If the year 2020 has taught us anything, it’s that we need to live life to the fullest and make beautiful memories while we can. A recreational vehicle provides you with such an opportunity.
Having spent the better part of a year cooped up in your home, now is a good time as any to get on the road and experience the world outside. If the idea of owning an RV appeals to you, here’s all you need to know about financing and the various options available to you.
What Is RV financing?
An RV is a big investment and to own one, most buyers rely on some form of financing. RV financing is a long-term loan to purchase a recreational vehicle. You can get an RV loan from a bank, credit union, or RV dealership.
You can also finance your RV with the help of online lenders like My Financing USA. Each of these options comes with a range of benefits and it’s up to you to decide what suits your needs. Just like a car purchase, the RV itself usually serves as collateral for the loan so you will not be required to put up any other collateral.
I have good credit. How can I get RV financing?
Having good credit already places you ahead of the curve with your RV financing. While there’s more to the process than a buyer’s credit score, lenders are more likely to consider applications from serious buyers with great credit.
With that out of the way, here are steps you need to take to qualify for an RV loan.
1. Decide on the kind of loan you want
RV loans are either secured or unsecured. Secured loans are guaranteed by collateral and their rates are determined by the type of RV you intend to purchase. A benefit of this option is that individuals with bad credit also have a good chance of qualifying.
However, you may need to make a down payment. Unsecured loans, on the other hand, are usually provided by online lenders. They require no collateral, and you may undergo a prequalification process where you compare your loan terms and annual rates.
2. Used or new RVs?
Both new and pre-used recreational vehicles come with their share of pros and cons. A new RV is coming straight off the assembly line, so you don’t have to worry about wear and tear or repairs. You also have the option of customization.
Still, new RVs are considerably more expensive and not all features you want would come from the manufacturer. In such situations, you’d have to spend more on those additional customizations.
However, if you have a tight budget and don’t mind restoring a used RV, you can go the route of purchasing a used RV.
3. Compare lenders
Do not make a decision based on the first offer you get. Shop around with different lenders and compare their rates. Getting different quotes can help you properly assess your options and help you save costs.
When doing your research, be sure to ask questions about minimum credit requirements, maximum loan terms, hidden fees, as well as tax advantages that may apply.
Good credit or not, with My Financing USA, you can explore different RV rates and terms nationwide, and have your application approved in record time. Take a chance today and turn your RV dreams into a reality.
