Buying an RV is a lifetime investment for many families. With this in mind, you have to make a worthwhile and informed decision before investing in an on-road camper. The latter allows you and yours to enjoy family vacations, camping trips, and visiting relatives and friends in comfort. As with any RV purchase, taking out a personal loan may be the right way to ensure timely financing. Remember, RV purchases are considered the second most expensive investments after buying homes.
Financing a new RV
There are some things to keep in mind when it comes to financing a new RV. For one, you would want a purchase that goes smoothly and hassle-free. This allows you to make a financially-conscious investment and secure a favorable outcome for all those involved. Here are some crucial tips on buying an RV camper with a personal loan.
Check Personal Loan Rates and Set a Budget
There are several websites that specialize in personal loan rates and services. In fact, these sites feature top-rated lenders with the best interest rates for RV loans. It’s as easy as filling out an online form and answering a few questions to check your eligibility. You may even pre-qualify for loans which makes it easier to expedite the process as a whole. While shopping for an RV, make sure to allocate enough finances to pay back the loan in full. Most lenders offer flexible repayment schedules and low-interest rates to help turn your RV dreams into realities.
You also need to set a budget that is specifically designed towards RV loan payback and return:
• Low-end and/or towable pop-up campers run around $6,000. At the high end, RVs can be as high as $500,000 or more. You need to figure out which type of RV you need then check to see if lenders are willing to lend you the money towards the leasing and/or purchase.
• Make sure your credit scores and/or histories are good. Nearly all lenders check your credit ratings to make sure you are able to pay the personal loan back in full.
• RV loans also range from 10-15 and 10-20 terms. Make sure you are able to afford the monthly payment over the long run.
• Save money for the down payment and consider the costs of gas, maintenance, utility costs (electric, cable, water), storage fees, camping, insurance, and more.
Current Interest Rates
If your credit is excellent, you may qualify for RV financing loans at around 4%. However, if you have poor credit score (below 580), you may still qualify but your rates will be around 24%. For those with weaker credit scores, it may be best to save for a larger down payment. While you will incur greater out-of-pocket costs, this is still the best alternative to being flat out denied for an RV loan. Getting a motor-home or camper can be a tedious experience with financing so you must be patient throughout the entire process.