Boat & RV Loan Calculator Australia

Calculate repayments for your leisure vehicle. Financing a boat, caravan, or jet ski in Australia often carries different interest rates and terms compared to standard car loans.

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Leisure assets usually have higher rates than cars.

Estimated Repayment

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Amount Borrowed $0
Total Interest Paid $0

Financing Leisure Assets in Australia

Buying a boat, caravan, or jet ski is an exciting lifestyle choice for many Australians. However, banks treat these 'leisure assets' very differently to standard commuter cars when it comes to lending risk.

Why are interest rates higher?

A car is considered a necessity for getting to work, making it a priority payment for most Australians. A boat or caravan is considered a luxury item. In times of financial hardship, borrowers are much more likely to default on a boat loan than a car loan. To offset this higher risk, Australian banks and specialized marine lenders charge higher interest rates for leisure assets.

Secured Marine Finance vs Unsecured Personal Loans

Like car loans, you can get a secured loan where the boat or caravan acts as collateral. This will secure you the lowest possible rate, but the lender will register an interest on the PPSR, and they usually require the asset to be comprehensively insured at all times.

However, lenders have strict rules on what they will secure. A brand new $80,000 fibreglass cruiser is easy to secure. A 20-year-old aluminium runabout with an old two-stroke engine is almost impossible to secure. For older leisure assets, you will likely be forced to take out an unsecured personal loan, which carries a significantly higher interest rate.

Longer Loan Terms

Because caravans and large boats are expensive and depreciate slower than cars, some specialist Australian lenders offer loan terms up to 7 years (and occasionally 10 years for very large marine assets). While a 7-year term lowers your monthly repayment, it drastically increases the total interest you will pay.

Related Calculators

Car Repayments Novated Lease Balloon Payments

Learn more about car finance at ASIC MoneySmart.

10 Frequently Asked Questions

1. What is a balloon payment?
A balloon payment is a large lump sum due at the end of your car loan term. It reduces monthly repayments but increases total interest paid.
2. Secured vs Unsecured car loans?
Secured loans use the car as collateral and offer lower rates. Unsecured loans do not tie the car to the loan, but have higher interest rates.
3. What is a novated lease?
A novated lease is an arrangement between you, your employer, and a finance company where loan repayments and running costs are paid from your pre-tax salary.
4. What is a PPSR check?
The Personal Property Securities Register (PPSR) check ensures a used car doesn't have money owing on it before you buy it.
5. Are dealer finance rates better?
Dealer rates like 1% often hide costs in the car's purchase price. Always compare the total cost against a bank loan.
6. Can I pay off my car loan early?
Yes, but check for early exit or break fees in your contract, especially for fixed-rate car loans.
7. Does the comparison rate matter?
Yes, it includes upfront fees and monthly account keeping fees, showing the true cost of the loan.
8. What is Fringe Benefits Tax (FBT)?
FBT applies to novated leases, but you can offset it using the Employee Contribution Method (ECM).
9. How do trade-ins work?
A trade-in reduces the total amount you need to borrow, thus reducing your monthly repayments and total interest.
10. Should I finance over 3 or 5 years?
A 3-year term costs less in total interest but has higher monthly payments compared to a 5-year term.