What You Need to Know When Financing Your RV

Are you going to be able to pay cash for your new RV? Probably not. Most people don’t have the kind of money on hand to simply write a check for an RV, which is why RV financing is an important topic. Just as when purchasing a car, you will likely need to work out financing for your RV in order to close the deal and drive your new rig off the lot by the end of the day. For help with the financing process, consider the following tips in advance of your trip to see the dealer.

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Be Aware of Your Credit Score

Before you set out to make your purchase, take a moment to research the current status of your credit score. If you have good credit – a score of at least 640 is usually a pretty good place to start – you should qualify for favorable loan terms. If you know you have a good credit score and the bank is still trying to stick you with a high interest rate, you will know that you can haggle with confidence. Agreeing to a high interest rate when you should have been offered a lower one is a quick way to waste money month after month.

Don’t Get In Over Your Head

It is tempting to just look at the monthly payment on your loan when you are deciding whether or not you can afford a given RV. However, there are other costs associated with your RV ownership, including the costs of using the vehicle along with your monthly insurance premium. Be sure to take all of this into account before you sign on the dotted line.

Don’t Be in a Rush

If you are going to finance your purchase through the lending available at the dealership, you might be tempted to just take the first offer that comes your way. While that might be okay if it is a solid offer, you don’t need to agree right away just to get the deal done. If you are unhappy with some of the terms of the loan being offered, consider asking for other options or just walking away from the deal altogether. There are plenty of RV dealerships out there, and they would all like to fight for your business if you give them a chance.

You Can Get Prequalified

To add some bargaining power to your corner when you head to the dealership, consider going to your bank in advance to get prequalified for an RV loan of a certain size. With this qualification in your back pocket, you will have some leverage as you won’t be tied to the dealers financing options. As long as your credit is good and your bank offers a variety of loan products, you shouldn’t have much trouble at all securing this kind of prequalification.

Financing the purchase of a new RV can be a little bit intimidating, but it is really no different than the financing process for any other kind of vehicle. By doing your homework in advance you can be armed with the information you need to make smart decisions. Good luck!

 

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