RV loans and financing are the trickiest part of purchasing an rv, especially if you are buying a used rv. Financing is typically where many dealerships make extra profits at your expense, often through special add-ons, higher rates, or special dealer fees, they pass on to you at inflated costs. Many of the larger RV dealers offer good rv financing in-house and should at least be compared and considered. They often have such a large volume of applications that are specially targeted to RV’s, that they can compete with typical banks and credit unions.

Follow these steps and you will come out ahead. First, settle on an rv that you want without discussing financing, settle on a price, agree to a trade in value (if you have one), then tell the salesman you are willing to discuss any financing options they have but do NOT tell them or show them the terms you have already gotten approval for from your bank or other rv loan financing source. Spend a little time now seeing what they offer BEFORE you visit the rv lot and get an rv loan.

RV loan interest rate – Your interest rate will vary because it depends on many factors, which include your loan total, expected down payment, credit profile and the value of your RV.

Down payment – Most rv loans require a 20% down payment. People with great credit however often qualify for special programs that have no minimum down requirements. Mostly your credit score will determine this.

Loan term length – most companies will not loan on an RV for less than 5 years. Most larger companies will loan for as long as 20 years since they see the bigger coaches as investments and many times as primary residences.

RV makes that can be financed – Many banks only want to loan on large, expensive Class A motorhomes or buses. If you are buying a class B, class C motorhome, travel trailer, fifth wheel, park model, truck camper or van conversion, ask up front, before you get into t mhe lengthy application, if they loan on that kind of vehicle. If they just stare at you when you say 5th wheel, or if filling out an online application there is not “drop down” box that contains the word “5th wheel” for vehicle type, then move on.

Financing older rv’s – It can be quite difficult without perfect credit to finance an older rv. Some companies will go back 12-15 years on a real solid class A with a serious legitimate survey or appraisal on it. Other companies will not touch anything older than 7 years regardless of value or credit score. The point is ask FIRST if they loan on your year rv so you don’t waste time filling out an application for an rv loan that will lead nowhere.

RV Loan calculation – Make sure the loan you get is a simple interest loan. This way you only pay interest on the principal you owe, and that amount gets reduced every payment you make on the rv loan.