The cost of an RV can be as low as $10,000 for a used RV with few features. It can be as high as $300,000 for a Class A motorhome with all of the bells and whistles.
No matter what you choose to be your next RV, you’re going to need to find a way to pay for it. Not many people have that kind of cash available, so they have to look at RV financing.
What does it take to finance an RV? Read on to discover how you can get into a new RV.
1. Choose an RV You Can Afford
Go into the RV purchase with a budget in mind. That helps you narrow down your options. You can then research the different classes of RVs and find ones that fit your needs and budget.
Don’t overlook luxury RVs, either. You’d be surprised to learn that you can find a luxury RV that’s affordable.
2. Check Your Credit Score
Your credit score determines your ability to get RV financing and the interest rate. A high credit score improves your chances of getting a great deal on your RV loan.
What kind of credit score for RV financing is required? You should have at least a 700 credit score. If you have a lower score, you still have options. You’ll need to find a lender willing to work with people with fair credit.
3. Search for Lenders
There are lenders that offer RV financing or large purchase financing. These are usually personal loans that get paid back in monthly installments.
Check with your bank to see if they offer these types of loans. You can also check with dealers for financing options. There are online lenders that you can use as well.
4. Compare the Terms of the Loan Offers
The terms of the loan include the interest rate, how much you pay each month, and how long the RV financing is for.
You don’t want to look only at the monthly payment. You could have a low monthly payment, but the loan is for so many years. You could end up with the loan after the RV is out of your hands.
5. Get Preapproved
Did you settle on a lender? You’ll want to go through the application process and get preapproved for a loan. This gives you an advantage when you walk into RV dealerships.
That’s because a preapproval letter says that you can get a loan for a certain amount of money. You’ll be able to negotiate with dealers to get into an RV.
How to Finance an RV
Did this article take the mystery out of financing an RV? Figuring out how to finance an RV isn’t that difficult. You do need to make sure you have good credit and a budget in mind.
That helps you get the right RV at a price you can afford. Be sure to head over to the Lifestyle section of this site for more great tips.