Financing Your RV

With a caravan or RV asset lease, the financier purchases the RV on your behalf in exchange a fixed monthly lease fee.

When the lease concludes, you can retain use of the camper, motorhome or caravan by refinancing the lease, paying a lump sum to take ownership of the van or depending on the contract sell to pay off the residual or walk away.

Commercial hire purchase is another arrangement where the financier agrees to purchase the caravan, camper or RV on your behalf and hire it back to you for a set term.

In a commercial hire purchase, however, you usually take greater financial responsibility for the upkeep of the RV compared to one leased on an asset lease loan.

Terms are usually shorter, too, and there are tax implications depending on how the RV is used.

If you don’t wish offer anything up for security, you can still finance your caravan, motorhome or camper purchase with a personal loan. Interest rates tend to be higher for unsecured loans compared to those provided on security.

A secured RV loan is where the financier advances you funds to purchase the RV in exchange for security against the van, your home or another private asset.

You take ownership of the RV at the time of purchase but only obtain clearance on your secured title once the final payment has been made.

A chattel mortgage is a type of secured loan where the RV serves as security in exchange for the funds required for its purchase. Chattel mortgages are primarily used for business assets.

As you would with any secured loan, you take ownership at the time of purchase and obtain a clear title once the final payment has been made.