Financing your next RV can be an easy, straight-forward simple
Recreational vehicle lenders already consider you among the 98.5 percent of RV buyers
that repay their RV loans timely and are willing to offer extended RV loan terms.
Current record-low interest rates allow you to save money, or upgrade your RV purchase,
all while making affordable payments.
It is very common to receive financing terms on
your RV of up to 20 years.
Also, remember that you can write off the interest
on your RV considering it qualifies as a second mortgage.
There are many ways to finance a recreational vehicle. Your loan
for a new or used RV might range anywhere from 8 to 20 years, and have a down-payment
between 10 and 20 percent. With any RV loan, the three keys to keep in mind are:
down payment, interest rate and loan terms.
After you've selected an RV lending source to
finance your recreational vehicle, you'll need to be approved by your lender. The paperwork
required may be called a "loan application," "finance application," or "credit application,"
and provides information the lender uses to approve your loan. Take your time to
accurately complete your application.
You may be concerned that your credit rating is lower than at
the time of your original recreational vehicle purchase, compromising your ability
to refinance. Prepare yourself by obtaining and reviewing a copy of your credit
report before applying to refinance your recreational vehicle loan. This review
allows you to catch and correct any errors, improving your rating as much as possible.
You can obtain a credit report by contacting Equifax at 1-800-685-1111, Experian
at 1-800-520-1221 or Trans-Union at 1-800-916-8800. Remember: Each time you request
a credit report your rating is temporarily lowered, so if you believe your credit
is good simply forgo this step.
you have had credit problems, be prepared to discuss them honestly. RV loan professionals know there can be legitimate reasons
for credit problems, such as unemployment, illness or other financial difficulties.
If you've resolved such problems and your payments have been on time for a year
or more, your credit may be considered satisfactory. If you have bad credit, all
other aspects of your loan need to be in order, including evidence of equity, stability,
income and assets. Late mortgage payments or bankruptcy can do significant damage
to your credit rating.
You may be interested to know that the interest on your recreational
vehicle loan can be deductible as second home mortgage interest. To qualify,
your RV must be used as security for the loan and must have basic sleeping, toilet
and cooking facilities. Virtually all RV types including motor homes, travel trailers,
fifth wheels, truck campers and even some tent trailers are equipped with these
For more information, contact your tax professional or
call the IRS at 1-800-829-3676.
You can refinance
your recreational vehicle online and save both time and money. While conveniently doing business from the comfort of your
home, you may be able to take advantage of lower interest rates and better financing
terms generally offered by online companies. Low RV Financing offers both competitively
low interest rates and friendly financing terms, and specializes in recreational
Beware of quick approvals.
Never fill out an automated “instant approval”, “automated
approvals”, “5 minute approvals”, “30 minute approvals” type of application.
This is usually not reasonable with financing an RV
Don’t just apply blindly without asking the proper questions. You need to ask “how many times will
your company pull my credit score and lower it with each pull?” If you do not ask
this question, in some cases you will find that your credit report may have been
pulled several times.
If you do not specify this concern, your credit can be
pulled more than once.
Without speaking with someone you will never know! Without talking with anyone, how will you know what the
fees are? Find out what their fees are. Make sure there are none that are hidden
under ‘other costs or other fees’. You may be surprised with a bill for an extremely
high loan processing fee a month or more after the loan is finished.
just look at your credit score. Many people
who have great credit scores get turned down because they do not have enough disposable
income to afford a new motor home or other luxury item. Your credit score is not
the total answer, your complete credit profile is. Banks will look at the value
of your trade, how much you currently owe on that trade, your debt to income ratio,
your high credit.
If you are not approved, don’t hesitate to speak to the
bank representative to gain a better understanding of why you were denied and if
anything can be done.
Real RV financing companies are signed
up with many or all of the major banks in the
and many local and regional banks as well. By working
with these major banks they are able to offer you the true service you should expect,
finding the right bank for your financing needs.
In some scenarios, it is possible to be turned down
for credit because of the trade payoff being too high and exceeding the banks loan
advance % guidelines.
However, there are some banks that will make exceptions
to this in the case of the Customer having good credit. In this scenario, the
bank is putting more emphasis on the Customers Credit instead of the loan advance.
sure the finance company you are working with has a good pool of lenders to work with as well.
Beware of Online Surveys.
online surveys are questionable. Be careful and use good judgment when
Some surveys may lead to a bank application that you are
not yet ready for.
You remember this old saying, if it's too good to be true it
When a dealer offers rates that are less than the current Market
Read the fine print and COMPARE PRICES.
You may be getting a lower interest rate, but are you paying more for the vehicle
you are purchasing.
In some cases, more money is charged to the Customer for
the purchase price of the vehicle to buy down the rate from the financing lender.
Don’t over pay for the RV you are buying. When you are ready to trade or sell the
RV, don’t find yourself digging into your savings because you may be “upside down”
in your RV. This is not common.
The only real answer is cash to pay down the balance.
Many people who finance with the dealers and take advantage of very low rates, used
as a come-on method, can end up thousands and thousands of dollars upside down.
0 Down is not always best.
Try hard to put down a minimum of 10% and preferably 20%
when you purchase your RV.
This will better position you when you go back to
the dealer in 3 to 5 years to trade your RV.
With zero down, you are likely to find yourself
Testimonials should be real. Always check for how real they appear
to be. Do they have last names or just a first name? Could you contact one
of the testimonials as a referance?
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