Finding the right RV often means finding the right financing. From rates to terms and everything in between, there are a number of factors to consider before choosing your RV loan.
While RVs have never been more affordable, a small percentage difference in your loan’s Annual Percentage Rate (APR) could have a big effect on the overall price of the RV.
What are typical RV APR’s? How long will my RV loan last? Can I refinance later on? A little research goes a long way to ensuring you get the best loan APR available based on your budget.
As you start to compare lenders for your new rig, here’s a list of frequently asked questions when it comes to RV APR’s.
RV loan rates FAQs
What is the (APR) / interest rate of an RV loan?
Interest rates will vary depending on your credit score, the overall cost of the RV, the loan duration, and the type of loan. With so many factors, interest rates can range from a little under 8% to over 16%.
What is the average length of an RV loan?
Most RV loans last somewhere between 10 and 20 years. RV loans are more akin to home loans due to the high value. Typically, the longer the loan, the higher the interest rate, which means paying substantially more for the RV overall, even though your monthly payments might be lower.
Will I need a down payment for an RV loan?
Although zero down options are available, most loans require a down payment, especially if you want a more competitive loan. Anticipate paying at least 10% to 20% of the RV cost up front, but keep in mind that a lower FICO credit score (≤700) often requires a higher down payment. And an older RV will also require a more substantial down payment. Keep in mind, the down payment is another form of a lender safety net, so the riskier the loan, the more down payment required.
How much can I get for an RV loan?
RV loan amounts vary anywhere from $10,000 to $2,000,0000 depending on length and credit. You can also find out how much you’ll qualify for without running your credit using an online loan calculator.
How will my credit score affect my loan?
The better your credit, the easier it will be to qualify for a decent RV loan. FICO credit scores above 700 indicate lower risk to the lender and will mean a lower interest rate, as well as a quicker approval process. If your credit score is lower than 600 you’ll want to work to build it up by paying off any outstanding credit cards, or by making timely payments over time on other loans.
Can I refinance my loan?
The short answer is, yes. Even if you didn’t qualify for a competitive APR, you can always work towards improving your credit and refinancing to something more competitive. But your lender might not always allow refinancing. In that case, you can approach your local credit union or bank where you already have an account and relationship.
Are RV loans tax deductible?
In certain cases. When claimed as a second or primary home, the interest on an RV loan is tax-deductible. This varies state to state, so check with your accountant.
Where can I get an RV loan?
Between banks, credit unions, and RV dealerships, you certainly have options for financing your loan. Many banks and credit unions often provide pre-approval loans so buyers can shop RVs with a set, approved budget in mind.
What’s the difference between secured and unsecured RV loans?
Secured RV loans are backed by the asset itself, while unsecured loans don’t require any sort of collateral. Secured loans tend to come with longer terms and larger loan amounts, however if you miss payments you risk repossession of the RV. Unsecured loans have no collateral, but come with higher interest rates and shorter loan terms.
Which loan has better APR (unsecured or secured)?
Since secured loans require using your RV as collateral they are seen as less of a risk to lenders, and therefore come with a lower APR. However, despite having a higher APR, unsecured loans have fewer strings attached and can be more flexible for the borrower.
Ready for a lender?
If you’re looking to finance your RV, Good Sam Finance Center has several flexible loan options and can work with any budget. Contact Good Sam Finance Center for your next loan.