Costs of Caravan Ownership to Budget For

Your caravan is the escape pod that comfortably accommodates your break free from the norm. It’s a mobile base for fun and adventure. Just like most things in life, you can keep it simple or fill your life with gizmos, gadgets and accessories that often cost plenty and blow the travel budget. And on top of that, there are unexpected costs that many new caravan owners don’t think about!

We’ve put together the research for you with this list of some of the expected and unexpected costs of owning a caravan, to help you save money whilst enjoying your wanderlust! We wouldn’t say these are necessarily hidden costs, but they’re good to consider before your caravan purchase.

1. Caravan Maintenance and Repairs

Of course any repair service will cost money, but caravan maintenance costs can be minimised with a proper service regime. You can do most of the work yourself if you are a bit of a handyman, saving professional service costs. After all, there’s really nothing overly complicated about most caravan trailers.

All services start with a complete inspection, paying particular attention to loose components and fittings, water leaks, structural faults, locking mechanisms, securing devices, and recommended service intervals for items such as gas bottles and fire extinguishers. If you’re a caravan owner who travels a lot, you’re likely to take note of these things as they happen on road trips.

But it’s the trailer that gets you there and back safely and it’s the moving components that require the most attention. Wheel bearings and brakes and trailer lighting are the key components along with the condition of axles, springs, airbags, shock absorbers, in fact, all moving parts. Caravan owners stay on top of maintenance for these, for used and new caravans alike!

Remember your wheels and tyres, too. A collapsed rim or shredded tyre can cause enormous damage and cause horrendous safety concerns. Check your spare and occasionally lubricate and re-tension your wheel nuts. Also, remember to check your service equipment such as jacks and wheel braces! Again, regular maintenance is just as important to anticipate when buying a caravan, just as it is with a new family home.

2. Caravan Storage

You may be fortunate enough to have the space at home to store your caravan, which will save on storage costs. Some may even have a garage, carport or even a factory to protect your investment. Others may prefer to simply park the van in the open. After all, caravans are supposed to be waterproof, aren’t they?

Well, the answer is yes, they are; however, sun, salt, dust, wind and weather conditions will eventually degrade the waterproofing, especially where external roof sheets may join, and around hatches, aerials, air conditioners, solar panels, and other fittings. This is something many caravan owners don’t realise until it’s too late, and contributes to how fast caravans depreciate.

A caravan cover is a good investment in protection, but it’s not the be-all and end-all. Caravans should be stored in a completely clean and dry condition. You don’t want a dirty grill inviting vermin who will eat the leftovers and start on the upholstery and caravan structure itself! Proper pest-proofing is recommended for all caravan storage scenarios.

Mold is a constant foe. Ensure everything is totally dry for storage and leave the fridge/freezer turned off and doors slightly open for ventilation. Even water accumulated in waste drains, shower recesses etc can cause mold. The cure is ventilation.

Another answer is paid storage, yet you will certainly pay plenty for secure, accessible undercover options. No matter where you store your van, regular checks and ventilation are the key

3. Caravan Insurance Costs

In my opinion, caravan insurance is a must, particularly for any caravan valued at perhaps $10-15K and over. When you’re planning and considering additional costs above the purchase price, put insurance premiums on your list. Prices will vary dramatically according to the regular storage options. There are some excellent locking devices available nowadays however pay strict attention to the insurance companies pre-requisites. It’s no good paying out all that money in security only to find you do not satisfy their conditions.

4. Fuel and Road Costs

Fuel is a major cost to travelling caravanners. Fuel consumption will increase dramatically no matter your towing vehicle due to wind resistance, load etc. The added fuel consumption may be up to 30-40% in some cases, and weather conditions such as wind will also have an effect.

If you are planning an extended vacation towing your caravan it is a good idea to budget your fuel spend before you go by tracking your average consumption and downloading one of the many fuel price Apps available on the net. You will often find incredibly high fuel prices, particularly in remote regions. However fuel prices will regularly vary considerably town by town and state by state.

These aren’t exactly hidden costs, but in my experience, they’re some big ones people miss before owning a caravan.

5. Holiday Park and Campground Fees

Whilst the quality of most caravan and camping parks around the country have increased dramatically, so too have the costs and often availability.

Most caravan/holiday parks now offer a range of sites from premium waterfront, ensuite, deluxe ensuite, powered, unpowered and other options with prices that vary accordingly. A basic unpowered site is often upwards of $40 per night with premium alternatives that can reach up to $100.00 per night, even more in peak periods. You will usually pay more if traveling with more than two people, and even pets are charged if allowed.

