify Xchange, we've partnered with Finance MyWay to offer competitive RV finance. Their standard product works like this:
- Interest rate: 8% p.a.
- Establishment fee: $500
- Account keeping: $40/month
- Balloon option: Up to 30%
- Loan terms: 1–7 years
For a $100,000 van over 5 years with a 20% balloon, that works out to approximately $465/week — which stacks up favourably against comparable lenders.
Checklist Before You Apply
- Know your credit score (check via Equifax or Experian free)
- Have 3 months of bank statements ready
- Have the seller's details and the van's compliance plate info
- Confirm the van's market value (compare against similar Xchange listings)
- Decide on your preferred term and balloon amount
Getting pre-approved before you negotiate is a powerful position to be in — you know your budget, and you can move fast when you find the right van.
Part of the Camplify Xchange editorial team, sharing expert RV advice for Australian adventurers.