Caravan Ownership vs Hiring Options

Buying a caravan is a big decision. For many Australians, it represents flexibility, independence and living the Australian dream. But it’s also a significant financial commitment – and one that doesn’t suit every stage of life equally well.

The question isn’t simply “Can I afford a caravan?”
It’s “Does owning one make financial sense for how often I’ll actually use it?”

This article breaks down the real costs of caravan ownership over time and compares them with hiring, so you can make a decision that stacks up both practically and financially.

5. This information is general in nature and is for information purposes only. It is not financial advice.

Owning vs Hiring: What’s the Difference?

There are two common ways people travel with caravans, and each comes with different trade-offs.

Owning a caravan

Ownership gives you:

• A consistent, familiar setup
• The ability to travel when it suits you
• No reliance on availability during peak periods

It also means:

• A large upfront purchase
• Ongoing costs regardless of use
• Responsibility for storage, maintenance and resale

Hiring a caravan

Hiring offers:

• Pay-only-when-you-travel costs
• No depreciation or resale risk
• No storage or maintenance responsibilities

But:

• Costs can add up for longer trips
• Choice may be limited in busy periods
• You don’t have a fixed setup

Neither option is inherently better — the right choice depends on usage.

The Costs People Usually Allow For

Most buyers focus on:

• Purchase price
• Registration
• Insurance

These are important, but they don’t tell the full story.

The Costs That Often Get Missed

Some of the most significant costs of ownership are ongoing and easy to underestimate:

• Depreciation: Even well-kept caravans lose value over time
• Storage: Particularly relevant for metro households
• Maintenance: Tyres, brakes, seals and bearings age whether you travel or not
• Opportunity cost: Capital tied up in a caravan isn’t available elsewhere

These costs continue in quieter travel years.

A Typical Ownership Scenario

Let’s look at a realistic example.

• Used caravan purchase price: $50,000
• Ownership period: 5 years
• Usage: 4–8 weeks per year
• Sale method: dealer resale

After five years:

• Estimated resale value: ~$20,000
• Depreciation: ~$30,000
• Insurance, registration, maintenance and storage: ~$18,000

Total ownership cost:
👉 ~$48,000 over five years

This figure provides a more accurate basis for comparison than purchase price alone.

Cost Per Week of Use

When total ownership costs are spread across actual travel time, the difference between ownership and hiring becomes clearer.

Weeks used per year	Total weeks (5 yrs)	Cost per week
4 weeks	20	~$2,400
6 weeks	30	~$1,600
8 weeks	40	~$1,200
12 weeks	60	~$800
16 weeks	80	~$600

By comparison, caravan hire typically costs:

• $1,200–$2,000 per week
• With no storage, depreciation or resale considerations

Usage is the key variable.

Why Life Stage Matters

The same caravan can make financial sense for one household and not for another.

Working Australians

• Annual leave generally limits travel to 4–6 weeks per year
• Caravans often sit unused for extended periods
• Storage is more likely to be paid
• Cost per week remains relatively high

For many working households, hiring — or short-term ownership — is often more economical.

Retirees

• Flexible schedules allow 10–20+ weeks of travel per year
• Caravans are used more consistently
• Storage is often available at home or regionally
• Cost per week drops substantially

Ownership tends to make more sense when time is available to use the asset regularly.

A Simple Decision Checklist

Buying a caravan may make sense if:

• You expect to travel 8–10+ weeks per year
• Storage is inexpensive or available at home
• You plan to keep the caravan long-term
• You’re comfortable managing maintenance and resale
• You value a consistent setup
• You’re retired or semi-retired

Hiring may be the better option if:

• You travel 4–6 weeks per year or less
• You’re working full-time
• Storage would be costly
• You prefer flexibility
• You want predictable, short-term costs

Is There a Middle Option?

Many people take a more measured approach:

• Hiring first to understand what suits them
• Buying second-hand and selling privately after a few years
• Choosing a lower-cost or smaller setup initially

These options reduce financial risk while still allowing regular travel.

Final Thoughts

Caravans can be a great way to travel – but they’re best suited to people who have the time to use them regularly.

For frequent travellers and retirees, ownership can make good financial sense.
For those still balancing work and limited leave, hiring often provides better value and flexibility.

The right decision is the one that fits your actual travel patterns, not just your intentions.

5. This information is general in nature and is for information purposes only. It is not financial advice.

Still Considering Caravan Finance?

If you’ve decided that owning a caravan makes sense for your situation, it’s worth understanding your finance options.

Money3 offers caravan finance options up to $75,000 – whether you’re upgrading or buying your first caravan.