There are alternatives, such as farm and pub stays, free camps, and National and State Parks, but it’s still wise to book well ahead since these are well-known as an affordable option.

6. Caravan Accessories and Upgrades

After seeing the price of some caravan/holiday parks, plus the desire to experience more remote, self-contained destinations it is little wonder that many caravanners are turning to fully equipped off-road, and semi-off-road style options.

Modern power generation and storage have broadened the scope for many, with solar and other forms of power generation, large capacity batteries, including lithium options, low power requirements through LED lighting and efficient accessories, and complete BMS, Battery Management Systems to control your charge, storage and discharge levels.

Water storage is another prerequisite for caravanners with most modern presentations offering large storage capacities and water filtration equipment. Those wishing to venture into many camping grounds will need grey water and sewerage storage such as cartridge toilets.

Towing safety is greatly enhanced with sway management systems, efficient load-sensing braking, reversing cameras, and the like.

Then there are creature comforts that will greatly vary the price and ongoing cost of your caravan. Shade and awning options are almost essential in this sunburnt country, and many will say so is WiFi and television reception. Then there’s the ever-increasing cost of gas for fridges and cooking.

Yes, travel costs for caravanning have risen dramatically, especially if you want to take along, maintain and replace the creature comforts.

7. Combatting Depreciation

In the deep dark past before GST, dealers used to depreciate recreational products such as boats and caravans at losing the tax component (22%) plus 5% in the first year, and then a further 5% per year for around the next 5 years for goods maintained in good condition.

Times have certainly changed, especially since COVID and the resulting lack of availability, plus inflation maintaining resale prices for second-hand equipment. In fact, in many situations, many caravans gained value.  

However, that boom has ended, and most manufacturers have caught up with their extended forward order lists. In fact, the number of recreational vehicles and products returning to the second-hand market is considerable, creating competition and impacting resale prices.

Buying premium caravan brands and maintaining them impeccably is the key to retaining your resale value.

8. Licensing and Registration

Registration is an essential cost for caravan ownership. (provided you wish to tow on any roads that is!) Registration costs vary by state, so it’s a good idea to look up the specific registration fees where you’ll be.

For example at the time of writing the private registration cost in Victoria is $66.70 for all caravan/trailers. The cost in NSW is set on a sliding scale dependent on weight. It varies from $85.00 for a small caravan under 750kg and up to $838.00 for a caravan up of 4325-4500kg. Hence we recommending the actual costs in your own State and whether the cost includes third party insurance.

Compulsory Third Party (CTP) insurance is essential for road registered caravans. It covers personal injuries that you may cause to yourself or other people in the event that you’re involved in a car accident. In some states (Victoria, Tasmania, South Australia, Western Australia, the Northern Territory and the Australian Capital Territory), CTP is included in your registration cost, while in other states (Queensland and New South Wales) you must purchase this separately. 

You may also have towing restrictions on your driver’s license type, and this again varies between the States and size/weight and construction of the vehicle. We recommend checking these conditions before you travel!

Always ensure that your entire rig, including both the vehicle and the caravan, meets the towing regulations and legal requirements not only in your registered State, but also in the States you wish to visit. These regulations can vary, so care is required.

 9. Unexpected Wear and Tear

It’s pretty simple, really. The more you use your caravan, the rougher the roads, the longer the distance, and the level of care and maintenance will obviously affect the amount of wear and tear on your rig.

So will the type of travellers with kids and pets, which, unfortunately, increases the risks of unexpected damage. But stuff can happen anytime, especially since you heighten risk every time you leave home!

Extended travel in Australia’s harsh environments will also lead to higher wear and tear, especially on the undercarriage components, but also from abrasion, stone chips, and even degradation of door, window, and other seals.

10. Emergency Costs

Break downs and breakages cost money! We recommend the highest levels of breakdown insurance through your car club, and even then unplanned events can be financially crippling especially in remote areas.

It is always worth considering the level of your backup/emergency finances before leaving home.

Budgeting for Caravan Ownership

Your caravan and towing vehicle are the key to fulfilling many lifetime memories, but you don’t want them spoiled with unexpected caravan costs. Take the plunge – this life is not a dress rehearsal! But take the time to consider budgeting for unexpected costs so you can get on the road sooner and stay there.

If you are looking for guidance with caravan finance, please contact the friendly team of caravan finance specialists at Credit One. We can help with a secured caravan loan, private sale caravan loan, camper finance, and more! Try our caravan loan calculator to get started, or contact our team directly for a finance quote today. To get started with shopping, check out the great selection caravans for sale at Only Vans today.