RV loans and financing are the trickiest part of purchasing an rv, especially if you are buying 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.

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 motorhomes, class C motorhomes, travel trailer, 5th wheel, park model, truck camper or van conversion, ask up front, before you get into the lengthy application, if they loan on that kind of vehicle.

Credit score – the better companies that will finance you on an rv loan without up front application fees or credit check fees, who have good interest rates, and can get it done in an hour or two, will require a credit score of 600 – 640 and sometimes higher. If you don’t have a credit score in that range you will need to be more flexible in your approach and in the interest rates you will be willing to accept.

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.