You may be surprised to learn that almost three-fourths of RV buyers make use of financing to complete their purchases. This statistic makes sense, though, when you think about the large sticker price of RVs and how it’s often more reasonable to pay even monthly rates off over time than to try to pay the full price up-front. Here’s what you need to know about RV financing before you use it.
Financing Benefits
Financing your RV purchase takes a lot of the worry and stress out of the buying process. While you do need to have 10% or 20% of your RV’s total cost available to use as a down payment, you don’t have to worry about having the other 80% to 90% immediately on-hand. Instead, you can pay off your RV over a period of months or years with a steady monthly rate. This makes it much easier for most people to become RV owners.
Loan Types
RV loans typically can be either secured or unsecured, with each type of loan having its benefits and drawbacks. Secured loans use your RV as collateral, which means that the bank can repossess the RV if you fall behind on your payments. However, secured loans tend to offer lower interest rates and higher borrowing amounts. Unsecured loans do not use collateral, but you may not get as much money as you need for your purchase.
Get Your Credit Score Up
One way to improve your odds when it comes to seeking an RV loan is to raise your credit score however you can. Pay off older credit card balances and focus on not adding to your debts when preparing to purchase an RV. A “good” credit score is anything over 700, while a “poor” credit score is under 550. Lenders always look for a good credit score.
Visit one of our dealership locations in South Windsor, CT; South Burlington, VT; or Plainville, MA; to check out our great selection of new and used RVs for sale. Pete’s RV Center is proud to be your New England RV dealer, serving greater Manchester, NH, and Albany, NY.
