A Beginner's Guide To Financing Your RV
70% of RV buyers use financing for their purchase - and it's easy to see why. Financing allows families to get the RV now...rather than saving for decades to pay for the full cost upfront. Enjoy years of traveling adventure by making monthly payments instead!
The following guide breaks down the RV financing process. If you have any questions or want to shop campers for sale in Iowa, contact Camp Site RV. Our dealership is located in Cresco, Iowa. We also serve those in Cedar Falls, Iowa, Rochester, Minnesota, and La Crosse, Wisconsin.
1. Make A Budget
Think about how much you want to spend on an RV. This will help narrow your search to a more manageable number of models. It will also help when budgeting for the down payment and interest rates.
2. Get The Down Payment Together
Financing options usually require a down payment upfront. This typically falls between 10% and 20% of the camper's total cost. Start putting aside that money now so that you'll be ready once you find your perfect RV. Remember that paying more upfront will save you in the long run (due to the effect of interest rates).
3. Look Up Your Credit Score
Your credit score will influence the RV financing process. Take a minute to look it up and, if necessary, work to improve it. Try to have a credit score above 700. Higher credit scores are better, especially when it comes to camper financing.
4. Pick A Loan Type
There are two main types of RV loans. First, there are unsecured loans. These come with higher rates, but your camper cannot be repossessed if you fail to make your payments.
Then, there are secured loans. These have lower interest rates and higher borrow rates, but the RV serves as collateral. If you default on the loan, the camper can be repossessed.
5. Take A Long-Term Approach
It's easy to get excited about getting a high-end RV right away, but remember to factor in the expenses due to interest rates. You don't want to overextend your budget! Try to get the highest quality camper that you can afford in the short and long term. Think about how long you hope to use the camper for and purchase the model that best will suit your family's needs during that length of time.
Want to talk more about RV financing? Have questions still unanswered? Ready to start exploring campers for sale in Iowa? The experts at Camp Site RV are happy to help with it all. Reach out or stop by our dealership in Cresco, Iowa. We also proudly serve those in Cedar Falls, Iowa, Rochester, Minnesota, and La Crosse, Wisconsin.