How to Finance an RV

RV Financing

What does it cost to buy an RV? The price range is huge.

At the lower end, if you are grabbing a used, vintage vehicle, you might find yourself paying a few thousand dollars (expect a few thousand dollars more in immediate repairs and maintenance). At the upper end, if you are going for a premium luxury motorhome, you can expect to pay $500,000 or more.

Most RVs cost somewhere in between that range.

Paying $100,000-$200,000 for a new RV is typical.

Some people can afford that type of cost upfront. But a lot of buyers will not be able to pay the entire cost of a new RV immediately, and will need to turn to RV loans for assistance.

In this article, we’re going to go over the basics that you should know about RV loans. We will then introduce you to some financing options to consider.

RV Financing 101

Financing an RV is a lot like financing any other major purchase (i.e. a house or a car). You borrow from a lender to pay for the vehicle, and then you make payments over the loan term to the lender until you have finished paying in full for the RV.

How long is an RV loan term?

How much you borrow will impact your loan term, as will your choice of lender.

If you are borrowing a small amount, you might have a loan term that is just a couple of years.

But if you are borrowing a large amount, your loan term could be 20 years.

As with any other type of loan, you will have to pay interest. So, you will need to do the math when you receive an offer. Add together the principal and the interest you can expect over the loan term, and make sure you are confident you can afford it.

What your interest rate will be will depend on the down payment you make, your credit score, and other financial factors.

One more consideration when you are making a decision to finance an RV is depreciation.

The reality is:

  • RVs lose value rapidly. In just a few years, a new RV will be worth significantly less than half of what you originally paid for it.
  • A lot of people sell and replace their RVs really often. It is not uncommon for RV owners to purchase new vehicles every 5-10 years. You need a lot of money to be able to do this, because selling your previous vehicle that has depreciated in value will not be sufficient to finish paying off the loan on that vehicle.

Note that you do not have to replace your RVs every few years. You just need to be willing to cover the maintenance costs.

If your RV becomes older than 10 years, you also will need to conduct a more extensive search to find parks where you are welcome. Many RV parks have a rule against vehicles that are older than ten years. Some don’t like vehicles older than five.

Nevertheless, it can be a lot less expensive over the long haul to keep up the RV you are buying today than to keep replacing RVs at a loss every few years.

Who Has the Best RV Financing?

Now that you understand the basics of RV loans, let’s take a look at a couple of solid options for RV financing.

Good Sam RV Loans

Good Sam is a big name in the world of RVs for a good reason. This company is renowned for its great rates and reliable service.

If you join the Good Sam Club, you have the option of financing your vehicle with an RV loan through the Good Sam Finance Center.

You can take out a new loan to purchase a vehicle, or you can refinance an existing RV loan for a more affordable rate.

Here is the table of APRs and loan terms that Good Sam provides:

 Pleasure Use RV Loan Terms & APRs*    
Loan Amount5 yrs7 yrs 10 yrs 12 yrs 15 yrs20 yrs 
$150,000 +4.39%4.49%4.59%4.69%4.79%4.89%
$50,000 – $149,9994.39%4.49%4.59%4.69%4.79%4.89%
$25,000 – $49,9995.29%5.39%5.59%5.69%5.89%– 
$15,000 – $24,9995.89%6.29%6.59%6.79%
$10,000 – $14,9996.19%6.79%7.19%7.69%

Good Sam RV Loan Features:

  • There are no pre-payment penalties on Good Sam RV loans.
  • The maximum term of the loan depends on the amount. The shortest term is 4 years while the longest term is 20 years.
  • The maximum loan amount is $2,000,000.
  • The minimum loan amount is $10,000.

Good Sam RV Loan Requirements:

  • You need a minimum credit score of 690.
  • As of 2021, you can only finance an RV that is a 2008 model or newer. Rates are higher for 2008 and 2009 models.
  • The down payment amount depends on how much you are borrowing. Down payment requirements range between 10% and 30%.

Mountain America Credit Union RV Loans

Another option worth considering for RV financing is to go through a bank or credit union. For example, Mountain America Credit Union, which is one of the top 13 credit unions in the country, offers competitive RV loans.

Mountain America Credit Union RV Loan Features:

  • Fixed rates are available with APRs as low as 5.24%.
  • Fixed terms as long as 15 years are offered.
  • You can get this financing at the majority of dealerships.
  • You do not need to pay an application fee.
  • If you have a MyStyle Checking account with Mountain America, you can get discounts on your rates. This may be a sufficient reason to consider opening an account with the credit union if you do not have one already.
  • You can call the credit union to get pre-qualified.

Mountain America Credit Union RV Loan Requirements:

Mountain America does not list specific loan requirements on its page for RV financing. Nevertheless, you can expect that the credit union will check your credit score, income, and other financial metrics when deciding whether to offer you a loan.

You will also need to make a suitable down payment to qualify for the amount and loan term you are requesting.

Get the Financing You Need to Embark on Your RV Journey Now

If you are ready to hit the open road in search of adventure, you may be closer than you think to owning your own RV.

To get the financing you need to purchase your dream vehicle now, click on any of the links in this article.

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