Interested in hitting the open road and experiencing the adventures of RV life? That sounds like fun! But first, you probably need to get the financing necessary to make it a reality, right?
Recreational vehicles are a big purchase, and you may have questions you would like answered before committing to the purchase. Here are some frequently asked questions regarding RV financing that you may find helpful.
1. What is RV financing and how does it work?
RV financing is the term used for how you will be paying for the recreational vehicle. Just like getting a car, that may consist of money you have saved for the down payment as well as obtaining a loan to help you pay for the balance.
Start by comparing your income and expenditures to help you figure out your budget, and what you can realistically spend on an RV, right now. Knowing exactly how much you already have, plus how much your loan would be, will help you shop for the RV that fits within your budget.
Use our Financial Calculators to help determine realistic monthly payments towards your new RV.
2. What is an RV Loan?
LMCU offers RV loans made specifically for this type of purchase. It's great for helping finance your outdoor activities. RV loans may be used to finance:
- Travel Trailers
- Toy Hauler
- Personal Watercrafts
An RV loan is designed to help people who specifically want to purchase an RV. Like auto loans, RV loans are a secured loan (with the RV serving as collateral). Keep in mind, if you default on a secured loan, the RV will be repossessed. RV loans differ from car loans in that the interest rates on RV loans are higher and the repayment terms longer, from 10-25 years.
3. How will my credit score affect my chances of getting a loan?
As with other loans, your credit score can affect whether you are approved for a loan, as well as the rate you secure. Even a small difference in interest rates can create a big difference in what you pay over the life of the loan.
The higher your credit score, the lower your interest rate will be on the loan. You can see LMCU’s current interest rates here.
4. What additional costs should I expect as an RV owner?
Consider your destinations and fuel costs, permits to park and camp, insurance, registration, storage during winter, supplies you stock onboard, and of course maintenance.
If you want an RV loan that fits your life and financial goals, you can benefit from just a little research and financial preparation. Whether you’re just starting to think about getting an RV or you’re ready to apply for a loan and bring your RV home as soon as possible, we're ready to help you navigate this journey! Learn more today!
Topics: Wallet Wisdom