Applying for a Used RV Loan? Make some notes...
Several RVers opt to purchase a used RV over a brand new one. Financing the purchase through a used RV loan will lead to a satisfying buying and an overall positive RVing experience. A used RV loan is an investment that will reap benefits throughout the life of the RV. The buyer will establish equity and credit to help in future trade-ins and purchases.
Buyers in the market for a used recreational vehicle and a used RV loan should do an infinite amount of research. The process of purchasing any type of RV can be a whirlwind adventure-especially as a first time buyer. Making the decision to finance an RV when purchasing (used or new) will force the buyer into managing his/her RV finances so that a reasonable purchase price is achieved.
Each step to picking out the perfect RV relies on smart buyer decisions. The used RV shopper should attend RV conventions and trade shows, as well as talk to other RVers for their opinions and advice on floor plans, amenities, different RV styles and the overall RV experience.
When shopping for a used recreational vehicle, the older the make and model, the harder it could be to find financing. It is common for those in the market for a used recreational vehicle to focus on finding a “newer” (no more than 3-5 years old depending on lender) used RV.
The application process for a used RV loan does not vary too much from that of a loan for a brand new motor home. It is common to apply online for pre-approval. A used RV loan requires a credit check, W40 forms from the past few years, as well as current employment references. A high quality loan officer will work with the buyer in locking down the lowest interest rate. However in the purchase of a pre-owned motor home through the financial comfort of used RV Loan, it is common for the lending source to send an inspector out into the field (if the RV is accessible) to assess the recreational vehicle. There also occasions where a finance company asks the buyer to put up his/her savings account as collateral - buyer beware.
Something a buyer when applying for a used RV loan should note is the depreciation factor on a new RV vs. a used one. Depreciation is the total value of the brand new RV as it sits immobile on the dealer’s lot and its drastic immediate reduction in the total value of the vehicle as soon as it is driven out of the lot. With a pre-owned motor home loan, the buyer does not have to worry so much about depreciation and its affect on the loan.
A used RV loan will reflect the buyer’s individual financial goals and situation. The lender will evaluate what is important to the applicant in long-range and short-term plans, so the used RV loan offered will be enticing and hard for the buyer to decline. This customized proposal will match the needs of the buyer with an appropriate pre-owned recreational vehicle loan. The interest rate will be established. The guiding financing terms will be executed. Typically as long as the buyer’s credit is worthy of paying the monthly amount, no matter how big or small the dollar amount, the buyer will be funded on some sort of level. Approval for a loan to purchase a used RV will lead the buyer on the uphill track of establishing a good and strong credit history, which can in turn lead to many financing and refinancing opportunities down the happy road of RVing.
Read More Helpful RV Financing Articles:
Used RV Loan Means Lower Rates Than A New RV Loan
Refinance Your RV and Save Money
Use An RV Calculator And Now Your Payments Now
Are Warranties Worth The Time And Money?
What If I Need Financing But Have Bad Credit?