Camper Financing: How To Choose The Right Financing for Campers and RVs

If you’re looking for prolonged road adventures with your family and loved ones, RVs and campers are good vehicle options. You can save money for hotels and you can even cook your own meals in the van. Thus, it can be a good investment to get an RV or a camper especially if you’ll be using it often.

Looking for financing or loan to buy an RV is not that difficult since there are many options that you can consider. Looking through the internet, you’ll see that many banks and online lenders use financial SEO to get the word out on their offers.

There are multiple ways to get an RV loan. But, you have to consider a few things first:

• Credit Score - This is a metric used by banks and other financial institutions in assessing a potential client’s risk when lending them money. The higher your credit score, the lower your risk and the better chance you have at borrowing money.

As with applying for any type of loan, your credit score would matter a lot. The better your credit score, the better the loan terms you’ll get. So, if you’re planning to get a camper financing, you should start building up that credit score.

• Cost of the RV - The actual cost of an RV is not just the price of the RV itself. You have to consider the extra expenses for the insurance, gas, maintenance, storage of the vehicle, and other miscellaneous expenses. 

You have to consider all these factors when thinking of buying an RV and whether you can afford all the extra expenses.

• Your Income - Your income should be able to afford you an RV if the amount that you have to pay for the loan is less than 20 percent of your income. If not, then you should consider saving for it first or secure a loan with more flexible terms.

• Type of Loan - There are 2 types of loans that you can avail of in order to get an RV: a secured loan or an unsecured loan. Each type has different sets of pros and cons and can be applied to different types of circumstances. So, whatever your life’s circumstances are, there’s a different type of loan that you can avail of.

Once you’ve evaluated yourself, you can then find a lender that would be willing to finance your RV loan. 

Here are different types of lenders that you can avail of:

1. Banks

Going to your bank to get a secured loan in order to get an RV would be easy if you have a good credit score. The rate and terms for the loan they offer are also very competitive. However, you should also prepare at least 10 percent of the cost of the RV as a down payment for the vehicle.

Different banks have different terms and rates for a secured loan. For example, Wells Fargo can approve a secured loan of up to $100,000 for a camper or other types of recreational vehicles. You may even get discounts if you’re already a customer of the bank.

U.S. Bank also approves secured loans, ranging from $5,000 to $150,000, for RVs that can either be new or second-hand vehicles. Thus, giving you more options to choose from. You can even apply through the phone if you’re unavailable or unable to go to a branch near you.

Although getting a second-hand or used RV may be cheaper to buy, it may also be more expensive to maintain – something to think about first.

If your credit score is great, a banks’ average annual percentage rate (APR) is 5.49%.

2. Credit Unions

Credit Unions are also a great place to find financing. They’re non-profit groups that cater to their members with low-interest rates. Just like banks, different credit unions have different terms and rates for their members. Your credit score may also play a role in the rate and terms of your loan even if you’re a member of the credit union.

If you’re not a member of any credit unions, it might be better to apply for membership first. Credit unions are cooperative financial groups that cater to people in a specific line of work or based on where they live. Thus, finding one that you can apply to will not be a difficult task.

Credit Unions are a great option if your credit score is lower than the bank’s requirement to get financing for an RV.  In some cases, they may be offering a lower APR compared to your bank. For example, First Tech Federal Credit Union’s APR starts at 5.34%, which is lower than the APR of most banks.

3. Online Lenders

Just like banks and credit unions, online lenders also offer different rates and terms in financing an RV loan. If you have a great credit score, you can get an APR for as low as 4.29%. Some even offer discounts and rebates if you opt for automatic payment options. However, unlike banks and credit unions, online lenders often offer an unsecured loan. 

You may also choose to get a personal loan through online lenders. Personal loans can amount up to $40,000 and it can be used for anything, so the money you’ve secured can be used to buy an RV.

If you’re considering getting financing from an online lender, you can pre-qualify to get an idea of how much your APR would be based on your situation. It won’t even affect your credit rating.

Many people often choose to get financing from an online lender because they don’t need to make a personal appearance and they’re fast when it comes to releasing the funds that you need as long as you pass their qualifications.

Conclusion:

RVs, like campers and trailers, can be good investments and you may even rent it when you’re not using it. However, they’re costly and they have expensive maintenance, on top of the other expenses. 

So, before you decide to get one for yourself, think it through carefully. Evaluate your situation and ask yourself if it’s worth it and if you can actually afford it. Once you’re finally sure, then you already know that there are many options that you can consider when looking for ways to finance your RV.