A recreational vehicle (RV) can provide a great escape from the monotony of daily life. It is a convenient option for trips or vacations and allows you to save money while enjoying your time outdoors. The decision to purchase an RV is one of the best you’ll ever make in your lifetime. As exciting and adventurous as the venture sounds, if you’re in the market for an RV, you must critically assess your finances. This decision can prove counterproductive if you jump in without making a proper evaluation. Fortunately, a little preparation can go a long way when financing an RV. The tips in this guide will bring you closer to making your desired purchase.
Important things to consider
Factors such as current interest rates and your credit score are some things to consider when planning to finance an RV. Like home loans, RVs’ interest rates are not static and are influenced by market trends. Similarly, your credit score will greatly affect your loan interest rate. Although having a good credit score is important, a low credit score is not much of a deal-breaker. It would help if you searched for a dealer willing to work with your credit rating. Such proactive steps would go a long way in simplifying the entire process.
Useful Tips for Financing an RV
Increase your savings
Unless you plan on paying cash (which isn’t advisable), you intend to finance your RV by getting an RV loan. A good way to reduce your costs in the long run and save some money is to put down a large down payment. To do this, you need to increase the amount of cash you have at hand.
Examine financing options
The bank, online financing, and credit union are among the most common options when getting an RV. It helps to consider the pro and cons of both options before making a final decision. For one, the bank provides direct pricing without the intermediary at dealerships. However, the bank may offer you a single deal, thus eliminating your chance at negotiation – an opportunity you could easily enjoy with a dealership.
Get a low-interest rate.
Whether you opt for a bank or credit union loan, you aim to get a good deal without breaking flat-out. Negotiating a lower interest rate is a sure way to save money on your purchase, especially if you have your eye on a more expensive RV.
Get a shorter loan.
While we’re on the topic of cutting costs, a short loan is always a good option. Irrespective of the interest rate, the total interest paid over ten years would be considerably more than that produced over five years. Essentially, the shorter the loan, the lower the interest payable. Finishing an RV may seem daunting, and your choices will determine how soon you can own your RV. Do your careful research before deciding on a particular financing option; the tips above would go a long way in simplifying the entire process.
