- If you're considering an RV purchase, know what you want before you start looking, and be patient.
- Buy locally to maintain a connection with the dealership if anything goes wrong with your RV later.
- Get the best deal on financing and insurance by shopping around and comparing offers.
Introduction
RV buying has flourished since 2020, as travel trailers, campers, and other types of recreational vehicles offer a safe way to get out of the house with family.
The appeal of RV living and travel
"RVs can be a very affordable way for people to travel, especially in a time where people are a little bit more hesitant to get on a plane," says Phil Ingrassia, president of the National RV Dealers Association.
But, pandemic or not, the process of buying an RV is largely the same as it has always been. Ingrassia says that the process is similar to experiences you've probably had before. "If you bought a car, you're going to have a similar experience at an RV dealer," he says.
Here's what you need to know about the process if you're thinking about buying an RV.
Understanding RV financing
Types of RV loans and financing
Financing an RV purchase is similar to that of financing a car purchase. "At an RV dealer, you can bring your own financing," Ingrassia says. Like buying a car, getting pre-approved for an RV loan before heading to the dealership can help give you an idea of what your rate could be, and give you a starting point for negotiating.
Think about what you want
RVs come in many different shapes and sizes, from simple, towable pop-up campers to full-size motorcoaches. Ingrassia says two questions will largely determine what size RV you need. "How long are you going to be in the unit, and how are you going to use the unit? Are you more of a rustic, backcountry camper, or are you going to be in a KOA that's got a pool?"
Ingrassia also urges shoppers to think about their current car or vehicle before buying a camper — it may or may not be a good fit. "The bulk of RVs being bought and sold right now are on the towable side, and I think people need to take care to match their tow vehicle that they already have with the proper RV," he says.
Whether you're planning to tow with an SUV or a super-duty truck, make sure your tow vehicle can handle the load before you buy. Information on this should be available in your car's manual or manufacturer's website. And make sure that your towing vehicle has a tow package already attached — if not, you may have to get one installed.
Evaluating your financing options
Dealer financing
Like car dealerships, financing is often available at the dealership. "Dealers work with national lenders who are very experienced in RV lending and can give you very competitive rates," Ingrassia says.
Getting several offers, both on your own and through the dealership, can help you make sure that you're getting the lowest interest rate possible.
Additional financing considerations
Shop close to home
It can be tempting to go a distance to pick up your RV — after all, you have a place to stay once you get there. But Ingrassia says buying close to home is often a smarter choice, since you'll likely need to work with the dealership again in the future.
"We always encourage folks to buy locally, within a comfortable driving distance of their home," he says. "RVs are homes on wheels, and they do require maintenance, and things can rattle around and get broken. If you need service on any of the systems in the unit, like the electrical or plumbing, you've got a dealer who you've done business with who can help you out."
Exploring insurance and warranty options
Like a car, an RV will need to be insured before you can take it home. Shopping around for your RV insurance is a good way to save, getting several options and comparing them to find the policy that offers the most coverage for the lowest premium.
Ingrassia says that RV insurance options have expanded in recent years. "Some of the major carriers, as RVs have gained popularity, now have RV programs," he says. If your insurance company offers RV insurance, bundling your policy with a homeowners insurance or car insurance policy can make it cheaper.
But, Ingrassia says that anyone having trouble finding a policy can ask a dealership. "If you are concerned about insurance, dealers can give you some guidance there as well."
FAQs
What credit score do I need to finance an RV?
While requirements vary, a good credit score (usually above 670) can help you secure more favorable loan terms for an RV. Lower scores may still qualify but with higher interest rates.
Can I finance an RV with bad credit?
Yes, you can finance an RV with bad credit, but expect higher interest rates and possibly stricter loan conditions. Some lenders specialize in loans for those with less-than-ideal credit.
How long can RV loans last?
RV loan terms can range from short-term (5-7 years) to long-term (up to 20 years), depending on the RV loan amount and lender policies.
Should I use dealer financing or seek a loan elsewhere?
Compare offers when shopping for RV loans. RV dealer financing might be convenient, but banks, credit unions, or online lenders could have more competitive rates.
How much down payment is typically required for RV financing?
Down payments for RV financing can range from 10% to 20% of the purchase price, but putting down more can lower your monthly payments and interest costs.
