All You Need to Know About Financing an RV
If you want to purchase an RV without making too many financial adjustments, we suggest you consider getting it financed. Recreational vehicles are big-ticket investments, and RV financing helps you get your preferred camper even if you don’t have all the cash up-front. You can set a monthly payment schedule that suits your budget and repay your RV over several months or years.
As your local camper dealer, we at Airstream of Wyoming are well-versed in RV financing. Our experts have created this guide to help you understand what to expect when opting for an RV loan. Keep reading this guide to learn more, and for more information, contact us in Etna, WY.
Set a Realistic Budget
The first thing to do when getting your RV financed is to establish a realistic budget. This will help you eliminate options outside your budget and focus on models you can afford. When planning your budget for an RV loan, remember that you will need to pay 10-20% of your model’s sticker price upfront when buying it. Calculate your savings and determine how much you can pay at the dealership. You will also need to pay monthly installments with interest for the entire tenure of your loan, so figure out expenses before finalizing your decision.
Save for a Down Payment
As stated earlier, you must make a one-time payment when buying your RV. The down payment you make will help you lower your interest rates. Try to save up the maximum amount you can, and you can pay off your camper sooner and more comfortably than you think.
Consider Your Credit Score
Your credit score is important—the higher your score, the better your loan terms can be.
Most RV financers will likely check your credit score and history before approving your loan. They want to ensure you possess good credit, which indicates your ability to repay the loan within a given timeframe. A good credit score and history also affect your chances of getting a profitable finance solution.
Select a Loan Type
At this point, you will want to select a loan type to pursue further. Essentially, there are two types of loans—secured and unsecured.
People with a poor credit score, usually 550 or below, will want to apply for a secured loan. These have a higher interest rate, and the lender uses the RV as collateral. If you default on payments, the lender can repossess your RV.
If you have a decent credit score—700 or above—you can opt for an unsecured loan. This type of loan features better terms and don’t need you to use your RV as collateral.
On that note, visit Airstream of Wyoming to get your concerns addressed by our finance experts. We can also help you select a loan type that matches your credit score and history and get you on the road with your preferred RV sooner than you think. Our friendly team can also assist you in setting up a plan and help create a customized solution for you. Our dealership is in Etna, WY, and we proudly serve Jackson and Casper.