RV FINANCING 101
RV Financing 101
We know that buying an RV can be a complex process. With so many different RV types to choose from, some people feel more comfortable knowing what size of RV loan they qualify for BEFORE they begin RV shopping.
Getting pre-approved for an RV is actually quite simple! It’s a quick & easy way for you to know how much you can borrow, and what down payment you might need.
For purchases with a Beacon credit score of 650 or more, RV loans are quite easy to obtain and are often available through your RV dealer’s RV finance and insurance office.
RV Loans
RV loans are structured similar to mortgages, with a loan term for any type of unit–whether it’s a travel trailer, 5h wheel, toy hauler, camper or motorhome, and can be amortized over a period of 10 to 20 years. With RV loads being stretched out for such long periods of time, it can be very costly if you don’t take advantage of pre-payment options.
Pre-Approval
Getting pre-approved could cut down the hours you spend on RV shopping. If you live far from our location and/or have an idea of the RV or price range you’ll be shopping in, you may want to consider a pre-approval.
Your Credit Score
Getting a loan on an RV requires a Beacon credit score of 650 or higher. If you don’t know what your score is currently, there are websites available to help you acquire it. You may be required to pay a nominal fee for this service.
RV Loans
Pre-Approval
Your Credit Score
RV loans are structured similar to mortgages, with a loan term for any type of unit–whether it’s a travel trailer, 5h wheel, toy hauler, camper or motorhome, and can be amortized over a period of 10 to 20 years. With RV loads being stretched out for such long periods of time, it can be very costly if you don’t take advantage of pre-payment options.
Getting pre-approved could cut down the hours you spend on RV shopping. If you live far from our location and/or have an idea of the RV or price range you’ll be shopping in, you may want to consider a pre-approval.
Getting a loan on an RV requires a Beacon credit score of 650 or higher. If you don’t know what your score is currently, there are websites available to help you acquire it. You may be required to pay a nominal fee for this service.
Used RV Financing
Although the process of financing a used RV is similar to financing a new one, there are a few differences:
Used RV financing usually has a shorter term than new RV financing, which can result in higher monthly payments. However, the overall cost of a used RV is typically lower, usually saving you money in the long run.
Financing rates for used RV sales may be a bit higher due to the smaller amount of money being financed. You often still have the freedom to pre-pay the RV loan or make lump sum extra payments without penalty on the RV loan.
RV Refinancing
Your relationship with your RV loan lender will be separate from the dealership. An RV loans officer’s role is to connect you with a lender who offers the best financing terms and rates for your RV purchase.
Once you sign the RV loan papers, your financial obligation is to the bank that holds your RV loan. Most RV loans are structured with a 5-year term and a 10-20 year amortization. This means that if you don’t completely pay off the RV loan within the initial 5-year term, the lender (bank) will assist you in the refinancing your loan.
You are not obligated (after the initial term) to refinance your RV with the same lender. You are free to shop around for better RV loan rates & RV financing terms from other lenders. Some RV dealers can assist with the process of RV refinance as well.
Financing Rates
RV financing will have you at loan rates from 8.99%, with your exactly rate depending on:
- The purchase price of the RV
- The length of term you choose
- Your individual credit score
Qualified RV loans officers will be able to match you up with favourable RV finance rates from a variety of lenders for your RV loan.
If you choose pre-approval for an RV loan, you are always best to speak with an RV financing specialist over the phone (as apposed to online) simply because they can get specifics from you and your financial commitments prior to submitting your pre-approval for an RV loan.
Used RV Financing
RV Refinancing
Financing Rates
Although the process of financing a used RV is similar to financing a new one, there are a few differences:
Used RV financing usually has a shorter term than new RV financing, which can result in higher monthly payments. However, the overall cost of a used RV is typically lower, usually saving you money in the long run.
Financing rates for used RV sales may be a bit higher due to the smaller amount of money being financed. You often still have the freedom to pre-pay the RV loan or make lump sum extra payments without penalty on the RV loan.
Your relationship with your RV loan lender will be separate from the dealership. An RV loans officer’s role is to connect you with a lender who offers the best financing terms and rates for your RV purchase.
Once you sign the RV loan papers, your financial obligation is to the bank that holds your RV loan. Most RV loans are structured with a 5-year term and a 10-20 year amortization. This means that if you don’t completely pay off the RV loan within the initial 5-year term, the lender (bank) will assist you in the refinancing your loan.
You are not obligated (after the initial term) to refinance your RV with the same lender. You are free to shop around for better RV loan rates & RV financing terms from other lenders. Some RV dealers can assist with the process of RV refinance as well.
RV financing will have you at loan rates from 8.99%, with your exact rate depending on:
- The purchase price of the RV
- The length of term you choose
- Your individual credit score
Qualified RV loans officers will be able to match you up with favourable RV finance rates from a variety of lenders for your RV loan.
If you choose pre-approval for an RV loan, you are always best to speak with an RV financing specialist over the phone (as apposed to online) simply because they can get specifics from you and your financial commitments prior to submitting your pre-approval for an RV loan.