How to Find Financing for Your RV
There are several advantages to recreational vehicle ownership. One of which is the myriad of sources through which RV financing can be obtained. Financing your RV may allow you to buy more RV for your budget than paying cash. There are a great many differences, however, from buying a RV to buying a home or a regular vehicle.
When purchasing a RV, you will need to have your credit in order. RV's, although more and more people are using them as their primary homes, are still considered luxury items and this can make them harder to obtain credit lines for. This is not to say that a few unfavorable marks on your credit will hurt your chances all together. You will need to fill out paperwork correctly and honestly. This will help you obtain the financing you want at the payments you can afford.
Don't go crazy when searching for the interest rate. Interest rates on your house loan or your RV loan are just a small piece of the puzzle when calculating your monthly budget. Getting a payment that is affordable and reasonable to your budget will be important to your travels. It will do you little good to have a tiny interest rate but a sky-high payment every month.
However, just like when dealing with a house or a vehicle, get all your financing in order first. Then when you show up at a dealership, that dealership may be able to offer you something better. If not, you still have a deal you are satisfied with. Don't let financing ruin your RV experience. Plan ahead and get the best deal possible so that you are ultimately satisfied with your final purchase.
Another good tip is to shop around and do some research before you finance your RV. Researching what you want is important to you and your budget. Look closely at amenities and the actual value of the coach you have in mind. Buying a motorhome is a larger purchase than an automobile, and should be handled even more carefully when it comes down to numbers. Know what you are after and what it is worth, not only on the open market, but also to you.
Having a big down payment is not necessarily a must when you are investigating RV financing. Some banks and finance companies will charge a higher interest rate for a smaller loan than they will a bigger one. This is simply because a larger loan can be spread out over a much longer time frame and can generate more income for the bank. There are several institutions that will do zero-down loans on RV's. Again, research will be key in deciding what is best for you and your budget.
Loans on RV's are as numerous as loans on homes and cars. Each loan will be slightly different as well, so know your terms. Smaller loans can be financed for ten to fifteen years. Larger loans can be extended, depending on a number of factors, up to twenty years. Find the time frame that will make you more comfortable and fit into your budget and lifestyle.
Don't forget to research the tax implications on your RV loan. Depending on your unique tax situation, your interest on your RV loan can be considered deductible on your itemized deductions. Check with your tax professional to find out more about tax deductions in your RV.
Advanced planning is the advantage you will need to achieve your RV ownership goals. Researching not only different financial institutes but also the RV's them selves will give you the edge in closing a deal. At the end of the day, you will be riding off into the sunset, content and worry free with your choice!