Hire vs Buy

We have provided a table below which gives you some comparisons of the annual costs associated with hiring a caravan or camper, compared with the annual costs associated with purchasing your own caravan or camper.

While this table should be used as a guide only, we believe that many Australians don’t get the use out of their caravans and campers due to work commitments, overseas travel and many other reasons.

By hiring a caravan or camper, you get the benefit of choosing a van to suit your current lifestyle, while also having the benefit of not having a large amount of money tied up in an asset that you may only use 1-2 times per year and can take up to 12 months to sell.

 $50,000 new caravan

Buy Hire
Storage  $    800.00 2 week holiday at christmas  $ 1,800.00
Insurance  $    900.00 Long weekend away  $    420.00
Service/Maintenance  $    400.00 1 month holiday up north  $ 2,100.00
Registration  $      50.00 Total per annum    $ 4,320.00
Interest on Loan at 6%  $ 3,000.00
Depreciation at 3%  $ 1,500.00
Total per annum    $ 6,650.00  
 
In 5 years, you have paid over $30,000 in costs and still have a $50,000 loan on a 5 year old caravan that may not suit your lifestyle.   After 5 years of hire, you will have no loan and are still hiring a brand new caravan to suit your current lifestyle and you have an extra $11,650 in your pocket.

$25,000 new camper

Buy Hire
Storage  $    800.00 2 week holiday at christmas  $ 1,300.00
Insurance  $    450.00 Long weekend away  $    300.00
Service/Maintenance  $    350.00 1 month holiday up north  $ 1,350.00
Registration  $      50.00 Total per annum    $ 2,950.00
Interest on Loan at 6%  $ 1,500.00
Depreciation at 3%  $    750.00
Total per annum    $ 3,900.00
In 5 years, you have paid almost $20,000 in costs and still have a $25,000 loan on a 5 year old camper that may not suit your lifestyle. After 5 years of hire, you have no loan and are still hiring a brand new van that suits your needs and you have an extra $4,750 in your pocket.