It is easy to fall in love with a van and judge the budget by a single number: the weekly or monthly repayment. But a caravan is a bit like a second small household on wheels, and it comes with its own bills. If you list them before you buy, there are fewer surprises on the road.
This is general information, not personal advice. Your own figures will differ, so treat the examples as prompts rather than predictions.
Start with the fixed yearly costs
These arrive whether or not the van leaves the driveway.
- Registration. Caravans are registered in each state and territory, and the fees and rules differ. Check with your state or territory road authority for the current cost.
- Insurance. Comprehensive cover for a caravan is generally a separate policy from your car. Premiums depend on the van's value, where it is stored and how you use it.
- Storage. If the van does not fit at home, a secure yard or covered bay is an ongoing cost. Ask about access, security and whether you can use it for packing.
- Servicing. Bearings, brakes, gas, electrics and seals all need regular attention. Many owners set aside a yearly amount rather than wait for a bill.
Then the trip costs
Costs that move with how much you travel are harder to forecast, so it helps to sketch a typical trip.
- Fuel. Towing a van usually uses noticeably more fuel than driving without one. Your own tow vehicle's real-world consumption is a better guide than a brochure figure.
- Campsites. Powered sites, national park fees and caravan parks vary widely with season and location. Free camping can lower the average, but not everywhere allows it.
- Tolls, ferries and permits. If your route includes Tasmania or remote tracks, these can add up.
- Consumables. Gas, water treatment, laundry and the odd replacement part.
Don't forget the set-up
Many new owners are surprised by how much a van needs on day one. Common extras include a weight distribution hitch, a better tow mirror set, levelling blocks, a spare tyre and wheel, leads and hoses, bedding and cooking gear. Some of this may be included by the dealer. Ask for a written list of what is in the price.
A simple worked example
Here is a made-up annual sketch to show the idea, not a prediction.
| Item | Example yearly amount |
|---|---|
| Loan repayments | $11,500 |
| Registration and insurance | $2,200 |
| Servicing and repairs set-aside | $1,200 |
| Storage | $1,500 |
| Fuel and campsites (about 8 weeks away) | $4,000 |
| Total | $20,400 |
In this example, repayments are only a little over half the picture. Your own mix will change this a lot, but the habit of adding it all up is the useful part.
Where finance fits in
If you plan to borrow, the repayment is shaped by the amount, the term, the rate and fees. A longer term lowers the repayment but usually increases total interest. Look at the comparison rate, which is designed to show the cost of a loan including most fees, and read the lender's documents carefully. ASIC's MoneySmart has independent guidance on borrowing and budgeting.
Before approaching a lender, work out the highest total monthly outlay you would be comfortable with, then work backwards to the loan size. If you would like to explore your options, you can start a free, no-obligation enquiry. Any finance is subject to lender criteria and approval.
A quick habit that helps
Open a spreadsheet and list each cost in three columns: yearly fixed, per-trip and one-off. Add a 10 per cent buffer for the unknowns. If the total makes you uncomfortable, that tells you something before you have signed anything. If it feels fine, you have a realistic number to take into conversations with dealers and lenders.
Also consider what happens in a year when the van barely moves. Illness, work, floods or a family event can cancel a season. Fixed costs still run, so it is worth checking that you could cover them from your regular income without relying on the trip happening.
Takeaway
A repayment is a number. Ownership is a budget. List the registration, insurance, storage, servicing and trip costs first, and the loan decision becomes much clearer.
