Do you want to travel the world on a budget? With a customizable RV financing plan and solid loan provider, you’ll reach your destination in no time.
Financing Your RV, Explained
Recreational vehicles, or RVs, are a combination of a home and a vehicle. Many people buy RVs because it’s much cheaper for travel than flying, and you have easy access to all accommodations you need, like sleeping spaces.
Because RVs are much larger than most motor vehicles, they’re typically expensive—but you shouldn’t let the price keep you from the RV of your dreams.
There are financing options available to you so you don’t have to break the bank purchasing your RV. Many RV lovers finance their RV using an outsourced financing provider that helps customers get approved for RV loans.
Understanding the framework of RV loans is a great place to learn how to finance an RV.
How Old of an RV Can You Finance?
Most financing providers won’t finance RVs older than 10 to 15 years old—but some do have financing plans for purchasing an older RV. It depends on the lender you work with.
How Do RV Loans Work?
If you want to finance an RV, you need a loan. RV loans work like most other loans—you must get approved for the loan using certain criteria and pay it back over time. The first step to applying for an RV loan is determining your budget and the kind of RV you want.
If you plan on using your RV specifically for camping, you might want a truck or pop up camper. If you want to live in your RV for months at a time to travel, consider getting a class B motorhome. When you know your budget from the get go, you’ll know exactly what kind of RV you’re looking for.
After you determine your budget and your RV of choice, check your credit score to see how likely you are to get approved for an RV loan. Of course having a solid credit score in the 661 to 850 range increases your chances of getting approved, but financing providers look at other factors, too, like how quickly you’ve paid off other loans and your debt-to-income ratio. Your credit score isn’t the only deciding factor, so don’t feel discouraged if it’s low.
Once you look up your credit score, you should start saving for a down payment on your loan and finding a financial loan provider to help you with your RV journey.
Typical RV Loan Terms
Typically, RV loan providers ask you to pay your loan back in 10 to 15 years, but this time could be extended depending on how much your RV was. Some companies extend your time to 20 years if your loan was over $50,000.
Depending on how long your RV loans are and your credit score, your interest rate may vary, but the average rate on RV loans is around 5.4%.
You also need RV insurance before attempting to get an RV financing loan.
The Different Types of RVs
Here are the different types of RVs available to you:
Travel Trailer
Travel trailers are compact homes attached to your car. They range from 12 to 35 feet long and can comfortably fit two to ten people depending on the size.
Truck Camper
Truck campers sit in the bed of a pickup truck and can act as a little home on wheels. These campers are the smallest RVs on the market, but they can still fit a bathroom, kitchen, and bed.
Pop-Up Camper
Pop-up campers are collapsible RVs that you tow with your car. They’re a great alternative for heavier RVs because you can fold them up into a smaller vehicle that’s easier to transport.
Class A Motorhome
Class A motorhomes have strong, resilient frames. These motorhomes are defined by their spacious interior and storage space, and they’re very luxurious and high quality. While these vehicles are nice, they have terrible fuel economy, averaging eight to ten MPG.
Class B Motorhome
Class B motorhomes are the smallest of the three classes and the easiest to drive—and they have great fuel economy. The interior is much smaller than a class A motorhome, but there’s still enough space for a toilet, shower, kitchen, and living space.
Class C Motorhome
Class C motorhomes are a combination of class A and B. These RVs have over-cab sleeping areas, allowing for more space in the living area, and are able to tow a car separately, making traveling and exploring much easier. The gas mileage is in between the mileage of class A and B.
Where Can I Get Started?
Finance Solution provides RV loans for all types of RVs. We promise low down payments, longer finance terms, and cost effectiveness. We want to get you the RV you deserve without going over your budget.
Learn more about our RV loans to finance your RV today!
