Common Trailer Loan Mistakes (and How to Avoid Them)
Most trailer loan problems are avoidable. These are the mistakes we see most often, and the simple fix for each.
1. Budgeting for the trailer, but not the setup
Rego, insurance, a brake controller, towbar upgrades and gear can add thousands. Work out the full cost before deciding how much to borrow.
2. Looking only at the weekly repayment
A low weekly figure can hide a long term and high total cost. Check the comparison rate and the total you'll repay.
Want to talk it through? Send a free enquiry and we'll pass it to a broker who does trailer loans every day. Enquiring doesn't affect your credit score.
3. Applying at several lenders at once
Each application can add an enquiry to your credit file, and lots of them in a short time can count against you. One well-prepared application is better.
4. Buying a trailer your car can't tow
Check towing capacity, towball limits and the trailer's ATM first. See our towing guide.
5. Skipping the PPSR check
Buying a trailer with finance still owing can mean losing it. A PPSR search costs a couple of dollars.
6. Not mentioning credit issues
A past default discovered halfway through an application often ends in a decline. Disclosed upfront, it can be worked around.
7. Stretching the term too far
If you'll upgrade in three years, a seven-year loan can leave you owing more than the trailer is worth when you sell.
8. Paying a deposit to an online seller you haven't met
This is one of the most common scams. See our private sale guide.
9. Not checking early payout terms
If you might sell or pay it off early, check whether there's a fee before you sign.