THE BEST WAYS TO FINANCE YOUR RV

Like almost all loans, terms vary from lender to lender. One of the most critical factors in determining RV loan terms is the amount of money borrowed. Smaller loans typically have a shorter loan period of around 4 years. Those purchasing a more expensive vehicle may be eligible for a loan term of 12 to 20 years or more.

Interest rates are determined by a combination of factors. Lenders will consider the loan amount, loan duration, and the buyer's creditworthiness, among other lender-specific factors. Rates typically start at just a few percent and can reach 20% or more for those with poor credit. Individuals seeking an RV loan should take some time to clean up their credit to try and secure a higher score before seeking financing for their recreational vehicle.

TYPICAL MISTAKES WHEN GETTING AN RV LOAN

There are a few mistakes that first-time RV buyers commonly make. By keeping these mistakes in mind throughout the purchasing process, you can ensure you get the best possible loan for your needs and budget.

TAKING THE FIRST OFFER YOU RECEIVE

While getting approval for RV loans can be exciting, instantly accepting the first offer from the lender can be a big mistake. Shop around with several different lenders to get the best possible terms for your loan. Disregarding RV depreciation, many buyers get so excited about the lower payments of a long-term loan that they overlook the depreciation of the RV they're purchasing. You may not be able to get the trade-in value you hoped for if you don't consider the vehicle's depreciation.

NOT NEGOTIATING WITH THE SELLER

In most cases, sellers include a considerable markup in the price of an RV. This leaves room for negotiation when determining the price of the RV you're purchasing. Work with the seller to reduce the listed price of the vehicle before getting a loan to ensure you get the lowest price and payments possible.

NOT CONSIDERING YOUR OVERALL BUDGET

Owning an RV extends beyond your loan repayment amount. Consider maintenance, fuel, and other costs you might incur when using your RV and factor them into your budget. It would be a parody to end up making payments on an RV and not having enough funds in your budget to enjoy it.

FEATURES OF THE BEST RV LOANS

While the best RV loan may not be exactly the same for every buyer, there are specific features you should look for when shopping for RV loans. Be sure to carefully read the documentation and ask questions to be certain of what to expect and what is expected of you from your lender.

NO PREPAYMENT PENALTY

Make sure you can make extra payments on your loan and pay off the principal early without incurring a penalty. Some lenders will charge fees when you pay off the balance before the final payment date to ensure they can collect the interest they expect from your loan.

NO HIDDEN FEES

Examine loan documents and terms closely to ensure you won't have any unexpected fees, such as processing fees, annual fees, or other fees that may impact your budget and that you might not have anticipated. While some fees may be standard, unscrupulous lenders will add fees to increase their profits, which can be challenging for some buyers to afford.

This calculator is for general informational purposes only and to provide an approximate estimate based on the information you provided. You should not base your decision solely on this estimate. Please note that title, registration, taxes, and other fees, as well as personal circumstances such as employment status and personal credit history, have not been taken into account in the calculations. Personal circumstances can have a significant impact on the interest rates to which a person may be eligible. Therefore, we cannot guarantee and do not warrant the accuracy or applicability of the estimates produced by this calculation, and the results of its use should be considered hypothetical, for illustrative purposes. At the appropriate time, we recommend relying on information about actual interest rates and payments provided to you by your broker or lender.