Can you finance an RV? Here’s how
The pandemic has made traveling challenging, but if you’re into the RV lifestyle, there’s no reason you can’t go sightseeing and practice social distancing at the same time.
As long as you choose a socially distant place and, of course, follow safety protocols, you can say that RVing is one of the best ways to travel right now.
If you’re thinking of buying an RV, though, you might wonder how much you’ll need to save or if your current budget is enough. Since recreational vehicles can be expensive, the good news is you can finance an RV.
Read on to learn more about RV financing, plus some tips to consider after you’ve decided on the vehicle you want to buy.
How to Finance an RV
Even if you opt for a smaller travel trailer, you’ll still spend a considerable amount of money. There are also other expenses, such as insurance, maintenance, and gas, which you need to consider.
That means if you’re serious about getting an RV, it helps to know more about large purchase financing, which is what RV loans are. There are two RV financing options to choose from: secured and unsecured loans.
Compared to unsecured loans, secured ones have lower interest rates. That’s because lenders can repossess the RVs of borrowers who can’t make monthly payments. In other words, the vehicles act as collateral.
Unsecured loans don’t require collateral, but since it’s riskier for lenders to offer them, you may need to have a higher credit score to get approved for one.
More on RV Financing
For some people, the easiest way to obtain an RV loan is through a dealership. As long as you find their interest rate acceptable, financing an RV this way is a good enough option.
However, you should make sure to choose a reputable dealer like La Mesa RV. You can find out more about them through this site.
Other than dealers, you can also get an RV loan through banks, credit unions, and online lenders. The most important thing is to compare interest rates from multiple lenders and other fees you may need to pay.
Of course, don’t forget to factor in the loan’s length and how much you’ll pay less in interest if you make a larger down payment.
Some Tips on Financing an RV
Whether you go for an unsecured or secured loan, the earlier you check your credit report, the better. You can also start saving up for your down payment to secure the loan you need.
Keep in mind that financial institutions will be looking for a credit score closer to or over 700. They’ll also need to know specifics about the RV you want to buy. That includes mileage, age, value, and so on.
If you’re considering a used RV, that might save you some money. It would be best if you still compared interest rates, though, because you could end up paying more down the line with maintenance costs.
Get the Right RV for Your Travels
The best thing about RVing is knowing you’ve made smart decisions about getting your vehicle.
Now that you know how to finance an RV, don’t hesitate to check out different lenders and compare their rates and fees.
For more financial tips and advice, be sure to check out our other posts.