Consider In-House Financing Through Dealerships for Your Next RV or Boat Purchase

Summer is here, bringing warmer weather, road trips, and days on the lake. It’s time to experience the peace only found on open roads and calm seas. However, when shopping for RVs or boats, you’ll quickly realize purchasing your new toy can get expensive. Luckily, financing your purchase helps ease the financial burden. Continue reading to discover:

The benefits of in-house financing with dealerships for RVs
The advantages of in-house financing with dealerships for boats
Tips for financing your next purchase

woman with child looking at the sunset by the rv_

The Benefits of RV In-House Financing

For new motorhome owners, financing directly through their dealership can be an appealing option. The main advantage of in-house financing through RV dealers is the expedited process. You won’t need to navigate through any third parties to arrange RV loans, as your RV dealer can complete the entire process in a matter of minutes through:

Experience
Resources and connections
Established communication loops

In-house financing through dealerships saves a considerable amount of time, as you won’t need to go back and forth between the dealer and a financing institution. Banks often give lower rates to dealers, opposed to individual buyers, making it cheaper to finance your RV through a dealer rather than yourself. Essentially, using in-house financing through dealerships acts as a middleman between you and lending companies.

The Advantages of In-House Boat Dealer Financing

Like motorhome dealers, financing your new vessel through a boat dealership is quicker than working with third parties. In addition to the streamlined process, in-house financing through dealerships has several other benefits.

Factors like how much and how long you can finance a boat relies on the source of your funding. Working directly with your boat dealer gives you more extensive buying power. While banks and lenders limit the amount you’re approved for, dealers are incentivized to sell you their product. This means they’ll offer improved rates and terms with the hope you buy from them, such as:

Specialized financing offers
Low-interest financing
Short-term, no-interest financing
Adjusted payment timelines

If you’ve had trouble getting approval for boating purchases in the past, working with a dealer opens up alternative avenues.

Limited or no credit is one of the main reasons why banks and lenders deny loans. However, financing your purchase through a boat dealership could help you get a head start on building credit. Most boat dealers are happy to work through these hurdles with you, leveraging their financing experience to find rates that fit your economic situation.

5 Financing Tips for Your Next Purchase

In-house financing through dealerships isn’t an end-all-be-all for lending issues. To qualify for the best available rates, you need to be in good financial standing.

Fortunately, you can do a few things to ensure the lending process goes smoothly. Before your next RV or boat purchase, be sure to:

Determine Your Budget

The costs for your new vehicle or vessel can vary, depending on:

The make and model
Age
Size
Add-on features
Previous damages
Existing conditions

Before shopping around for financing options, consider what you want to get out of your purchase, and how you plan to use it. Ask yourself questions like:

How often do you expect to use your purchase?
How do you plan on protecting it from the weather?
Where will you store it during the down months?
Should you buy used or new?

Once you have a picture of your lifestyle in mind, compile a list of must-have and nice-to-have features you want your purchase to include. Research comparable price ranges, then evaluate whether that cost is consistent with your current financial situation.

Check Your Credit Score

While in-house financing through dealerships can increase your loan flexibility, your annual percentage rate (APR) is still based on your credit score.

To qualify for the best financing options, ensure your credit is in the best possible shape. There are plenty of ways to improve your credit score, like:

Paying your bills on time
Paying off outstanding debts
Clearing up any discrepancies or errors
Refrain from using more than 30% of your available credit at once

Be sure to ask your potential dealer about any special promotions they might be running, as lenders offer discounts if you enroll in their auto-pay system.

Searching for ways to improve your credit?

Take a look at some additional tips to help improve your score.

Tips To Improve Your Credit

Save for a Down Payment

Most dealerships require a down payment anywhere from 10–20% of the purchase price—at a minimum. Start saving for a down payment as soon as possible to ensure you’re financially stable to take the leap on your new purchase. The more money you pay upfront, the lower your monthly payments, interest rate, and overall cost will be.

A larger down payment also increases your chances of financing approval, lowering the amount you need to borrow and reducing the lending risk to your dealership.

Negotiate Term Conditions

Before signing the dotted line, make sure you’re getting the best rates available. While in-house financing through dealerships is convenient, this convenience comes with a cost. Some dealerships mark up RV prices as much as 50%—expecting customers to haggle on the price.

Never take the first number offered. Depending on the condition of your purchase, you may be able to reduce 20% to 30% off the sticker price.

Lastly, and most importantly, find a financing provider you can trust. A communicative, attentive lender is key to navigating your loan options quickly and efficiently.

Your Trusted Financing Experts

Finance Solution is Florida’s trusted provider for RV and boat financing. As a locally owned business, our customers are treated like family. We take pride in our ability to take a load off your shoulders, navigating different loan options to find rates that fit within your budget.

Looking to find out how much you could qualify for? You’re in the right spot. Try out our loan-estimate calculator and see how much you could save.