When you have that perfect RV in mind, the initial sticker shock can be a bit much. After all, you are buying something that doesn’t provide shelter (unless you plan to live in it), does not provide additional income (unless you plan to rent it when you aren’t using it), and won’t give you any sustenance.
An RV is a great investment for you, for your family, and to help you get out and have an adventure. In order to make this affordable, there are long-term financing options out there that will allow you to drive the RV of your dreams off the lot and satisfy that wanderlust. Financing is a great option when you want that perfect RV and can handle a monthly payment. Here is how a bank will determine the length of your RV loan:
Loan amount – The first thing they will look at is the total amount and the more you need, the more time you will get to pay it off.
The type of unit you plan to buy – Are you buying new or used? Most financiers will offer a longer term for new vehicles.
Your credit score – The better credit you have, the less of a credit risk you are which means lenders are more likely to offer you longer terms for your loan. If your credit is borderline or if you have a higher debt to equity ratio, you may be looking at a shorter term loan.
As you can see, your credit and your ambitions will determine the maximum length of loan you can get. Some lenders will allow you to choose the length of time you need based on the above factors. Now you will need to ask yourself a few questions before you begin to find a loan for your RV:
How long can you take to pay off your long-term RV loan?
The maximum length of a loan you can get is 20 years, but these are very rare and only offered by certain banks and require a minimum financed amount to qualify. The typical loan for an RV is 10 to 15 years which is still an extraordinary amount of time to pay off a large purchase like an RV.
Do you want a short term or long term loan?
The main factor here is interest and how much you are willing to pay. Short-term loans are less costly because you pay less interest over time. Also, there is the question of time. As a borrower, you may not want that kind of payment hanging over your head for a decade, or more. This is especially true if you have other financial obligations that may impair your ability to pay your RV loan.
How to find the perfect RV loan
The experts at Finance Solution have been securing loans for borrowers like you for a very long time and we are confident that we can find the financing that will fit your lifestyle and your budget. The RV of your dreams is out there and adventures are just waiting to be discovered.