Financing a Recreational Vehicle in Today’s Marketplace
Every day, somewhere in the United States, prospective recreational vehicle owners confront a dilemma: how can a buyer obtain RV financing? Recreational vehicles cover a broad spectrum. They range from brand new luxury motorhomes commanding hundreds of thousands of dollars, to previously owned RVs and camper trailers available at significant discounts. How are RVs financed?
Most experts agree, obtaining financing for an RV usually proves more difficult than financing an auto. Loan applicants benefit by taking two important actions. First, provide a down payment of at least 10% or more. Second, negotiate with the seller to obtain the best possible purchase price.
Why do these steps matter? Lenders hesitate to make loans using RVs as collateral. These vehicles depreciate in value rapidly. Consequently, purchasers who obtain financing assume a higher degree of financial risk.
Popular RV Financing Methods
Fortunately, more lenders now advertise their interest in financing recreational vehicles online. An Internet search will probably help you locate several potential loan sources. Consider these ways to finance your purchase:
- A Conventional Bank Loan: Some lenders do accept non-residential RVs as collateral. Other banks make realty home equity lines of credit available for any purpose.
- Installment Loans: A few lenders extend installment loans available for RV purchases. They supply a lump sum repaid in regularly scheduled installments.
- Credit Cards: Credit cards offer another, potentially expensive, financing option.
RVs enhance vacation freedom. Possessing excellent credit assists prospective purchasers seeking financing.