| RV loans and financing are the trickiest part of | | | | residences. |
| purchasing an rv, especially if you are buying a used rv. | | | | RV loan application fee - many companies charge to |
| Financing is typically where many dealerships make | | | | find out if they can loan you money. Do not pay it! |
| extra profits at your expense, often through special | | | | INSIST on a free application approval process. If they |
| add-ons, higher rates, or special dealer fees, they pass | | | | are not willing to take this small risk on you then they |
| on to you at inflated costs. Many of the larger RV | | | | are less likely to be perfect to work with. Don't waste |
| dealers offer good rv financing in-house and should at | | | | your time. |
| least be compared and considered. They often have | | | | RV makes that can be financed - Many banks only |
| such a large volume of applications that are specially | | | | want to loan on large, expensive Class A motorhomes |
| targeted to RV's, that they can compete with typical | | | | or buses. If you are buying a class B, class C |
| banks and credit unions. | | | | motorhome, travel trailer, 5th wheel, park model, truck |
| Follow these steps and you will come out ahead. First, | | | | camper or van conversion, ask up front, before you |
| settle on an rv that you want without discussing | | | | get into the lengthy application, if they loan on that kind |
| financing, settle on a price, agree to a trade in value (if | | | | of vehicle. If they just stare at you when you say 5th |
| you have one), then tell the salesman you are willing to | | | | wheel, or if filling out an online application there is not |
| discuss any financing options they have but do NOT | | | | "drop down" box that contains the word "5th wheel" |
| tell them or show them the terms you have already | | | | for vehicle type, then move on. |
| gotten approval for from your bank or other rv loan | | | | Financing older rv's - It can be quite difficult without |
| financing source. Spend a little time now seeing what | | | | perfect credit to finance an older rv. Some companies |
| they offer BEFORE you visit the rv lot and get an rv | | | | will go back 12-15 years on a real solid class A with a |
| loan. | | | | serious legitimate survey or appraisal on it. Other |
| RV loan interest rate - Your interest rate will vary | | | | companies will not touch anything older than 7 years |
| because it depends on many factors, which include | | | | regardless of value or credit score. The point is ask |
| your loan total, expected down payment, credit profile | | | | FIRST if they loan on your year rv so you don't waste |
| and the value of your RV. Most companies will want | | | | time filling out an application for an rv loan that will lead |
| to process your rv loan application BEFORE discussing | | | | nowhere. |
| terms. This is normal and since most companies can | | | | Credit score - the better companies that will finance |
| complete your application in less than an hour, it | | | | you on an rv loan without up front application fees or |
| shouldn't be an issue. | | | | credit check fees, who have good interest rates, and |
| Down payment - Most rv loans require a 20% down | | | | can get it done in an hour or two, will require a credit |
| payment. People with great credit however often | | | | score of 600 - 640 and sometimes higher. If you don't |
| qualify for special programs that have no minimum | | | | have a credit score in that range you will need to be |
| down requirements. Mostly your credit score will | | | | more flexible in your approach and in the interest rates |
| determine this. | | | | you will be willing to accept. |
| Minimum rv loan amount - I rarely see loans processed | | | | Getting an rv loan AFTER you bought the rv - Some |
| in amounts less than $10,000. The value of the rv is | | | | banks have a cash recapture program that allows you |
| just not worth the risk to the bank if they have to | | | | to buy an rv using your cash, like when you stumble on |
| repossess it. It costs the bank the same amount to | | | | a great incredible deal or distress sale and need to by |
| repossess your $9,000 pop-up trailer as it does to | | | | it that day, then they give you the loan later and take |
| repossess a $400,000 class A diesel coach. With the | | | | possession of your title until payoff. This can typically |
| big coach they have something that is easy to sell. | | | | be done up to 4-6 months after the rv purchase. |
| With the pop-up, they do not. | | | | RV Loan calculation - Make sure the loan you get is a |
| Loan term length - most companies will not loan on an | | | | simple interest loan. This way you only pay interest on |
| RV for less than 5 years. Most larger companies will | | | | the principal you owe, and that amount gets reduced |
| loan for as long as 20 years since they see the bigger | | | | every payment you make on the rv loan. |
| coaches as investments and many times as primary | | | | |