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 or RV consignment 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. Rates and terms can vary wildly and your monthly payment needs to be manageable.
- 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. Financing options are available, however, if these conditions are met.
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% annual percentage rate to above rates for truck campers, folding camping trailers and horse trailers with 50% living quarters (listed in guides).
In conclusion, avoid being unprepared before you start your search; not knowing your credit score, not taking the time to work out a realistic budget and including peripheral costs, and finally make sure to ask very specific interest rate questions. Bring all this pertinent information with you while shopping in case the RV of your dreams is suddenly parked before you on the dealer’s lot. You’ll be able to begin the application process immediately.
Now that you know which RV financing mistakes you should avoid searching for your 5th wheel RVs, camper vans or other used RV, call Easy Escapes RV in Naples, Florida at 863-450-4915. 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.