Buying an RV is a major life decision, which is why finding the right financing is a big first step. Unlike a regular vehicle you might use every day, RVs are financed through personal loans. Here are a few things to consider when looking for RV financing.
Check your credit. Just like any other loan you might get, you need to make sure your credit is in a good place before you start applying for loans. If you find any problems, get those resolved. In addition, try to pay down some of your existing debt before you take on any more. Keep in mind that although you may still be able to get a loan with poor credit, your interest rate will likely be higher.
Consider all the costs. Just because you can afford the monthly payment on your RV loan, it doesn’t necessarily mean you can afford an RV. There are a lot of additional costs, including fuel, insurance, maintenance, storage, and more.
Compare rates. It is okay to shop around for the best rate and overall terms for a loan. RV loans can be big and last a lot longer than a traditional vehicle loan. An interest rate 0.25% lower can mean big savings over the complete term of the loan.
Make a big down payment. To avoid being upside down on your loan (owing more on the loan than the RV is worth), make as big of a down payment as you can. Experts recommend at least 10% of the total purchase price. Just like cars, new RVs depreciate as soon as you drive away with them.
How to Get an RV Loan Even if you have Bad Credit
Just because you have bed credit does not mean you have to give up on your dream of seeing the country in an RV. Here are six tips on how to get an RV loan even if you have bad credit.
Work on your credit. Take a look at your credit report (you can get a free one every year) to see where your problems are. Perhaps you have some overdue payments or high balances? Try to pay some of these off and correct any credit errors you find. This will show the lender that you are taking good steps.
Make more money. If you have struggled in the past due to low earnings, a big boost in your pay could help show lenders you have the means to pay for an RV loan.
Pay off some loans. Perhaps you have some loans that are close to being paid off. Once those are finished, this money can be put toward paying off an RV loan.
Save for a down payment. The bigger your down payment, the less money you will need to borrow. By saving up 20% or more of an RV’s total cost, you will be in better standing with lenders.
Do your research. Make sure you are getting the most value for your money by knowing how much the RV is worth. A lender will not loan out money if they do not think the collateral (the RV) is worth what they are backing.
Work with the dealer. Many RV dealers, like Hanner RV Supercenter, have financing partnerships that may be able to find a better rate for you than just looking on your own.
If you want to make your adventuring dreams come true, come visit us at Hanner RV Supercenter. We will work with you and our lenders to get you in the RV of your dreams.