Like any vehicle, a caravan needs to be registered, and registration costs vary depending on the state or territory you’re in and the size and weight of the van. It’s a recurring annual expense that’s easy to overlook when you’re focused on the purchase price. Insurance is equally important. Comprehensive caravan insurance typically covers accidental damage, theft, storm damage and third-party liability. Premiums will depend on the value of the van, how often you use it, where you store it and your claims history. If you plan to travel extensively, it’s also worth checking whether your policy covers you for on-site and in-transit damage, as policies can vary considerably on this point.

Not every vehicle is suitable for towing a caravan, and matching your tow vehicle to your van’s weight rating is both a legal requirement and a safety consideration. If your current vehicle isn’t up to the job, upgrading to one with a higher towing capacity could be a significant additional cost.

Even if your vehicle is already suitable, towing a loaded caravan increases fuel consumption considerably. Depending on the size of your van and the distances you travel, fuel costs can add up quickly, particularly on longer trips through regional Australia. Additional towing accessories such as weight distribution hitches, brake controllers and towing mirrors may also be required, and these can add several hundred to several thousand dollars to your setup costs.

Caravans require regular servicing to stay safe and roadworthy. Annual servicing typically includes checking the brakes, bearings, tyres, gas systems, electrical connections and water systems. The cost will vary depending on the age and condition of the van and which service provider you use. Beyond routine servicing, wear and tear on tyres, seals, awnings and appliances is part of ownership. Older vans, can require more frequent attention, and repairs to things like roof leaks or damaged annexes can be costly. Setting aside a maintenance buffer each year is a sensible approach, particularly if you plan to use the van regularly or take it off sealed roads.

Unless you have space at home to store your caravan securely, you’ll likely need to factor in storage costs. Covered or undercover storage facilities offer better protection but come at a higher price. Outdoor storage is more affordable but leaves the van more exposed to the elements over time. When you’re out on the road, caravan park and campsite fees are another regular expense. Powered sites at popular parks in peak season can be surprisingly expensive, and costs add up quickly on longer trips. Free camping and low-cost options are available for those willing to venture further off the beaten track, but it’s worth being realistic about what your travel style will cost when mapping out your budget.

Most buyers find that once they take ownership of a caravan, there’s a list of extras they want to add. Solar panels, lithium battery upgrades, water tanks, satellite systems and outdoor furniture are just some of the additions that can significantly increase the true cost of ownership beyond the purchase price. Some of these additions are practical necessities for extended travel or off-grid camping. Others are upgrades that make the experience more enjoyable. Either way, it’s easy to spend thousands on accessories in the first year of ownership. Before you borrow, think about what you’ll realistically want to add to the van, and whether it makes more sense to factor those costs into your loan from the outset rather than funding them separately later.