4 Tips For Financing An RV

Budget Tips

4 Tips For Financing An RV

Much like buying a car, most people who buy an RV must first obtain financing. Many RVs are a major life purchase, and financing makes RVing affordable, similar to how a person affords a home by getting a mortgage.

With that being said, you do want to be smart with how you handle your finances. Unlike houses, RVs depreciate the moment you drive them off the lot. By being careful when financing your RV, you are more likely to be happy with your purchase, plus you’ll be able to save the most money.

Here are my tips for financing an RV:


Improve your credit score.

Before you set out to buy an RV with a loan, you should make sure your credit score is as high as you can get it.

Your credit score has a big impact on what kind of loan you will receive. It can impact your interest rate, the amount of the loan you may qualify for, the term length, and whether or not you can qualify for a loan.

I recommend having a credit score of at least 750, if you want to qualify for the best RV loan and interest rate.


Save for a down payment.

Even though you may be financing your recreation vehicle, you will most likely still need to save for a large down payment.

Down payments on RVs are usually at least around 10% of the purchase price. Putting more towards your RV purchase will drop your monthly payment and make it more affordable. Plus, you may qualify for a better interest rate if you are able to put down a large down payment.


Set an RV budget before you start shopping.

Before you start shopping for an RV, you should set a budget for how much you can afford. This will help you to stay within a price range that is within your means, so that you are realistic when you are at the dealership.

Also, don’t just think about the monthly payment, think about the whole cost when buying an RV. The monthly payment may seem affordable to you, but keep in mind that some RV loans are for a 10 to 20 year period. This can make it seem like it will fit into your monthly budget, but it is best to think about the whole picture.

By purchasing an RV that is in your budget, you are sure to get much more enjoyment out of the vehicle. You will worry less about whether you can make the monthly payment each month, which means you can have more money to save or spend on other things in your life.


Shop around for the best interest rate.

RVs are a large purchase, which means your RV loan will most likely be large as well. By shopping around for the best interest rate on your RV loan, you may be able to save hundreds or thousands of dollars each year.

I recommend shopping for the best rate at various credit unions, banks, RV financing companies, as well as at the RV dealership. The RV dealership can be very competitive with their rate as they usually serve as a broker for many different lenders, so keep that in mind as well.

Do you have any tips for how you financed your RV? Let me know in the comments!

picture of a couple with a dog

Making Cents of Sense

Michelle Schroeder-Gardner

Michelle Schroeder-Gardner and her husband (and their two dogs) are new RVers, but have quickly fallen in love with it. After traveling around the country in their car and tent camping, they soon realized that RVing was something they needed in their lives. When she isn¹t blogging for us about the open road, Michelle runs an online business and a personal finance blog, which you can find at MakingSenseofCents.com.

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