RV financing goes hand in hand with purchasing a new or used recreational vehicle. You will definitely need to take a look at your RV financing options prior to purchasing. RV financing can either help or hurt you in your RV purchase by saving you or costing you maybe hundreds of dollars down the road. In general, when looking at different RV financing terms, you will want to find the best monthly payment. This payment should have you paying the least amount of interest over the life of the RV financing loan. You will have the option to self-finance, dealer finance, online RV financing, or through a bank loan.
Types Of Financing
1. Many people first think of a bank or credit union as the best source of RV financing. If you have been working or have a close relationship to such an institution, you may receive a good deal. It is important to note that this type of RV financing institution may not offer you a wide range of flexibility to the terms, and they typically do not have specific financing for RV buyers.
2. Self-financing is another popular RV financing tool for purchasing an RV. You can use cash, CDs, a retirement policy, life insurance policy, or even a home equity line. Beware of capital gains tax, or early withdrawal penalties for money and the funding base you plan on using for your recreational vehicle purchase. You can also consider your new RV as a second home, if it has sleeping, bath, and kitchen areas. Self-financing can be one of the best, most rewarding ways to finance your motor home purchase.
3. You also have the RV financing option to finance through your RV dealer. Dealers will have access to lending companies and/or loan products that regular corner banking services do not have or are able to offer. Dealers have competitive, flexible terms and rates, which may be more beneficial to you. Typical dealer loans will range from 10, 15, or 20 years, depending on the RV itself. Make sure you read between the lines before signing anything, and make sure you understand all of the terms.
4. A recreational vehicle club can also offer your quality financing for your motor home purchase. These RV clubs have financing lenders and companies they work with on a regular basis. You may find these motor home club financing lenders offer low rates and good terms. If you are thinking about buying a specific manufacturer’s make or model of RV, double check to see if the manufacturer offers financing before making your final spending decision.
5. Online options are a great way for you to cost compare different lending options. There are online tools, such as an online RV calculator, which can assist you in figuring out a monthly payment with interest rate, loan amount, and length of term. Loans can also be secured online.
Most importantly, look at the total cost of the loan throughout its life. There are simple interest loans, balloon payments, pre-payment penalties, and more. Do research on your own to ensure you make the wisest, most education decision when financing your recreational vehicle.