The information on this site does not modify any insurance policy terms in any way. Many types of recreational vehicles, also known as RVs or campers, can serve as a combination between a home and a vehicle. RV loans are available through online lenders, banks, credit unions and RV dealerships. While the process of getting an RV loan is similar to that of getting an auto loan , lenders offer longer loan terms. Loan qualification might also be more complex, like getting a mortgage.
Once you secure financing for your RV purchase, you could be on your way to seeing the country, vacationing comfortably, visiting relatives or even establishing a permanent residence.
An RV loan is a type of long-term financing used to purchase a motorhome, travel trailer or camper. Many lenders offer RV loans for both new and used recreational vehicles. You may be able to find RV financing through an online lender, a bank, a credit union or the RV dealership where you purchase the vehicle. While an RV loan is similar to an auto loan, loan terms are generally longer and the transaction is oftentimes more complicated, like a mortgage.
Most RV loans feature repayment terms that range between one and 15 years. However, some lenders and financial institutions may offer RV loans that stretch as long as 20 years.
Depending on the amount you need to borrow, your lender may be more stringent. Similar to a home loan, your lender may want to see other documentation, such as tax returns, financial statements and detailed credit history.
A good credit score for a car loan is around or higher, but for an RV loan, you might want to aim for at least While an RV loan is typically specific to the purchase or refinance of a recreational vehicle, it works like any other consumer loan.
A financial institution or lender provides the funds for the purchase, and you pay back the money with interest over a specified time frame. Brian Sharapata, senior manager of credit product strategy for Alliant Credit Union, points out that the type of RV and trailer style can determine which lender is best for you.
Not all lenders will finance every type of RV. Because RVs are more expensive than regular cars and trucks, lenders typically offer longer terms for RV loans than auto loans. Some lenders offer terms as long as months, or 20 years.
However, borrowers who can afford higher monthly payments can find shorter terms. Current RV loan rates start around 4. If you have poor credit, which means having a FICO score below , your interest rate will likely be much higher. In this case, consider saving for a larger down payment and working to improve your credit in the meantime. Before you start shopping, figure out what you want in an RV and what you can reasonably afford.
First, consider how large you need the RV to be — a small camper is less expensive and easier to park, but it may not be the right choice if you have a large family.
Repayment terms are also important when developing your budget. On average, RV loan terms range from one to 20 years. A year loan is more affordable on a month-to-month basis but will ultimately cost more in interest. Most RV companies require a down payment of at least 10 percent of the purchase price, and many prefer 20 percent down.
A larger down payment will help lower your monthly payments, and you may even qualify for a lower interest rate. Think of class C vehicles as less of a house on wheels and more of a highly comfortable traveling apartment.
Class C motorhomes can vary in length from 20ft to 40ft, making it easy to find a model that will match your traveling plans. Larger models in this class often include slideouts to provide extra room for passengers when the vehicle is parked, and can be outfitted with the latest in appliances and entertainment features to provide a comfortable home away from home.
Fifth-Wheel travel trailers offer more square footage than any other RV, making them a good choice for larger groups or travelers or for those adventurers who plan to live in them full-time.
Fifth-Wheel trailers typically feature split-level floor plans providing ample living space for occupants. Sizes vary from a modest 25ft to an impressive 45ft making it easy to find a model that suits both your budget and your lifestyle. Fifth-Wheel trailers are not self contained RVs, so depending on the model you would need a pickup or flatbed truck with the necessary towing capacity to haul your home on wheels.
They are also cheaper to maintain than Class A or Class C motorhomes. Travel trailers are often the most popular option for those looking for an inexpensive and versatile towable RV. Most models are compact and lightweight, so they can be successfully towed by a pickup truck or SUV. Despite their compact size, however, travel trailers can offer similar features to class A and class C motorhomes at a fraction of the cost. If there is a downside to the standard travel trailer it is that passengers can not ride in the trailer during transit, so larger groups of travelers may find it inconvenient while they are on the move.
Pop-up campers are the most compact and affordable towable trailer options on the market. They are easy to tow and park, and once at your destination they quickly transform into a rigid tent-like structure with ample room for 4 or more occupants. It must be said, however, that most pop-up campers are fairly sparse when it comes to amenities, and depending on the model you may have to opt for custom add-ons shower, toilet, mini-kitchen in order to get the most out of the purchase.
Truck campers are small RV units that are designed to fit into most standard truck beds. They are ideally suited to one or two travelers, and typically offer basic amenities like a toilet, shower, and cooking area.
Truck campers are, by their very nature, highly compact, offering little in the way of living space. This makes them ideal for short trips and overnight camping or fishing jaunts, but poorly suited to long-haul traveling.
Popular truck camper brands: Palomino , Northwood, and Travel Lite. Sport Utility Trailers, sometimes called Toy Haulers, are towable units that offer garage like storage for motorbikes and personal water craft.
In a pinch the storage area can be converted into a bedroom or living space, though the amenities will be slim to none. Toy haulers should be seen more as useful accessories than potential living areas. Setting aside cost for a moment, and whether or not you will be purchasing a new or used model, you need to take a moment to think about the type of experience you are aiming for.
Some buyers are looking for something that will provide comfortable long term housing while they travel the country, while others are looking for a trailer or motorhome that will act as a temporary home while they are on holiday.
How you intend to use it will play a large part in determining the type of vehicle you need. Using your ultimate travel and living plans as a guide, consider the following points to help you narrow down your choices:. With these key factors in mind, you will want to take your time researching the various makes and models that fit your lifestyle, budget, and travel plans.
At this point in your journey the internet can be a very real asset. Leading brands like Airstream, Coachman , Entegra and Forest River RV maintain extensive websites featuring all the specs on their latest models.
You can compare and contrast floor plans, stock and custom features, and specific price points. Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback!
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A personal loan or credit union can help you get financing for older rigs. Additionally, personal loans will often need to be secured, meaning they will use your RV as collateral and can take it from you if you don't make your payments on time. If you would prefer a rough estimate for your RV loan, an RV loan calculator can help calculate RV loan payments and overall costs.
To use one, you need to know your loan term, annual percentage interest rate API , and loan amount. Keep reading for lending options and answers to common RV financing questions. There are several lenders that offer financing options.
Whether you're looking for someone with low interest rates, low monthly payments, or variable loan amounts, we've compiled a few that may work for you below. Lightstream , a division of Suntrust Bank , shows their rates right off the bat when you look at their site. Unfortunately, Essex Credit only finances RVs from or newer. This gives you plenty of wiggle room to choose the perfect RV. General RV Center offers financing through several banks and credit unions, meaning plenty of choices to find the best loan services.
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