Getting the Best RV Loans

With the current economic conditions getting RV loans today can be challenging.

Here are some additional things to consider before taking out that loan. In addition to the cost of your new RV you will need RV insurance, possibly roadside assistance coverage or emergency coverage, license and registration (which varies widely between states), RV maintenance fees (this will vary depending on if you are buying new or used), RV storage if you don't plan to live in your RV fulltime.

Then there will be expenses for fuel, propane and RV park fees. This sounds expensive, but it's not as bad as it initially sounds. You do want to be aware of what these things will cost you before making a purchase. We have found fulltime Rving to be really economical as compared to our traditional house.

RV loansOkay you still want an RV and the best RV loan you can find. If you are buying a new RV financing is generally offered at the dealership. Be aware that dealers can profit off financing because their RV loan rates are generally higher and they tend to tack on dealer fees adding to the overall cost of your purchase. Larger dealerships can sometimes offer better financing options. In our experience the dealer offers financing through a bank that typically has a high interest rate. The dealership will most likely not care if your loan has good terms; they just want to sell you an RV. We have had loans with traditional banks at a decent rate, but our best rate we got through a credit union loan secured before our purchase. There are a lot of websites offering online applications for RV financing as well.

We recommend you get your financing before signing any purchase agreement. You need to know what it is going to cost you and what you can afford before you agree to buy. Using RV loan calculators can help you get an idea how much RV you can afford before you start looking. You don't want to fall in love with one you can't afford.

There are loans out there for every situation including a bad credit RV loan. You will be better positioned to negotiate price if you have a loan secured in advance of your purchase. Many companies will not make loans on inexpensive RVs because their costs can't be justified in the event the loan isn't paid. Others will not lend on RVs over 7 years old because of depreciation. Don't let these facts convince you to buy a higher priced RV or a newer one than you can actually afford. It's best to tell the loan officer what kind of an RV you're considering before bothering to fill out the application. That way you won't waste time on those that do not loan on your chosen RV.

Before discussing financing with a dealer you needs to agree on a price for the RV you'd like to purchase and a value for your trade in if you have one. Again, ask the dealer for their loan options only after you have reached an agreed upon price and any trade in value.

You can get quotes from several before deciding on the best terms for your situation. You will have to complete a few RV loan applications, but be sure not to pay any fee to apply. If they want you to pay to apply pass on their offer! Most companies can process your application in an hour and will want to work out the terms later. Don't sign any agreement until you know the terms of the contract. Compare dealer financing to other sources. Dealer financing may actually cost more because some dealers receive a percentage of your loan as a commission or rebate from the lender. If the dealer is more concerned about getting your financing approved than finding a suitable RV they will most likely profit off the financing. DonÂ’t be pressured by the financing department into purchasing add-on offers like extended warranties or special insurance. They will make commissions off these and you can buy these warranties much cheaper elsewhere. Just say NO to the add-ons no matter how much they try to coerce you into them.

RV loans Things you will want to consider are the down payment required, the length of the term, and the interest rate. Look for a competitive rate, flexible terms, with a fixed-rate and no prepayment penalty. Look for a simple interest loan and you will pay interest only on the principal which is reduced every time you make a payment. Look for any clause that will restrict the RV from moving around. Some contracts will actually state that the RV must stay within a certain radius. YouÂ’re buying it to travel in arenÂ’t you? You should avoid those pay-for-life loans that are 10-15 and even 20 years long. Interest charges over the life of the loan will far exceed the value of your RV and you will be upside down and never able to sell it should you decide to. Consider a less expensive RV instead. Look for a lender with dedicated customer service so you can get your questions answered.

Don't miss out on discount loans available through AARP if you are over 50, or loans from RV discount clubs like the Good Sam Club with lower interest rates. If you're currently stuck in a bad RV loan you should shop around for a refinance RV loan.

If you are buying a used RV check the NADA Guide for estimated values before making an offer. We paid WAY too much for our first motor home and we're still whining about it today! Check before you buy so you won't have buyer remorse!

When you've done your homework you can shop with confidence and look forward to enjoying your new RV.

RV Loans Calculator