No Deposit Caravan Finance: Can You Get Approved?

No deposit caravan finance is available from several Australian lenders, with loans ranging from $5,000 to $100,000 or more on new and used caravans. Approval depends on your credit profile, income stability, and the caravan's resale value rather than the deposit itself. Skipping the deposit typically adds 0.5 to 1.5 percentage points to your interest rate, which on a $70,000 caravan over seven years adds roughly $3,000 to $8,500 in extra interest.

Why no deposit caravan loans are more common than you think

Australia's registered RV fleet hit 937,000 vehicles in 2025, a record, and the average new caravan now costs between $70,000 and $120,000 for a mid-range family tourer. At those prices, saving a 10% to 20% deposit means putting aside $7,000 to $24,000 before you even start looking. Many buyers with strong incomes and clean credit would rather finance the full amount and start travelling sooner. Lenders know this, and most non-bank lenders in the caravan finance space now offer no deposit options as standard for applicants who meet their credit and income criteria.

What no deposit actually costs you

The deposit question is really a cost question. A deposit reduces the lender's exposure, which earns you a lower rate. No deposit means higher risk for the lender, which means a higher rate for you.

Here is what the numbers look like on a $70,000 new caravan over seven years.

The gap between 0% deposit and 20% deposit is roughly $8,448 in extra interest plus the $14,000 deposit itself. But the monthly repayment difference is $267. For some buyers, that trade-off makes sense. For others, the deposit money is better kept in an offset account or emergency fund.

How lenders assess no deposit caravan applications

Without a deposit cushioning the loan, lenders lean harder on three things.

Credit history

A clean credit file is almost non-negotiable for no deposit caravan finance. Most lenders want a credit score above 600, and the better rates start at 700 or higher. Paid defaults older than two years are sometimes workable, but unpaid defaults or multiple recent enquiries will usually mean a deposit is required.

Income and employment stability

Lenders typically want to see 6 to 12 months in the same role, or two years of ABN history for self-employed applicants. The income threshold varies, but most lenders look for a minimum of $500 per week after tax. Casual or contract workers can qualify with longer employment history in the same role.

The caravan itself

This is where no deposit finance gets interesting. Lenders set their maximum loan-to-value ratio (LVR) based on the caravan's expected resale value, not its purchase price. If you are weighing up secured vs unsecured caravan loans, the secured option is what most no deposit finance is built on. A new Australian-built caravan from a recognised manufacturer holds value better than an entry-level import, and lenders price accordingly.

Entry-level imported caravans can lose 30% to 40% of their value in the first two years. A lender looking at a $25,000 import might only value it at $15,000 to $17,500 within 24 months. If you default, the lender recovers less. That risk is either priced into a higher rate or requires a deposit to bridge the gap.

Premium Australian-built caravans from brands like Jayco, New Age, or Kokoda hold value more predictably, making lenders more comfortable with 100% finance.

When no deposit caravan finance makes sense

Skipping the deposit is not automatically the wrong move. It makes sense in specific situations.

You have strong cash flow but low savings. A dual-income household earning $150,000 combined with $3,000 in savings and no debt is a strong applicant. Lenders stress-test your repayments at around 3% above the loan rate, so on a $70,000 no deposit loan at 8.5%, they check whether you can handle repayments at roughly 11.5%. If the answer is yes, the deposit matters less than your serviceability.

You want to keep your cash liquid. If you have $15,000 in savings but would rather keep it as an emergency buffer or in an offset account against your mortgage, financing the full caravan amount can be a rational choice. The interest cost is the price of liquidity.

You are buying new from a dealer. New caravans from authorised dealers are easier to finance at 100% LVR because the lender has clear asset valuation backed by manufacturer pricing. Private sales and older vans are harder without a deposit because lenders often discount the purchase price by 10% to 15% when setting their own valuation.

When you should put a deposit down

No deposit is not always the right call.

The caravan is used or older than five years. Lenders reduce maximum LVR on older assets. A 2018 caravan with 50,000 km might only qualify for 80% LVR, making a deposit mandatory rather than optional.

Your credit score is below 650. Below this threshold, no deposit options thin out quickly. A 10% to 20% deposit can unlock access to lenders and rates that would otherwise reject you outright.

The purchase price is under $15,000. At lower values, the interest rate premium on no deposit finance eats a larger share of the total cost. On a $10,000 loan, the difference between 7% and 9% over five years is about $560. Small in dollar terms, but large relative to the asset value.

You are buying a high-depreciation import. If the caravan is likely to lose 30% to 40% in two years, a deposit protects you from going underwater, where you owe more than the caravan is worth. Being underwater limits your ability to sell, trade, or refinance.

How to strengthen a no deposit application

If you are going in without a deposit, stack the deck in your favour.

Get your credit report first. Check for errors, close unused credit cards (a $5,000 limit reduces your borrowing capacity by $5,000 to $7,500 even if the balance is zero), and avoid new credit enquiries in the 90 days before applying.

Show stable income documentation. Three months of payslips, two years of tax returns for self-employed, and bank statements showing consistent income patterns. Applicants with 12 months or more in the same role are significantly more likely to be approved than those under six months, particularly for 100% LVR loans.

Choose the right caravan. New, Australian-built, from an authorised dealer is the easiest combination for 100% finance. If you are set on a used or imported caravan, expect to need some deposit.

Use a finance broker. Different lenders have different LVR policies. A broker with access to 50 or more lenders can match you with the one whose policy fits your situation, rather than you applying blind and collecting enquiries on your credit file.

This article is general information only and is not financial advice.