Tips For Securing The Best RV Loan


It may be said that there is no greater mystery when buying from a dealership than RV
financing. Some of the most important questions you should be asking as you prepare to
finance an RV are:

  • How much can I borrow?
  • How long should my term be?
  • Am I getting the best interest rate?
  • Should I get pre-approved before I visit an RV dealer?
A couple signing paperwork secureing RV financing. Photo: Shutterstock.

As a general rule, you should be able to secure RV financing up to 80%–90% of the purchase price (including any extras that you are adding at the time of purchase). When it comes to terms, most RV loans over $100,000 can be financed for as long as 20 years. RV loans between $25,000–$99,999 typically have a maximum term of 15 years. The general opinion is that a shorter term has the best advantages. A shorter-term RV loan will allow you to build up equity in your RV more quickly which will translate into more money into your pocket when it’s time to sell. However, individual issues such as the amount of down payment and ability to make monthly payments should be considered. Part of the confusion that, no doubt, comes into play when securing RV financing is the lending rate.

RV financing rates

The rate that you obtain for an RV loan is based on a number of factors: the term of your RV loan, your credit quality, credit score, credit history, repayment history, down payment and loan-to-value. The basic rule is: The higher the risk, the higher the rate; the lower the risk, the lower the rate. The best way to improve your rate is with a larger down payment, shorter terms and a strong credit history. Whether you intend to buy a new or used RV, having your financing pre-approved first gives you a number of advantages:

  • If you are purchasing a new RV, a pre-approval will give you flexibility akin to
    shopping with cash. It will also allow you to compare dealer financing and even
    negotiate a better deal than your local bank is offering you. For example, let’s say
    your local bank is charging you 7% interest. A dealer may offer you 6.5% to get your
    business.
  • You have the ability to negotiate and get the best price at any dealership because of
    your pre-approval status. When a dealer knows you are qualified they will work
    harder to earn your business.
  • If you are purchasing a used RV, whether from a dealer or a private individual, pre-
    approval gives you a negotiating advantage. It lets the seller know that you are a
    serious buyer because your financing is already in place. This way your offer can be
    made without any concern that financing may fall through so you have the ability to
    close quickly. Pre-approval also helps you determine your credit and loan limits, allows you to
    address and resolve any credit issues before they become an issue, and helps
    eliminate any financing anxiety that might arise once you have entered into a
    purchase.

Spend some time researching your loan options and get all the facts on the table before you
start talking with RV dealers or a private party. This one step will save you hundreds, if not thousands, of dollars because you understand your options and will not be taken advantage of.

Get RV safe directions

Once that loan is secured and the RV is in your driveway, it’s time to follow the road to adventure! For all of your camping and trip planning needs, look no further than RV LIFE Campgrounds and RV LIFE Trip Wizard. Campground Reviews is a trusted source of campground and RV park reviews offered by camping and RV enthusiasts just like you. With its accompanying RV LIFE app, RV Trip Wizard gets you to your camping destinations utilizing RV-friendly routes specific to your RV and travel preferences.