How to Finance Your RV
Over 70% of RV buyers make their purchase using financing—and for good reason! The sticker cost of a camper is high and not many people can pay the full cost upfront. Financing allows you to get the model you want without needing to save up for years and years to pay in full.
If you are considering financing your purchase, check out our below guide. We go through the various steps in the process and provide advice to make the process go smoothly. If you want more information or want to explore RVs for sale, head over to Broadmoor RV. Our dealership is based in the Tri-Cities, Washington. We proudly serve those in Pasco, Kennewick, and Richland, as well as those in Seattle and Spokane, Washington.
1. Build a Budget
Your first step is to determine how much you can invest in your RV. This accomplishes two goals. First, it helps you avoid falling in love with models beyond your price point since you'll eliminate them from your search at the start. Second, it helps you avoid unnecessarily skipping features or models that you can afford. By setting a realistic maximum spending amount, you will be able to get the highest quality RV that you can afford.
As you determine this number, keep a few considerations in mind. First, high quality models can last many years so you'll want to invest accordingly. Second, remember to factor in additional RV costs such as fuel, upgrades, and maintenance fees. Third, loan terms can range from a few years to twenty years, so you'll want to consider how your finances may change over time.
2. Save up for a Down Payment
Most financing options require an upfront down payment of 10% to 20% of the RV's total cost. Start saving up that payment now! Keep in mind that paying more upfront will save you money in the long run due to lower interest rates.
3. Check Your Credit
A big factor in the RV loan process is your credit score. The higher your credit score, the better off you'll be. Focus on building a solid credit score and try to get it above 700.
4. Consider the Types of RV Loans
Think about what type of RV loan you want to pursue. Unsecured RV loans usually have higher rates, but the company cannot repossess your RV if you fail to pay. Secured RV loans use the purchased RV as collateral. Your purchased camper serves as collateral, which means it can be repossessed to make up for a default on the loan. But these RV loans see lower interest rates and usually see higher borrow rates.
5. Consider the RV's Long-Term Value
When you pursue an RV loan, you are going to end up paying interest fees. Be intentional about the RVs you consider so that you don't end up paying way more than the RV is worth. Keep in mind that RVs come with a high depreciation rate during the first few years. If you buy a brand new and expensive model with a very long term loan, you could end up paying a big chunk of change in interest that will be much more than the RV is worth. As you explore RVs on the market, stick with what you can afford in the long-term and make the largest down payment up front that you can.
Ready to explore RVs for sale? Check out the selection at Broadmoor RV. Our expert staff is happy to help you find your perfect camper and help walk you through the financing process, so stop by and visit our dealership today. We proudly serve those in Pasco, Kennewick, Richland, Seattle, and Spokane.