How To Get The Best Deal For Your RV Financing

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Getting an RV, whether second hand or brand new, is a huge investment. And given its relatively high price, most RV owners need financing to purchase their motorhome or trailer. Fortunately, there are several RV financing programs you can find, but not all of them might work well on you.

Anyone would want to get an ideal agreement, especially when making a costly purchase like an RV. But to make it possible, you need to have the right strategies. Else, you might end up with financing that would cost more than you intend to pay. 

Check out the following points to help you get the best deal for your RV financing. 

Determine Your Budget

Like any investment, reviewing your financial situation is essential when planning to purchase an RV. It would be impossible to get the best deal for your RV financing if you don’t know where you stand financially. 

An RV may cost around $10,000 and $300,000, and you would need to determine how much you want and can afford to spend. By knowing what you can afford, you would be able to set a more realistic budget for your RV. 

Your budget is one of the determinants for the type of financing that’s best for you. But note that the monthly payment and total cost of the RV aren’t the only factors you need to consider in your budget. You would have to take into account other associated expenses with owning and using an RV as well.

From basic travel trailers to luxurious motorhomes, there is an RV that’s right for your budget. Once you know what you can manage to pay for, you can start looking for the financing that suits you best. 

Research About RV Loans

An RV loan is a type of long-term financing that you can utilize to purchase a motorhome, travel trailer, or camper. You can find several lenders that offer RV loans, but it would be best to do your research first. By doing so, you’d be able to decide which type of loan will work better for you. 

RV loans are typically underwritten as a personal loan, but they can be secured or unsecured loans. If you want a loan with lower qualification requirements and interest rates, secured loans may be an excellent option. But since such loans are secured against your RV, the lender can repossess the vehicle in the event of a default. 

On the other hand, unsecured loans may have higher qualification requirements and interest rates. But the good thing is your RV won’t be taken back if you default since the loan isn’t secured against the vehicle. Moreover, an unsecured loan may be a better option for you if you have excellent credit and don’t want your RV to be repossessed in case of a default. 

RV Financing Tips

However, if you have poor credit yet want the lowest possible interest rate and can ensure to pay consistently, a secured loan may be the appropriate choice. Researching RV loans beforehand can help you weigh your options realistically.  

Compare RV Financing Lenders

Once you’ve decided on your budget and the type of loan you want, you can shop around different lenders, such as banks, credit unions, and dealerships. You can also consider checking out online financing programs like

Bear in mind that each lender offers different rates based on your loan amount, term, down payment, credit score, and other factors. Comparing them is essential to find the one with the best interest rates and terms. By doing such, you may be able to save hundreds or thousands of dollars each year. 

But apart from paying attention to their competitive rates, their qualification requirements are also worth considering. Unless you have an excellent credit score, you might not qualify for the lender with the lowest interest rate. It’s vital to be realistic when shopping around multiple lenders. 

Be Patient

It may take several negotiations before you get the best deal for your RV financing. Though you may negotiate your price and rate, the dealer or lender may disagree with you. But don’t commit quickly to any of them. It would help if you are firm with your budget, so you don’t easily fall for their low-interest rate offers.

Many dealers or lenders will be willing to negotiate with your price and rate, especially if they know you can access other financing programs. But never hesitate to leave if they still won’t improve the terms or agree to lessen the cost to a reasonable amount. In such a case, you might need to look for another option elsewhere. 

Consider Alternative for RV Loans

There are other ways to finance your RV, aside from getting an RV loan. If you think you wouldn’t be able to snag the best deal on an RV loan, other financing options might be worth considering.

Paying the RV in cash is always the best option since there’s no interest. But saving as much money as you can is also an excellent idea so you’d only need to borrow the lowest loan amount. 

If you’re a homeowner, you can also opt for a home equity loan to finance your RV. Depending on your lender, you can leverage between 80 to 100 percent of your equity at a much more affordable rate than you’ll get with other loans. It’s important to remember, though, that your house is the collateral, and it could go into foreclosure if you default on your loan. 

But whether you’re getting an RV loan or its alternative, your goal is to snag the best deal to purchase or finance your RV. The key is being firm with your budget yet also being flexible with your options. 


Financing an RV is a significant decision. You will need to weigh every possible option if you don’t want to get into any financial difficulty later on. Keep in mind that RV financing isn’t the end of your concerns. And getting it wrong might affect your RV plans in the future. 

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