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How to Finance an RV Purchase

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How to Finance an RV Purchase

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RV loans can be unsecured personal loans you get from online lenders, or secured vehicle loans from banks and credit unions. Rates and terms vary by lender, and the rate you receive will depend on your credit score and income, the age of the vehicle, and if the loan is secured by the RV, or unsecured.

Before hitting the road, consider most financial experts don't recommend taking a personal loan for discretionary purchases. So, unless you’re going to live in your RV, carefully consider the costs of financing – including monthly payments you may owe longer than the life of the vehicle. If you do take a loan, have a solid plan to pay it off.

Unsecured loans vs secured vehicle loans

RV loans, whether secured or unsecured, are repaid in fixed monthly installments, typically over a period of two to 20 years. Compare the potential benefits of financing an RV with an unsecured personal loan or a secured vehicle loan.

Reasons to finance an RV with an unsecured loan

unsecured loan
Pre-qualificataion

Online lenders allow you to prequalify for a personal loan, to compare your potential rates and loan terms with no impact to your credit score

Fast time to funding

Online loans can be funded as fast as the same day, depending on how quickly you submit the required documents

Less risk

You may not lose your RV if you fail to repay an unsecured personal loan (although there are still consequences to defaulting)

Reasons to finance an RV with a secured loan

secured loan
Lower rates

Some secured vehicle loans may have lower rates than unsecured loans, as the loan is guaranteed by collateral

Approval for bad credit

Lenders may be more willing to approve your loan request if you secure the loan with the RV

Larger loan amounts

You may also be able to finance a larger RV purchase

Questions to ask yourself before applying

secured loan
What’s the true cost of an RV?

Factor in expenses such as gas, insurance, storage, sales tax, repairs and maintenance to determine the RV's total cost.

These costs should fit within a budget that covers your needs, wants, savings and debt payments. Aim to keep savings and loan payments at 20% or less of your income.

Should I build my credit score first?

Credit score is a major factor in loan approval, and it impacts your rate and loan terms. Consider building your credit score before applying for an RV loan.

Can I rent an RV instead?

Renting an RV may be a faster and more affordable way to get on the road. It also lets you test out a vehicle before committing to a purchase. RVs can be rented from local dealerships or through peer-to-peer rental marketplaces.

 

 

Check out our Recreational Loans and get preapproved online. You can use our loan calculator to determine the affordability of an RV loan. Enter your expected loan amount, repayment term, and your credit rating to see estimated monthly payments, interest and total payments. And, don’t forget we offer insurance services, too!