Caravan Loans

Caravan finance to get you on the road faster

Caravans and motorhomes are as Kiwi as tomato sauce in a tomato-shaped bottle. Whether it’s for travelling in the summer or getting away for a mid-year escape, caravans are an ever-present feature on NZ roads.

But price increases since the pandemic mean a caravan is a significant investment.

If you’re looking to finance a caravan or motorhome, the team at Vehicle Loans can help you find the best deal:

• We work with multiple lenders specialising in caravan and motorhome finance.
• We’ll negotiate hard for you to get the best deal possible.
• We’ve experience helping borrowers in a wide range of situations to get the finance they need.
• We’re experts on lenders’ eligibility criteria and application processes, meaning you save time and hassle.
  

If you’re ready to get a fast, no-obligation quote, call us for free on 0800 651 480. Or if you want to learn more about caravan loans in New Zealand, read our expert guide.

How do caravan loans work?

A caravan loan is a type of secured vehicle finance. The caravan you purchase with the loan will be used as security (collateral) meaning the lender retains the right to repossess the vehicle if you can’t repay the loan.

Caravan loans work similarly to other types of vehicle finance, like car loans:

• You’ll borrow money to finance the purchase of a caravan or RV.
• You’ll make regular repayments to the lender (weekly, fortnightly or monthly) to repay the loan over a fixed term between one and five years.
  

The total amount to be repaid includes the loan principal plus lending costs, including:

• Interest applied to the loan based on the lender’s interest rate
• Loan establishment fees
• Early break fees
• Ongoing monthly fees
• Other costs or fees
  

Secured versus unsecured caravan finance

Who can apply for caravan finance?

Every caravan loan application is different, but in general, the majority of lenders will require you to be:

• 18 years of age or older
• A New Zealand citizen or hold a work permit or permanent resident (PR)
• Currently employed or have a regular income
• Holding a minimum of a New Zealand Learner Licence
  

When you apply, you will also need to provide photo identification and proof of address to verify your identity with the lender.

Can I get a caravan loan with bad or a limited credit history?

If you have a history of defaults or bad credit, you may find it more difficult to gain approval or obtain a competitive rate. But it’s usually still possible to get finance particularly if you apply through a broker with specialist expertise.

Likewise, if you are a younger borrower, you may not have the credit history to offer a traditional lender peace of mind in approving your application. Specialist bad credit vehicle finance may be a better route to take.

Want to see if you qualify for a leisure vehicle loan? The team at Vehicle Loans can conduct a quick-and-easy No Credit Check Pre-Assessment if you call 0800 651 480 now and speak to one of our trusted vehicle finance brokers.

How to save money on your caravan finance

Caravans and motorhomes are generally quite expensive, which means you should take extra care to understand the true cost of your loan. Ensuring you take the time to find the best deal possible for your circumstances could mean saving thousands of dollars on your total loan costs.

Here are some quick tips that could help you save:

• Keep your borrowing amount as low as possible: You could do this by purchasing a less expensive caravan (e.g. a used model) or contributing a deposit towards the cost so you don’t need to borrow the full purchase amount.
• Choose the shortest loan term you can: A shorter term will mean you minimise the amount you need to pay in interest and fees.
• Look for the lowest interest rate you qualify for: Interest will be your biggest cost so it pays to be selective about the rate you settle for.
• Keep fees low: Watch out for loans with high application and ongoing loan maintenance fees. These can quickly inflate the cost of your loan.
  

Minimum and maximum caravan loan amounts

Where should you go for caravan finance?

In New Zealand, you can generally acquire a vehicle loan for a caravan or motorhome from a bank, through a specialist finance broker or from the caravan dealer you buy the vehicle from.

Here’s an overview of these options and the pros and cons of each.

Banks

Banks are a popular option for financing recreational vehicle purchases. However, in a lot of cases the finance is not secured and what you’re actually getting is an unsecured personal loan. Rates on this kind of finance will likely be higher than a secured caravan loan.

Pro: Familiar brands which some borrowers find reassuring when making a big purchase.

Con: Rarely the cheapest option for a specialist need like caravan finance.

Finance brokers

Brokers specialise in assessing the personal circumstances of an individual and presenting them with the most suitable option for finance. Brokers will usually work with a pool of trusted lenders who specialise in different types of vehicle finance, including for caravans, and offer competitive rates.

Trust us, if you’re buying a caravan or financing a boat, it makes a huge difference working with a specialist with experience of that specific kind of finance.

Unlike applying with a bank or dealer where the borrower is on their own, a finance broker will:

• Understand your financial position to find a suitable loan product
• Assist with completing and submitting your application
• Assist with completing and submitting your application
• Advocate on your behalf to assist with approval
• Recommend loans based on your needs as they are not tied to any one particular lender
  

Brokers in NZ also adhere to responsible lending practices as outlined in government consumer codes.

Pro: Can offer specialist advice which is particularly valuable for complicated loan applications.

Con: Usually do not work with every lender in the market.

Dealerships

Many vehicle dealerships that sell motorhomes and caravans will offer finance as part of their service. This is usually finance offered by a third party lender but which is sold to borrowers by the dealer when people are buying a caravan.

Pro: Dealer finance can be a convenient option as most dealerships will allow you to apply for finance there and then when you purchase the asset.

Con: It’s rarely the best deal on offer. Spending a few minutes comparing your finance options instead of agreeing to the first offer presented at a dealership could save you thousands of dollars.

Caravan Loan FAQ

How fast can I get approval for caravan finance?

Once your application has been submitted, most lenders will provide approval the same day. In fact, it can happen in a matter of hours. But if your application is complex, it’s a good idea to allow a couple of days for your caravan finance approval to come through.

Can I get pre-approval on a leisure vehicle loan?

Yes. To see if you qualify for caravan finance pre-approval, call 0800 651 480 now and speak to one of our trusted vehicle finance brokers for a quick No Credit Check Pre-Assessment.

Do I need a deposit for a leisure vehicle loan?

Generally speaking a deposit is not required if you’re buying a vehicle with caravan finance. Most lenders will allow you to borrow 100% of the caravan’s value.However, providing a deposit can reduce the risk to the lender (by reducing the total principal amount owing) which may help you access slightly lower rates. Some bad credit borrowers will only be approved for a loan if they provide a significant deposit.

Can I buy a vehicle from a private seller using a leisure vehicle loan?

Yes. If you are purchasing the vehicle privately (e.g. through TradeMe) the Vehicles Loans team can perform necessary checks to ensure the vehicle is not encumbered (still under finance) or reported as stolen. We can then help generate a private sale agreement and mediate the process between the purchaser and the seller.

Can I buy a vehicle from a private seller using a leisure vehicle loan?

Yes. If you are purchasing the vehicle privately - e.g. through TradeMe - the Vehicles Loans team can perform necessary checks to ensure the vehicle is encumbered (still under finance) or reported as stolen. We can then help generate a private sale agreement and mediate the process between the purchaser and the seller.

What fees does Vehicle Loans charge to apply for finance?

There is no fee to apply for finance.

Lenders and insurers pay Vehicle Loans a fee, commission or brokerage fee for processing the application and settlement of the finance agreement. Any fees that are charged by the financiers to you are fully disclosed and agreed with you before you sign the loan documents.

Vehicle Loans operate under the Credit Contracts and Consumer Finance Act (CCCFA). All financial arrangements we facilitate are compliant with this Act and follow the guidelines under the Responsible Lending Code advised by the Ministry of Consumer Affairs.