Buying a motorhome can be an exciting experience, but don’t forget to check into RV financing before you start shopping around. You can literally save thousands of dollars by just taking the time to do some financial due diligence. Make your RV financing process go as smoothly as possible by learning about a few RV financing mistakes to avoid.
- Not considering how you will handle RV financing BEFORE you start shopping. Do your research on financing arrangements prior to visiting an RV dealer. When you do, the dealer has to be competitive with any interest rates that you’ve been quoted.
- Forgetting to check your credit score. Your credit score will have a direct impact on your loan interest rate. Interest rates will vary between states, but borrowers who don’t have the best credit can expect to get rates of up to 24%, which is significantly higher than the rates offered to those with scores of at least 640.
- Not taking the time to really crunch the numbers. It happens, you can get so excited about finally purchasing an RV that you’re not as careful as you should be when it comes time to crunch numbers. Buyers can end up paying thousands too much in interest if they don’t take the time to thoroughly assess the numbers.
- Not taking the overall cost of RV ownership into consideration when making a purchase. Buyers often forget to consider maintenance fees, gas expenses, RV insurance, and storage fees. It’s a good idea to contact your insurance agent to get an estimate on how much insuring the recreational vehicle will cost.
- Not asking questions about qualifying loan terms and interest rates. Most buyers aren’t aware that, in order to qualify for a refinance, RVs must be 2007 model year or newer. For a purchase, RV must be 2009 model year or newer. The maximum loan term is 20 years for RV 2014 model year or newer on loan amounts of $50,000 or greater. Add 1.00% to above rates for truck campers, folding camping trailers and horse trailers with 50% living quarters (listed in guides).
Now that know about the RV financing mistakes you should avoid, call Easy Escapes RV in Naples, Florida at 239-302-3789. Find out about the current pre-owned Class A RV, Class B RV, fifth wheel and travel trailer models we have that might fit your budget.