How to Get the Best Deal When Financing an RV (2024)

From the temperate rainforests and snow-capped mountains to sand dunes and beaches, the Pacific Northwest is known for its seemingly endless opportunities for outdoor adventure. And what better way to explore this gorgeous region than from your very own RV?

Whether you’re dreaming of a camper, a trailer, or a different type of recreational vehicle, an RV can bring a lot of excitement and wonder to your life. But, purchasing your first RV may be a bit overwhelming, especially considering how many options you have available. To help you out, People's Community Federal Credit Union has put together what you need to know to get the best deal when financing an RV.

How Are RV Loans Different From Auto Loans?

Though RV and auto loans are very similar, there are a couple of differences that are helpful to know about. First and most obvious is that they’re designed to cover different types of vehicles; auto loans cover traditional vehicles like cars, trucks, and SUVs, while RV loans are tailored for recreational vehicles like motorhomes, campers, and trailers. A few other differences may include:

• Loan Amounts: Due to the typically higher cost of recreational vehicles compared to standard automobiles, RV loans may involve larger loan amounts. This reflects the greater investment required for purchasing an RV and may result in longer loan terms.

• Interest Rates: It’s common for RV loans to carry higher interest rates compared to auto loans. This is partly due to the larger loan amounts involved and the perceived higher risk associated with financing recreational vehicles.

• Borrowing Requirements: Lenders may impose stricter borrowing requirements for RV loans compared to auto loans. This could include higher credit score thresholds, lower debt-to-income ratios, and more extensive documentation to verify income and assets.

How to Buy Your First RV

Buying your first RV is an exciting step toward making your travel dreams a reality. However, it’s important to navigate the process with care to ensure you get the best deal possible. Here’s how to get a camper loan or other RV financing:

Get Pre-Approved

Pre-qualification provides an estimate of how much you may be able to borrow based on basic financial information, while pre-approval involves a more thorough review of your financial situation and credit history. Pre-approval can give you a clearer picture of your borrowing capacity and strengthen your negotiating position when making an offer on an RV.

Research and Compare Possible Lenders

Start by researching and comparing lenders that offer RV financing. Look for lenders specializing in RV loans and compare their interest rates, loan terms, fees, and customer reviews. Narrow down your options to find lenders that best suit your needs and preferences.

It’s also helpful to note that some lenders have additional requirements; for example, the loan may only cover RVs that are 10 years old or newer, or you may need to invest in an inspection prior to purchase. Knowing these requirements will help you prepare for RV shopping.

Gather Helpful Documentation

Prepare the necessary documentation for the loan application process. This may include proof of income, employment verification, bank statements, and information about the RV you intend to purchase. Having these documents ready can streamline the application process and expedite loan approval.

Apply for Financing

Once you’ve chosen a few possible lenders and gathered your documentation, it’s time to apply for financing. Submit your loan application either online or in person, providing accurate information and documentation to support your application. Be prepared to answer any additional questions or provide further documentation as requested by the lender.

Review Loan Offers and Negotiate

After submitting your application, review the loan offers you receive from different lenders. Compare the interest rates, loan terms, down payment requirements, and any other relevant factors to determine the best option for your financial situation and RV needs.

Don’t hesitate to negotiate with the lender to secure more favorable loan terms. This could involve negotiating a lower interest rate, adjusting the loan term, or discussing any fees associated with the loan.

Buy Your RV!

Once you’ve chosen a loan offer and negotiated the terms, finalize the loan by signing the necessary paperwork—then, you’re ready to shop for and purchase your first RV!

What to Look For in an RV Loan

Buying an RV can be a complicated process, but it doesn’t have to be overwhelming. To help you get the best deal possible, it’s essential to consider several key factors when exploring RV loans. Here are some things to keep in mind:

• Interest Rates: Compare interest rates from different lenders to find the most competitive option. Even a slightly lower interest rate can result in significant savings over the life of your loan.

• Loan Terms: Pay attention to the length of the loan term. While longer loan terms may offer lower monthly payments, they can also result in higher overall interest costs. Choose a term that aligns with your budget and financial goals.

• Down Payment Requirements: Determine the down payment amount required by each lender. A larger down payment can help reduce your monthly payments and the total amount of interest paid over time.

• Fees and Charges: In addition to interest rates, consider any fees associated with the loan, such as origination fees, processing fees, or prepayment penalties. These fees can add to the overall cost of borrowing and should be factored into your decision.

• Repayment Flexibility: Look for lenders that offer flexible repayment options, such as the ability to make extra payments or adjust your payment schedule without penalties. This can provide greater financial flexibility and help you pay off your loan more quickly.

• Credit Requirements: Understand the credit score and credit history requirements for each lender. While some lenders may be more lenient, others may require a higher credit score for approval. Knowing where you stand can help you target lenders that are more likely to approve your application.

• Customer Service: Consider the level of customer service provided by each lender. A responsive and supportive lender can make the loan process smoother and provide valuable assistance throughout the life of your loan.

Buy an RV With People's Community Federal Credit Union

Ready to hit the road in your dream RV? At People's Community Federal Credit Union, we offer competitive RV loans with the same great rates for all our members. Whether you’re a seasoned traveler or embarking on your first RV adventure, our flexible financing options make owning an RV more accessible than ever. Apply for your RV loan today and start exploring the great outdoors with confidence.

Join People's Community Federal Credit Union and experience the freedom of RV ownership with rates that work for you!

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