Guide to RV Financing

Financing an RV has never been easier, this is partly due to the very low level of defaulted payments that lenders experience. Recent reports have placed this figure at less than 1.6% this means that many lenders are more than happy to lend you money against the cost of the purchase as they are confident of getting their money back. Deposit requirements are also low ranging from 10-20% on new or used vehicles although zero money down deals are also available but at a higher interest rate.

Before purchasing your RV it makes good sense to try to arrange finance yourself, this way you are prepared to make a deal without worrying about the finance. You can then see what the dealer offers and if he comes up with a better deal you can take it or if you can beat his deal use it to negotiate a better deal on the RV. RV’s tend to be kept for a long time so financing can often stretch over 15-20 years. Although this seems a long time you will save several 100 dollars each month by financing over the longest period possible. It is also worth noting that RV’s are classed as second homes so you will get a tax break against the interest payments. To get the tax breaks the RV must be secured against the loan, you must live in it for at least 14 days a year and it have sleeping cooking and toilet facilities. Further details can be got from the tax authorities or your local dealer.

Because an RV can be secured against many loans people with a less than average credit rating can often get RV’s loans although at a slightly higher interest rate. If you are looking for one of these subprime loans check the rate carefully and also check for any early repayment clauses. There are many specialist RV finance companies available that are more than happy to consider any loan application. As we have discussed in this article there are many factors you need to consider, interest rate, down payment, repayment terms and early repayment clauses. Make sure that before financing an RV you check all the possible sources of finance including your bank and local RV dealer as the right deal will save you thousands of dollars over the life of the loan while the wrong deal will cost you a lot of wasted money.