The regulator reviewed more than 350,000 loans across eight car finance providers and raised concerns about how some lenders monitor loans distributed through third parties such as dealers and brokers. The key message for caravan buyers is simple: the lender remains responsible for consumer outcomes, but borrowers should still take an active role in checking whether a loan is genuinely suitable, affordable and transparent.

One of the biggest issues ASIC highlighted was the way fees can alter the true cost of finance. Some loans carried separate establishment charges from both the lender and the distributor. In one example identified by the regulator, fees on a loan of just under $50,000 exceeded $9,000. For anyone financing a caravan, camper trailer or hybrid van, that is a clear reminder that a low advertised rate does not automatically mean a low total cost.

Before signing, buyers should compare the interest rate, comparison rate, establishment fees, ongoing fees, early repayment rules, balloon payments and any add-ons bundled into the finance process. A repayment that looks manageable each month may still be expensive over five or seven years if fees, residuals or optional extras are built into the agreement.

This is particularly important in the caravan market, where purchase prices can vary widely and buyers may be tempted to stretch for upgraded layouts, off-road capability, solar systems, towing accessories or comfort features. Those extras may be worthwhile, but they should be considered alongside insurance, registration, storage, servicing, fuel and travel costs.

For a stronger starting point, buyers can compare caravan loans before heading into a dealership or private negotiation. It can also help to model repayments under different loan sizes, terms and interest rates so the budget is tested before emotions take over.

The practical takeaway is not to avoid finance altogether. A well-structured caravan loan may help Australians buy sooner and potentially preserve cash for travel, maintenance and emergencies. The important step is to slow down, ask for a full breakdown of costs, understand who is being paid, and compare the total amount repayable before treating any offer as a good deal.