Camper Trailer Hire

Why it is such a good option

Camper Trailer hire, as opposed to purchasing one outright, is an increasingly popular choice for travellers and holiday makers. Two main reasons people consider camper trailer hire are:

  • Trying before you buy. With camper trailers costing as much as $60,000 or more, it is a good idea to hire one first and take it on a trip. This will give you a first hand experience of the set up, pack up and living conditions of the camper trailer lifestyle. Most people who have camper trailers swear by them and wouldn't swap them for quids, but they aren't for everybody.
It makes very good sense to try before you buy, and outlay all that money. It is a great way to avoid post purchase disappointment and to ensure you buy the product that suits you best.
  • Hiring a camper trailer when you need it as opposed to owning one, can work out significantly cheaper when all the costs are factored in.

Camper Trailer Hire Vs purchasing new

Depending on your needs and how often you will use your camper trailer, there is a very good argument, financially and practically, to simply hire one each time you go on holidays.

This may seem counter intuitive, but an examination of the facts may surprise. A very astute friend of ours, who every two years or so heads out to the Strezlecki Track, Flinders Ranges or places nearby, proved to us that camper trailer hire when you need it is a better option for a lot of people than purchasing one outright.

Let's assume the following and run some hypothetical figures on what it costs to keep a camper over a one year period and see how many weeks you could you hire a camper trailer for that amount of money:

Purchase price of a camper trailer of $40,000. Deposit interest rates of 6%

Effective cost to own a camper trailer for 1 year
Cost of money $40,000 @ 6% $2,400
Registration $250
Insurance say $450
Yearly maintenance say $300
Depreciation say average 5% pa $2,000
Yearly Holding Cost $5,400

$5,400 is a surprisingly large amount, and is based upon assumptions that can vary, but the principle will not change. Holding costs and running costs nearly always amount to more than we might first think.

Effective cost of money and depreciation are the big factors and are often overlooked.

The style of camper trailer in the above example would be available to hire for around $750 per week. That equals approximately 7.2 weeks of hire. I personally do not know many people who use their camper for 7 weeks per year.

More food for thought

If you have a mortgage, the effective rate applicable for the cost of money would be closer to 8% (assuming you put the $40,000 off your loan) and the equation would then end up at nearly 8.5 weeks hire.

It would be prudent to apply the above principles to any purchase you are considering to take into account the peculiarities of each situation. Obviously the cost of money and depreciation would be much lower if your are looking at purchasing a $10,000 camping trailer.

The main point here is that for a lot of people, camper trailer hire is the most cost effective way to go. At the end of the day, the more money you can save, the longer you can stay travelling this awesome country.

Hiring also gives you the advantage of always having a modern camper trailer at you disposal, as most hiring firms use only the later models. Most firms also have no real restrictions on where you take the trailer, basically saying if you can take your car there, you can take the camper trailer.

A final advantage of camper trailer hire is that the hassle and cost of equipment like camp chairs, plates etc are often included in the hiring price.

We hope this article has helped you to consider how to make your dollar go further and therefore expands your travelling horizons.







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