3 Questions To Ask Before You Finance an RV

As summer begins to wind down and those ideal camping days are beginning to dwindle, it can be difficult to say goodbye to the warmer weather and late nights out adventuring and exploring. However, just because camping season is coming to a close, that doesn’t mean it’s a bad time to shop for a new recreational vehicle (RV). In fact, you may find that this is the perfect time to consider making this exciting purchase!

As with other vehicles, shopping for an RV in the off-season can result in amazing deals that can ultimately save you money. However, when it comes to financing for an RV—including boats, fifth wheels, campers and certain trailers—it’s good to know how much you can afford before heading to the dealership and making this significant purchase. Before jumping into the world of RV loans, ask yourself a handful of questions to make sure you’re ready for this big step. Take a look at our top three questions to ask before you finance an RV.

How is My Credit?

Having a decent credit score always proves to be helpful in situations where payments and financing are involved. When it comes to RV loan rates, financial institutions may be more stringent than they are with auto loans. “RVs tend to depreciate much faster than other vehicles. But, because they can cost just as much or more than a regular vehicle, they’re often financed for longer terms,” says Jade Beckman, vice president of consumer loans at Mountain America Credit Union.

Your credit profile will play a significant role in your interest rate and the total cost of the loan on your RV. Lenders use your credit score, as well as your credit history, to gauge whether or not you qualify for an RV loan. It also will be considered when determining what interest rate you can qualify for on the loan. This is a good place to start when considering your options. If you can access your credit score through your financial institution, it’s much easier to check where you stand and see what the possibilities are for you moving forward.

Where Can I Find Financing?

Banks, credit unions, and independent finance companies all offer financing for RVs. As with autos, preapproved RV financing is important, since it will largely determine which RV you can afford. Beckman suggests using Mountain America’s online RV financing calculator to determine a monthly payment and purchase price that are within your budget.

Already own an RV? Lenders also offer refinancing to reduce your monthly payment. If RV loan rates have dropped, this is the perfect time to consider refinancing and getting that lower interest rate. Give yourself some peace of mind with a lower payment so that you can better enjoy your RV adventures!
 

How Much Should I Plan for in Maintenance Costs?

Do your research on RV insurance, fuel, and maintenance costs to ensure the upkeep fits within your budget. Insurance rates and RV maintenance costs will vary depending on what kind of RV you have, so keep that in mind as you move forward. “An RV needs to be safely stored when not in use. In cold climates, it also needs to be winterized or you will risk major damage to the unit, resulting in large repair bills,” Beckman notes. You might consider looking for a storage unit where you can keep the RV while not in use or, if you’re good with your hands and you have space, you may even consider building a large shed where you can store it on your property.

For consumers wanting to make vacationing more practical and affordable, an RV can be a great solution. This is an investment you can use for years to come and it’s an incredible way to bring people together to make lasting memories. A recent survey by the Recreational Vehicle Industry Association of America indicates that 90% of RV owners take three or more mini-vacations each year, and that travelers can save up to 62% in travel costs with recreational vehicles. Just make sure you’re taking the right steps and the proper precautions as you consider this purchase.