If you want to make an RV purchase, it’s best to get RV financing to help you afford your investment. You can get an RV loan from your dealership, but that’s not the only place to get one. Let’s explore the different places you can acquire RV loans. Then you can determine which place offers the best repayment terms and interest rates for your financial situation.
Which Places Offer RV Loans?
RV dealerships offer loans, but the RV loan rates and terms they provide may not fit everyone’s financial needs. Here are a few other places that offer RV loans:
- Banks: Banks often offer secure RV loans. What are secure RV loans? They are loans that require collateral. RV buyers often use the recreational vehicles they’re purchasing as the loans’ collateral. If you choose a secure loan, you can add a down payment to your collateral to lower your overall loan payment amount.
- Credit Unions: Credit unions also offer secure RV loans, which can allow you to finance your RV with a loan, even if you have bad credit.
- Online Lenders: Online lenders often provide unsecured loans, which allow buyers to pre-qualify for loans with no collateral. However, unsecured loans often have higher payments than secure loans.
These three institutions and organizations are the main places to get an RV loan. It’s best to compare loans from these different lenders to determine which is the best place to get your RV loan.
Choosing Between Secure and Unsecured Loans
How do you choose between secure and unsecured RV loans? Consider the following factors before making your decision:
- Credit Score: Do you have good or bad credit? It’s important to know this because secure loans are often easier to get if you have a bad credit score. Lenders are more likely to approve secure loans for RV buyers with bad credit because secure loans require collateral. The collateral makes the loan less of a risk, even if the RV buyer doesn’t have a great credit history.
- Collateral: If you choose a secure loan, your RV becomes collateral for it. This arrangement means that if you cannot pay the loan’s amount plus interest, you can lose your RV. Since unsecured loans require no collateral, you may not lose your RV if you default on the loan. Can you afford to put your RV up as collateral for your loan? Consider this question before you make any loan-related decisions. Your ability to deal with collateral helps determine the types of loans and lenders you should work with.
- Interest Rates: Unsecured loans may not require collateral, but they often come with higher interest rates and monthly payments than secure loans do. Also, make sure that your loan’s interest rate doesn’t end up costing you more money than the RV is worth. You can use online loan calculators to help you find the right interest rate for your RV financing.
Where Should You Look for an RV Loan First?
You should look for an RV loan in three places, in the following order:
- Your RV Dealership: Your dealership can offer you a loan during the buying process. If they work with a financing and insurance (F&I) outsourcing company like Finance Solution, they can get your loan approved quickly and effectively.
- Finance Solution: If your dealership doesn’t offer a loan that meets your financial needs, reach out to Finance Solution directly. We can help you find the right financing for your situation.
- Online Lenders: If you still can’t find the right loan for your RV, look at online lender’s offerings.
It’s best to go through your dealership to access financing because F&I is built into the RV sales process there. However, Finance Solution is always ready to help you find the loan you need.
How Does Finance Solution Help Buyers and Dealerships Access RV Financing?
Dealerships outsource their F&I services to use. When we take over their F&I services, we use our relationships with lenders to access loans for the dealerships’ customers. We help dealerships find the right F&I solutions for their customers and get them approved quickly. Then their customers can go enjoy their new purchase. If you purchase your RV from a dealership that works with Finance Solution, you know you can find the right financing options and wrap up the purchasing process efficiently.
