When you’re dreaming of the wide open road, it’s easy to focus on the fun stuff. You’ve got a brand new caravan, pristine coast line and an easy-going lifestyle to look forward to!
But before you hit the highway, it’s important to know what your repayments will actually look like and how you can plan to ensure they won’t stretch your budget. Caravan loans are flexible and repayment amounts can vary depending on your loan size, interest rate and other factors.
The easiest way to work it all out? Using our online caravan finance calculator! Here’s a run down of how it works and how it can earn you a few extra weeks on the road.
Your monthly (or fortnightly) repayment is shaped by a few key numbers:
Price of the caravan: The more you borrow, the higher the repayment
Deposit amount: A larger deposit reduces the loan size and interest paid
Loan term: Longer terms = lower monthly payments, but more interest over time
Interest rate: Even small differences in rate can impact the total cost
Fees: Some lenders include setup or monthly fees in the repayments
The Loans Unlimited caravan loan calculator factors in each of these, helping you understand how they interact to affect the overall cost of your loan.
Here are a couple of examples of loan structures for a caravan worth $50,000. Depending on the terms and deposit sizes, the repayments could look like:
Deposit: $2,000
Loan amount: $48,000
Interest rate: 8%
Loan term: 5 years
Estimated monthly repayment: ~$972
Total interest paid: ~$10,320
Deposit: $10,000
Loan amount: $40,000
Interest rate: 7.5%
Loan term: 3 years
Estimated monthly repayment: ~$1,242
Total interest paid: ~$4,712
Deposit: $5,000
Loan amount: $45,000
Interest rate: 8.5%
Loan term: 7 years
Estimated monthly repayment: ~$692
Total interest paid: ~$13,248
There’s a lot of ways you can alter a structure to suit your lifestyle. You can opt for a shorter term for high monthly costs but lower overall interest, or put down a few thousand dollars on your deposit to chip away at the principal.
A caravan loan may be a big commitment, but with the right planning it won’t get in the way of your long-awaited adventures. Here are some practical tips to help you prepare:
Start by entering your figures into the Caravan Loan Calculator. You can adjust the price, deposit, interest rate and loan term to calculate different repayment options. It’s one of the easiest ways to check if your dream caravan fits your budget.
If you’re a FIFO worker, casual employee or self-employed, monthly repayments might not fit your pay cycle. Many lenders offer flexibility around this, so think of a way you can align payment dates with your income.
Just because you can afford the maximum repayment doesn’t mean you should opt for it. Leave room in your budget for travel expenses, caravan maintenance, insurance, fuel and unexpected costs. A smaller loan or a longer term can offer plenty of breathing room.
If you plan to own your caravan for the full loan term or beyond, a longer repayment schedule may work well. But if you’re considering upgrades or resale within a few years, a shorter term may leave you in a better position with less interest paid and no leftover debt.
Understanding your loan repayments let’s you make smart decisions right from the start. When you know what to expect, you can hit the open road without hitting any financial asteroids.
At Loans Unlimited, our online process and supportive crew make it easy to compare options, calculate repayments and plan ahead. Whether you’ve already picked out your caravan or you’re still exploring, we’ll help you find a loan that works for your lifestyle.
Use our Caravan Loan Calculator or click ‘Apply Now’ to get started.
