Should I use a finance broker or arrange caravan finance myself?
Most caravan buyers sit down at the dealership's finance desk thinking they're getting the market rate. In reality, they're getting the best rate available from whichever one or two lenders that dealership works with. A broker, by contrast, is accredited across a panel of 30 to 70+ lenders, and is legally required under the National Consumer Credit Protection Act (NCCP) to act in your interest. Both the dealer and the broker earn commission when your loan settles, paid by the lender. The difference is what's behind the quote. On a $50,000 loan, more lenders competing for your business can translate to thousands of dollars over five years.
How does dealer finance actually work, and who is it working for?
Large manufacturers like Toyota and Mazda have their own captive finance arms, and many dealerships work primarily with those. Independent caravan dealers typically have arrangements with a few preferred lenders. In either case, the rate you're quoted is set by that lender, and the dealer earns a fixed commission when the loan settles.
It's worth knowing this wasn't always the structure. Before ASIC banned flex commissions in November 2018, dealers in the car finance market could set the interest rate within a permitted range, and their commission increased the higher the rate they charged. ASIC found this was producing unfair outcomes, with consumers paying more than necessary. Under current rules, lenders set the rate and dealers cannot earn more by quoting higher. The market is more transparent than it was.
What hasn't changed is the access problem. A dealership working with few lenders can only show you what those lenders offer. If their rates don't work for your situation, there's no alternative on the table. That's where the real gap is.
What can a broker access that the dealer can't?
A finance broker's value isn't just in negotiating a rate. It's in access and their ability to help write your loan. Many specialist caravan and leisure lenders are panel-only. They don't deal directly with the public, and they're not in the dealer's finance book. The only way to reach them is through a broker who's accredited with them.
This matters most when your application is non-standard: an older van, a newer ABN, a higher loan amount, multiple loans, or a credit history that isn't clean. A bank will often decline in these situations. A specialist non-bank lender on a broker's panel frequently won't, and because leisure asset finance is their core business, their rates tend to be sharper too. The finance broker will help write your loan in a way that increases the chances of approval.
Panel size matters. A broker with 10 lenders is a very different proposition to one with 70. If your situation is straightforward, this may not matter much, because you can just go to a bank. If it isn't, panel depth can be the difference between approval and rejection.
The best way to assess a broker isn't to quiz them on panel size, as most publish that on their website. What matters more is how they engage with your situation. Tell them what you're buying, your deposit, how your income is structured, and whether there's anything in your credit history worth flagging. A good broker asks just as many questions back before recommending anything.
When they do make a recommendation, you're entitled to ask: which lenders did you consider, why this one, and can you provide a written quote showing the rate, fees, and loan structure? A broker who can't explain their reasoning clearly is worth being cautious about. Note that for commercial asset finance the documentation looks different from a consumer home loan, but the broker should still be able to walk you through the key numbers. Our guide on what to ask your finance broker covers the right questions in more detail.
Some boutique brokers also have relationships with specific dealerships and can help you find the right vehicle, not just the right loan. Just tell them what you need.
Does using a broker cost more than going direct?
Both dealers and brokers earn a commission from the lender when your loan settles. Neither charges you directly in most cases. The difference is the panel size behind that commission. A dealer's commission comes from one of their two or three preferred lenders. A broker's commission comes from whichever of their 30 to 70+ panel lenders they place your loan with. That's a structure that creates a real incentive to find the right fit for you, not just place the loan. There is usually a fee for the broker's help in writing and submitting your loan application.
You should still ask your broker upfront exactly what their fee policy is. Transparency on this is a trust signal. Many will only charge you once the loan is approved. And before engaging anyone, confirm they hold an Australian Credit Licence (ACL) or operate as a credit representative under a licensee. You can check this for free on ASIC Connect at asic.gov.au. No ACL number, no deal.
When does it make sense to get broker pre-approval before visiting a dealer?
Pre-approval from a broker before you walk into the dealership gives you something more valuable than just a quote. It gives you a benchmark. When the finance manager quotes you a rate, you can compare it directly against what your broker has already found. That's a negotiating position most buyers never have.
It also removes the time pressure that works against you at the point of sale. Once you've found the van you want, the temptation is to accept whatever terms are on the table so you don't lose the vehicle. Pre-approval means the hard part is already done.
You can use our loan repayment calculator to model different rate and term scenarios before you talk to anyone. And when you're ready to speak to someone who knows the Victorian market, find a specialist broker who can pull quotes from their full panel.
Frequently Asked Questions
Does using a finance broker cost me anything? In most cases there's no upfront cost, and no fee unless the loan is approved. Brokers are paid a commission by the lender when your loan settles, similar to how dealer finance works. Ask your broker upfront exactly how they're remunerated so there are no surprises.
How do I know if my broker is properly licensed in Australia? Any broker arranging credit in Australia must hold an Australian Credit Licence (ACL) or operate as a credit representative under a licensee. You can verify this for free on ASIC Connect at asic.gov.au. If they can't provide their ACL number, don't proceed.
Can I use a broker after I've already visited a dealership? Yes. You're under no obligation to accept dealer finance, and broker pre-approval can be obtained at any stage. But always confirm with them how long the offer stands for. If you've been quoted a rate, a broker can tell you whether it's competitive before you sign anything.
What if the dealer says their rate is the same as a broker's? Advertised rates can look similar, and they're often designed to. The real difference is what's behind the number: monthly repayments, dealership management fees, and any other hidden charges. A dealer's best rate comes from one or two lenders and will usually include a monthly fee on top of your repayment. While the initial rate might look competitive, you could end up paying more over the loan term. A broker matches their recommendation to your actual situation from a larger panel of lenders, and typically charges a one-time fee to write your loan. Over a three to seven year repayment term, that often works out to less than what a dealership charges overall. Ask both sides for a written offer showing the full cost: rate, fees, and total repayable amount over the loan term. That's the only honest comparison.
Why doesn't my broker show me multiple lender options? Two reasons. First, every formal application creates a hard enquiry on your credit file. Multiple enquiries in a short window signal financial distress to lenders and can reduce your chances of approval. A good broker compares your profile against their panel offline first, then submits to one lender they're confident will approve. Second, asset finance brokers are not legally required to show you alternatives in the way mortgage brokers are. But they should still be able to explain which lenders they considered, why they chose this one, and provide a written quote with the rate and fees. If they can't explain their reasoning, that's worth pushing back on.
Can a broker help me find the right vehicle? Not all brokers, but boutique specialists with dealership partnerships can help you find the right vehicle as well as the right loan. Broker Registry can help match you with a broker who offers this service if it's something you need.
This article is general information only and does not constitute financial advice. For advice specific to your situation, speak to a licensed finance professional with one of our listed brokers or visit ASIC's MoneySmart website.