What Else Should You Expect During the Process? Some lenders do finance for full-timers, so shop around for your best option. This is partially due to the fact that you will no longer own a sticks-and-bricks home with a permanent address. But one drawback is that not all lenders are willing to finance RVs for full-time living.

One benefit is that your loan interest may be tax deductible since your RV is considered your primary residence. If you’re planning to live full-time in your RV, there are other considerations to note. Or, if you have good credit, you may qualify for an unsecured loan, which means the age of the rig isn’t a determining factor for approval. If you have 10 to 20 percent to put down, it will help offset expected depreciation and may provide enough security for a lender. If you’re purchasing an older rig, try to gather funds for a down payment. Keep this in mind if you are looking at used RVs. Some lenders, such as Good Sam and many traditional banks, do not offer financing on RVs manufactured more than 10 or 12 years ago. While you can buy a used RV for a cheaper purchase price, you may have more trouble financing a used RV than a new one. You should research your options before negotiating your purchase. Bank loans may be obtained through the dealership or directly from a bank. Like with auto loans, some dealerships offer financing or help you obtain financing from a network of providers. Applying for an unsecured loan is more difficult, but may be necessary if you are buying an older trailer. A secured loan uses the RV as collateral, meaning it can be repossessed if you don’t make proper payments. RV financing is not necessarily harder to get than auto financing, especially if you apply for a secured loan. Your current financial situation will weigh heavily in your financing offers. Photo: Andriy Blokhin / Shutterstock Is RV Financing Hard to Get? Whether or not you are asked to put money down will depend on where you have obtained your financing, your RV’s age and value, and your creditworthiness. This is slightly riskier since the value of your new RV may depreciate after you drive it off the lot. Zero-Down Financing: Similar to auto loans, you can apply for RV loans with no money down. Your interest rate may be based on your location, creditworthiness, RV value, requested term, and other factors. Plus, banks have more restrictive underwriting rules for recreational vehicles. RV manufacturers do not offer similar programs. Automobile manufacturers keep rates low in order to boost sales with better financing terms. For RV financing, you aren’t as likely to find rates this low. Interest Rates: It’s fairly common to come across low interest rate automobile loans, sometimes as low as 3 percent or less. Terms of up to 120 months are fairly typical for purchasing a new travel trailer, while motorhomes and more expensive trailers may even be financed for 240 months. RV loan terms depend on various factors, including the age and value of the RV, and your creditworthiness. Loan Terms: While your typical auto loans offer financing for 12 to 84 months, you may find extended terms for RV financing. How Does Financing Work on an RV?įirst, let’s take a look at how RV financing compares to traditional auto loans. While this step might not be as exciting as other parts of the RV buying process, educating yourself with the right information will give you more confidence in your decision-making. Financing an RV shares some similarities with financing other vehicles, such as cars or trucks however, the process has quite a few differences.

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