While there are many options available for financing your RV, not all the loan offers will suit your unique financial situation. We suggest a few foolproof ways of securing the right RV loans for you in this article.
- Shop around
Even when your trusted dealer might have no intention of ripping you off, the next dealer just might have a better offer for you. Besides that, there are specific advantages that each option offers, from dealers to banks, to credit unions, etc.
The only way to make an informed choice that suits your budget is by shopping around and comparing your options. Getting RV loans with My Financing USA will ultimately give you peace of mind.
- Research the best RV loan rates for your credit score
Your chances of being approved for a loan is directly proportional to your credit score. Poor credits scores, such as 579 and below might make it almost impossible to get a loan, except through lenders who charge exorbitantly on interest.
Credit scores such as 740 and above, however, will qualify you for your desired loan amount at a competitive rate.
- Take advantage of the loan calculators on loan financing websites
Visiting the websites of your choice lenders and availing yourself of the free tools such as loan calculators and preapprovals can give you a fair idea of the different rates and how much they translate to as monthly payments.
Not only does this give you an idea of the kind of loan you can afford, but you can also proceed to the dealership feeling self-assured with this knowledge.
- Decide what kind of loans will suit your pocket in the long run
You can either apply for secured or unsecured loans. For secured loans, the RV itself is used as the loan collateral and can be repossessed in cases of delinquency. Unsecured loans, however, pose a greater risk to the lender and they, in turn, charge higher interest rates.
- Choose a loan plan that allows flexible repayment
Some loan terms allow you to repay in small amounts within a long duration while others allow you to pay back in huge chunks over a short period. You can go for an in-between option, one that will not penalize you for paying off your debts too early in monthly installments.
- Know the value of the RV you are about to finance
Recreational vehicles, especially brand-new ones, are quick to depreciate. Their market value sometimes drops as low as 20%.
So if you do not plan to have the RV for a long time (if you plan to resell or trade it for another), you may not be able to get back as much as you paid for it to repay your loan.
You should, therefore, consider requesting other less expensive options whose down payments you will be able to afford and repay more easily.
Note that while online lenders and dealers typically offer more comfort, ease, and speed than banks, the latter are generally more equipped to offer financial advice and handle your application.
You will have to decide which is of utmost priority to you at the point of application: speed or efficiency.