Question 1

What RV types can be purchased with leasing?

Accepted Answer

Caravan leasing is available for all types of RVs, including campervans, traditional, hybrid and off-road caravans, and camper trailers. Leasing can provide a flexible solution for borrowers who want to upgrade to a newer model after a few years, or for businesses looking to use RVs for short-term projects or seasonal activities. Both new and used RVs can generally be leased.

Question 2

Who is eligible to lease a caravan?

Accepted Answer

If your business has an ABN and is intending to purchase the RV as a business asset, it may be eligible for all types of commercial finance, including caravan leasing. Eligibility is also dependent on the financial health of a business such as its credit history and revenue generation. Leasing is generally available for sole traders, partnerships, companies and other business structures.

Question 3

When do I own my RVs with caravan leasing?

Accepted Answer

After the operator has made all the monthly payments and settled the residual, or balloon payment, the lender will transfer ownership of the RV to the borrowing business. Until the final payment is made, the RV remains the property of the lender.

Question 4

With the lender owning the caravan under lease, what costs do I need to pay?

Accepted Answer

Throughout the financing term, the lender will retain ownership of the caravan. Throughout this time, the borrower will need to meet all the operational and maintenance costs associated with the RV, including registration, insurance, maintenance, servicing, and repairs.

Question 5

Are caravan lease interest rates fixed or variable?

Accepted Answer

Commercial credit is typically secured with a fixed interest rate which will remain unchanged over the term. Fixed rates ensure the monthly payments stay consistent, allowing businesses to plan their budgeting and financials.

Question 6

When do I need to pay a lease residual?

Accepted Answer

After the borrower has made the final monthly payment on their lease, a residual will need to be finalised. The residual, also known as a balloon payment, is a lump sum payment at the end of the lease term which helps to reduce the monthly payments during the lease. Borrowers can pay off their residual in full, extend or refinance the lease to cover the amount, or trade in the RV for a new lease.

Question 7

Are caravan lease payments a tax deduction?

Accepted Answer

Yes, caravan lease payments are tax deductible. Monthly payments with caravan leasing are treated as a business expense by the ATO and therefore are fully tax deductible. The deduction will apply to the entire amount of each payment, including both the principal and interest components. However, for the lease payments to qualify as a dedication, it is essential that the caravan be used for business purposes.

Question 8

How can I get caravan lease estimates before applying?

Accepted Answer

Borrowers are able to get an estimate on their caravan lease by using our online calculator. The calculator allows individuals to input the details of their caravan like the value, lease term and potential interest rates, and provides an estimate of the monthly payments and overall lease cost. By adjusting the residual, borrowers can observe how it will affect their lease payments.

The online calculator provides estimations. For more tailored and accurate insight, contact our Easy Finance brokers.

Question 9

What is needed to apply for caravan leasing?

Accepted Answer

A number of documents are required when applying for caravan leasing. These include, but are not limited to ABN, annual accounts and recent tax returns, identification, schedules for assets and liabilities, profit and loss statements, and bank statements.

Some lenders may also request information about the intended business use of the caravan, credit history, and any existing finance agreements.

Question 10

Can caravans under lease be rented out to customers?

Accepted Answer

Caravans that have been leased can be rented out or hired to customers. However, this can vary so it is important for a borrower to ensure their lease agreement permits their caravan to be used for rental purposes.

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