A Guide To RV Financing

Did you know that over 70% of RV buyers rely on financing options? After all, it's rare to have thousands of dollars available to buy the RV outright. RV financing is a great strategy for getting your camper on your ideal schedule.

We've created the following guide to RV financing. If you have any questions or want to chat about your financing options, visit The Outpost RV. We can even add parts and accessories, an extended service plan, and more to your financing package! Our dealership is based in Middlebury, Indiana, and we also serve those in Kalamazoo, Michigan.

Establish Your Budget

The first step is figuring out exactly how much you can responsibly spend. This accomplishes two goals. First, it prevents you from overextending your finances. Once you create a price limit, you can eliminate all models outside that range...before you fall in love with them. Second, it keeps you from unnecessarily passing on features that you can afford. Making a budget ensures you get the highest quality RV that you can afford.

As you determine your spending plan, it's important to take a few things into account. First, consider all of the expenses that go into an RV purchase. Factor in the costs of aftermarket accessories, storage rental feels, fuel costs, and so on. Second, take a long term view of your finances. RV loan terms can be years long, so think about how your finances may change during that time. 

Gather Up The Down Payment

When you pursue RV financing, you won't need to pay the full cost upfront. But you will likely still need to pay something. Most down payments are around 10% of the RV's sticker price, but some are upwards of 20%.

Keep in mind that it's advantageous to make a big up front payment. You'll end up paying less over time because of lower interest rates.

Look Into Your Credit Score

The size of your loan will be influenced by your credit score. The healthier your credit score, the larger your loan can be. Try to get your credit score over 700 if you can.

Consider The Loan Types

Think about the type of loan you want. Unsecured loans usually have higher interest rates. But the company cannot repossess your RV if you fail to pay. Secured loans typically have lower interest rates and higher borrow rates. But the RV can be repossessed if there's a default on the loan.

Pick The RV Wisely

It's tempting to go for the newest model with the most luxurious features. But remember that RVs suffer from depreciation in the same way that vehicles do. An expensive camper paired with a long term loan can cost you an arm and a leg with interest payments.

It's best to stick with the more budget-friendly option. Try to make the largest down payment that you can afford, which reduces the amount of money you will need to borrow and pay off the loan.

We hope you found this guide to RV financing helpful. When you are ready to discuss your RV financing options, chat with the experts at The Outpost RV. Our friendly staff can answer questions and help you figure out what works best for your budget and needs. We can include options such as accessories or an extended service plan into your financing package. You'll find our dealership in Middlebury, Indiana. We also proudly serve those in Kalamazoo, Michigan.