2020 is shaping up to be the year of RV travel.
If you’re itching to get out on the road, but don’t yet own an RV, then you may be wondering how to finance your purchase.
Ready to learn more about motorhome financing and how to get it? We’re here to help. Read on as we take a look at how to finance your RV purchase.
Know Your Budget
The most important thing is to figure out how much RV you can afford.
There’s no point taking out a huge loan that ends up crippling you financially. You need to be able to afford the repayments on top of your usual spending—and have money left over to travel!
Once you’ve worked out what your budget is going to be, you know what price of RV you should be looking at.
Save the Down Payment
If you’re taking out financing for your RV purchase, then you’ll almost certainly need to make a down payment.
This will usually be at least 10% of the overall cost of the RV. It could be even higher, depending on the RV financing you find.
You need to be sure that you have enough saved up to cover this down payment or your purchase won’t get off the starting blocks.
Get a Loan
Once you’ve set your budget and pulled your down payment together, you’re ready to look for an RV loan. You have a number of different options for where to find your loan.
If you’re looking for secured loans that require collateral, then banks are a great option. You can borrow up to $100,000 or more and you can usually find some great rates from the big-name banks.
Repayment terms can be up to 20 years but expect to pay at least 10% as a down payment.
Credit unions are another great option if you’re looking for a secured loan.
You can borrow up to around $300,000 to purchase a new or used RV depending on your circumstances. You may be able to find slightly lower rates with a credit union than you can with a bank.
There are plenty of companies online that offer RV loans. You should be able to find unsecured loans at competitive prices if you do your research.
Since these loans are unsecured, there will be more of a focus on your credit rating. A poor rating will affect the cost or even whether you will be able to get a loan.
If your credit rating isn’t great, a secured loan may be a better option. Lenders are more likely to lend to you when they know they will be able to recoup their money.
Are You Looking for Motorhome Financing?
If you’re looking for motorhome financing, we hope this article has been useful in your journey.
Remember to plan ahead, do your research, and give yourself the best chance of getting the finance you need to purchase your RV.
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