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RV Financing

Many Recreational Vehicle Loan Options – One is Right For You!

recreational vehicle loan  paperworkWhile a few buyers pay cash for their RVs, most will be looking carefully at the recreational vehicle loan choices available to them. Fortunately, there are several options to fit a variety of buyers. If you have good credit, less than perfect credit, or even bad credit, a good lender will work hard to secure the best possible RV loan package for your situation. When searching for a lender, choose one with a lot of experience. Apply and find out what you qualify for.

There are various terms available for RV loans. The length of the loan can range from 8 to 20 years, depending on the value of your recreational vehicle. Generally speaking, the higher the value of the RV, the longer the terms of your loan may be. Typically, your down payment will be anywhere from 10 to 20 percent (although loans with 20-year terms frequently require a 25% down payment). Your credit history and the price of the RV you are purchasing are often factors in determining the size of your down payment.

Recreational vehicle loan interest rates are lower than ever and drastically affect the size of your monthly payment. Be sure to find a lender who offers excellent rates. Interest rates are low right now, so don’t accept high rates.

Looking Beyond Rates and Terms…

Another huge benefit to a recreational vehicle loan, unlike automobiles, is that most RVs are treated as a second home, and your loan will carry all the advantages of that: the interest is tax deductible. In order for your recreational vehicle loan to qualify as a home equity loan, your new or used motor home, travel trailer, or fifth wheel must have basic sleeping, cooking and toilet accommodations. Fortunately, this applies to almost all motor homes, travel trailers, or fifth wheels for which you would be obtaining a recreational vehicle loan.

interior toy haulerKeep in mind, an RV loan isn’t just for motor homes on a dealer’s lot. Even private-party contracts can be financed with a recreational vehicle loan, which greatly increases your options. But whether you buy from a dealer or from a private party, be sure to have your RV inspected, and don’t pass up extended warranties. Since you will be financing your purchase for many years, you want to make sure you have solid coverage, and repairs can be quite costly. Be a smart shopper and take advantage of all the benefits an extended warranty has to offer. Keep up on the maintenance (just good common sense, in addition to making sure your warranty isn’t voided) and a quality RV will still be in good condition for many, many years after the life of your loan. A knowledgeable dealer will be able to help you find the RV that will meet your needs for years to come, and finding the right recreational vehicle loan will ensure your purchase will be a happy one.

Other Things to Consider…

Once you explore your options, you don’t need to choose an RV before you get approved for a loan. A great way to increase your buying power is to obtain pre-approval on your recreational vehicle loan. Pre-approval sends a message to the seller that you are serious about your purchase, and will give you leverage in negotiating a better price. And since you’ll already know what you qualify for, you’ll know what you can afford, and that’s a comfort to any buyer.

Before you seek financing for your recreational vehicle, it may be a good idea to sit down and determine how much of a monthly payment you are willing to make. Don’t just guess. Look at your budget and make sure you will be comfortable with the monthly payment you decide on. Keep in mind the additional expenses of traveling, including gas, and the money you’ll want to spend once you reach your destination. Save money in your budget for admission to that great theme park you’ve always wanted to visit (or t-shirts to send home to the grandchildren!)

Remember Why You’re Seeking RV Financing to Begin With…

RVs offer a freedom and lifestyle unlike any other, and with so many rates and terms available, an RV loan is an easy way to purchase an RV and join the recreational lifestyle that is a dream for many.

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