How to Get an RV Loan
When purchasing an RV, you don’t have to cover the full sticker price up front and on your own. In fact, over 70% of RV buyers make use of financing to purchase their RVs and there are a number of reasons for this. Financing your RV helps you to get the camper you want immediately, then pay it off over time.
Schwab’s RV World, located in Leduc, is your Alberta RV dealer. Read on to learn more about how to finance your RV and secure an RV loan.
1. Construct a Budget
The first thing you’ll want to do before you purchase your RV with financing is to figure out your budget. Look up the costs of RVs that match your needs so that you can arrive at a ballpark figure. Remember that you can always look into used models to save more money, but a high-quality new RV is likely to last you for many years.
Determine just how much you can afford to pay each month on a loan. Some loan terms are only for a few years, requiring much higher payments each month, while other loans are more long-term, sometimes as long as 20 years, which means you’ll make lower payments each month, but probably end up paying more in interest.
Bear in mind that you’re not just worrying about the sticker price of your RV when you build your budget. You’ll also need to factor in the costs of fuel, maintenance, storage and accessories.
2. Save Up Your Down Payment
While you don’t need to pay the entire cost of your RV immediately when you finance it, you do still need to pay a portion of the price in the form of a down payment. A suitable down payment is generally between 10% and 20% of the full purchase price of the RV. The more money you can put down at purchase, the less you’ll need to borrow and the lower your interest rate will be.
3. Consider RV Loan Types
The two main types of RV loans are secured and unsecured loans. The type of loan you’ll qualify for will depend on your financial situation, among other factors. A good credit score is one of the most important indicators of healthy finances, so it’s good to check and know your credit score and do everything you can to raise it.
An unsecured loan has no collateral on it, but the rates will be higher and you may not be able to borrow as much. Secured RV loans use the purchased RV itself as collateral, which means that the lending company can repossess your RV if you fail to make payments. Secured loans have lower interest rates and generally allow you to borrow more money up-front.
Visit our dealership in Leduc, AB, to check out our full stock of new and used RVs for sale. Our finance department is ready and waiting to assist you with your RV purchase however we can. Schwab’s RV World proudly serves greater Edmonton, AB.