Australians are spending more on motor vehicles, with caravans and motorhomes growing in popularity as more of us choose domestic travel over international travel for our holidays.
According to the latest Commonwealth Bank Household Spending Intentions (HSI) report, car loan applications to purchase new and used vehicles were up in December 2020, compared to December 2019.
The report theorised that this improvement could be partially attributed in the housing sector’s recovery, as RBA research has found that spending on motor vehicles generally has the highest response to changes in property prices. That said, the increasing shift to work-from-home could also work against this trend.
Looking at travel spending, the report found that in December 2020, the biggest annual spending increases were recorded by camper, recreational & utility trailer dealers, motor home & recreational vehicle rentals and trailer parks & camp grounds.
CBA senior economist, Belinda Allen, said that Australia’s regional economies could benefit from these findings, as “Australians who typically head abroad are instead spending on domestic getaways due to COVID-19-related restrictions on overseas travel.”
Remember that caravans can cost anywhere from $10,000 to $600,000, or even more. And keep in mind that it might not be just the caravan itself you’ll need to pay for – there could also be the expense of decking it out with appliances, attachments, modifications and other conveniences, if it’s not already fully equipped. This can make a big difference to the kind of holiday lifestyle you may be able to enjoy from your new purchase.
Plus, there’s also caravan insurance, servicing, and other upfront and ongoing fees and charges to consider. You could look at rolling some of these costs into your personal loan, though this would mean paying interest on these charges over time, costing you more in total.
Be sure to compare the available options and consider which caravan loan may best suit your financial situation.