We Finance

When you are looking to buy an RV, it can be a daunting time with several options and big decisions ahead of you. Let We Finance help you with the difficult decisions and offer you the advice you need.

Our financing team is both practical and understanding of the need to get out and explore. We can help you explore competitive loan rates, with low interest and low down payments.

You should never have to choose between paying a bill and enjoying your life, so let us help you. We understand that these are life-changing decisions so let the experts do the work.

How To Qualify For A RV Loan

Securing the correct financing for an RV loan can be very difficult. In fact, it can be far more difficult than getting approved for something like a car loan.

Depending on the length of your loan, the amount your borrowing and other factors, you might find an RV loan to be similar to a home mortgage. This is nothing to take lightly so the correct research must be undertaken before investing.

Check Your Debt-To-Income Ratio

Some lenders will offer RV loan programs for borrows who have bad credit however they will look at a lot of factors like your debt-to-income ratio. They will also look into your employment history and current income.

Having a lot of debt of a lack of income are some of the main factors that could stop you from being approved.

Save Money For A Down Payment

Borrowing a smaller amount of money will reduce the risk to the lender and make you more likely to get approved. If you have money saved, then you will be able to get a smaller loan and it will pay off in the long run.

There is also the added benefit of paying less interest in the long-run due to the loan. You should also consider waiting and working on improving your credit to help increase your chances.

Be Aware Of Interest

RV loan interest rates range between 4% to over 15% which will add up in the long term. The rates will vary on several factors from the lender, your credit, amount borrowed and down payments.

It is important to work out how long it will take you to pay off the loan. If you borrow 40k at a rate of 6.5% your total costs will be 14.5k if it takes 10 years to pay off. However, if it takes you 20 years you will pay over twice the amount.

You Could End Up Owing More Than The RV

Some lenders require 10%, some require 20% and some don’t require a down payment. While this sounds appealing – if you put little or no money down, you could end up owing more than the RV is worth.

RVs lose their value very quickly, especially if it is brand new. If you plan to sell or trade it later, you might not be able to get enough money back to pay off your loan.

What You Should Know About RV Financing

There are many types of RV’s but one thing is guaranteed – they will give you the freedom to hit the road and explore as much as you desire. However, there is no debating the fact they are expensive vehicles.

They have all the comforts of a home and make traveling a luxury. With that in mind, their costs range from anywhere to the tens of thousands to the price of a home.

That aside – you will also have to pay for fuel and maintenance – all in all, it’s a big investment. So with that in mind, you need to educate yourself about the loan you will take out.

Here are some things you should know:

The RV Might Be Used As Collateral

Like with auto loans, you might also have to use the vehicle itself to secure the RV loan. That way it is used as collateral if the loan collapses.

This is something to consider if you can’t make your monthly payments and the possibility that it could get repossessed. However, there is another option.

Some lenders will offer an unsecured RV loan where you don’t have to offer any assets or the RV as collateral. This is a more appealing situation but you need to be aware that they will often charge higher interest rates.

If your credit score is lower, you might find it harder as lenders will deem you high risk.

Different Lenders Offer Loans

RV dealers have financial arrangements with some lenders that buyers might find appealing as it is easy to buy and lend all in one go. However, this isn’t the only way you can get financing.

You will find that banks, credit unions, and online lenders also offer RV loans. To get the best loan, try comparing options from multiple lenders.

Try to find the lowest interest rates or reduced fees and compare them to the dealership deal that is offered. You might find that financing through somewhere else is more expensive, but at least you are certain!

Do The Maths

You want your RV to best the best time and provide you with years of fun and wonderful memories. However, you need to be certain that it is the right time to purchase one – if you can barely afford it then you won’t be able to enjoy your time.

Make sure the costs and financing make sense to your own financial goals. Only you know what the limit is and make sure to try and take in every expense.

Your budget should be rigid and don’t get tempted by the excitement of a new purchase and get carried away. When the time is right, you will have the best experience.

Contact Us

Get in contact via phone or email to get personal advice that is tailored to your situation. We can help with personalized finance and budgeting inquiries – just ask!

Whether it is online or in-person, you will receive expert guidance with no strings attached. We’re looking forward to hearing from you.