The Basics of RV Financing & Loans

Want to buy an RV, but don’t have the cash to pay for it in full? That’s okay! Around 70% of RV buyers actually use financing and loan options to purchase their RVs, which allows them to put money towards accessories and travel expenses so that they can actually use the RV once they’ve bought it. Here’s what you need to know about RV financing.

Check Your Credit Score

A high credit score is likely to boost your chances of getting a good loan with a suitable interest rate. Do whatever you can to raise your credit score if it’s not in the “good” or “excellent” range by paying down credit card balances. You should aim for at least a 700 score. Anything under 550 is a poor score, which will likely get your loan application denied.

Save Up a Down Payment

No matter what type of financing you use, you’re still going to need to save up 10% to 20% of the total cost of the RV as a down payment to be made up-front. You should analyze your finances to see how you can save up for this, in addition to making sure that you can afford monthly payments on your RV loan.

Understand Loan Types

When obtaining an RV loan, you can choose between secured and unsecured loan options.

Secured loans use your RV as collateral, which means that the vehicle can be repossessed by the lender if you default on your payments. These loans do tend to offer you higher borrow amounts and lower interest rates, though.

Unsecured loans don’t use your RV as collateral, but if you default on your payments, you may suffer wage garnishment and a significant drop in your credit score. Unsecured loans usually have higher interest rates and lower borrowing amounts.

Come see us at our dealership in Vernal, UT, to discuss our RV financing options and check out our wide variety of new and used RVs for sale. B&D RV Center is proud to be your Tri-State area family-owned and operated RV dealership, serving the cities of Salt Lake City, Utah; Grand Junction, Colorado; andRock Springs, Wyoming.