How to Avoid a Bad RV Financing Deal

Considering buying an RV? Learn about RV financing and how to ensure you avoid a bad financing situation with this Cruise America guide.
Cruise America RV driving near the mountains.

To put it lightly, investing in an RV is a big deal. Think about what you’re getting into, the commitment you’re pledging to make! You’re putting your money — and it could be a lot of money — down on a massive vehicle. A vehicle with the potential for massive financial outlays in the future for you to maintain and service that RV to keep it in working order. 

The last thing you need when getting into the life of an RV owner is a bad financing deal that causes you to spend even more money over time than you need to.

How To Avoid a Bad RV Financing Deal

Before you jump into the deep end with a bad RV financing deal in hand, it’s worth seeing what you can do to avoid one. 

Consider ALL of the Costs

One of the biggest mistakes people make when financing an RV is not considering the full costs of RV ownership. It isn’t just the purchase price itself; an RV can impact your entire household budget. From insurance to maintenance to storage, an RV can cost money even when unused for months. Then, add in the costs for campsite reservations and fuel when on a road trip, plus the potential for repairs if something happens.

In short, an RV will have a considerable, long-term impact on your expenses. Yet too many people only think at the moment about their dream of owning an RV. It becomes an impulse buy. Owning an RV is absolutely worth it, but you’re basically buying a house on wheels, so you need to plan accordingly.

In keeping with that idea, bear in mind that to get an RV loan, you need to show proof of RV insurance (much as you have to do when buying and closing on an actual house). Yet more money you’ll have to pony up before you can grab that RV, so again — plan for it!

Consider Buying Used Instead of New

Another thing you need to think about when buying an RV is its age. A newer, top-of-the-line RV is tempting…especially if you want to live in one full-time. But do you have the budget for it? Can you handle the down payment for it, which goes up as the price goes up?

One way to avoid such an RV financing faux pas is with a pre-owned RV instead of a brand-new vehicle! The total cost will be much lower than it would be for a new RV, the down payment will be less, and your monthly payments will also be much lower than if you bought a new RV. RV sellers such as Cruise America often have great deals on used RVs, so keep an eye out!

Keep an Eye on Your Credit Score

If you haven’t checked your credit score in a while, do it before you even consider buying an RV. Your credit score will impact any RV financing rates you’re presented with, so you probably want to monitor your credit for months before trying to buy. To get the best RV financing rates, you need an excellent credit score (above 700).  

You may still finance an RV with less than excellent credit, but you won’t be getting the best rates or deals that you could. If you need to make changes to boost your score before buying an RV, don’t delay — it could take a while to impact your score positively.

Keep an Eye on RV Financing Rates

Pay attention to auto financing rates if you’re getting an RV loan. During the pandemic, mortgage rates sank to historic lows, enabling many people to buy homes that might ordinarily have been shut out of the market. Mortgage rates have not only bounced back but have since risen to historic highs. The story is much the same for those looking to finance a car or an RV. 

Don't Automatically Go With an RV or Personal Loan

You may want to try to get a Home Equity Loan, as that could offer both the best rates and terms for repayment. If your home was a relatively recent purchase, though, you might not yet have enough equity available. If you do have enough equity, a Home Equity Loan (a.k.a. second mortgage) for RV financing is better than getting a personal loan or even an RV loan.

Avoid a Bad RV Financing Deal With Cruise America

Whether you’re planning on buying an RV for summer journeys or want to own an RV so you can make it your full-time home on the road, you’re going to have to consider how to finance it. There are too many ways to get yourself into a bad RV financing deal, but Cruise America can help you navigate your journey to RV ownership. 

Cruise America’s stock of pre-owned, pre-loved RVs can help make your RV ownership dreams come true — and also ensure you avoid the pitfalls of bad RV financing deals! Visit Cruise America today to see what used RVs are for sale, and how you can make a Cruise America RV your own!

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