Motor homes and vacations just seem to go hand in hand. Many people picture themselves out enjoying all life has to offer as they travel in total comfort in a cozy house on wheels. RV, or motor home sales are big business, but not all motor home customers prepare themselves for making the best decisions when it comes to financing.
Funding a New Motor Home Purchase
Before making a long-term financial commitment, it makes sense to calculate what the true cost of RV ownership will be. You can easily calculate the approximate monthly payment by using the same method that is used to figure out mortgage rates and payments. There are several mortgage rate calculators online that can give you a figure in seconds. All you need is the full price of the motor home, the length of the loan and the interest rate.
Buying an RV Is Almost As Costly As Buying A Home
Buying a motor home comes with many other expenses not related to the monthly loan payment. Insurance rates for motor homes cost more than standard auto insurance. Gas, oil, maintenance, parking fees and insurance will add to the overall cost of ownership.
Although the RV is one of the most expensive purchases a person can make next to buying a house or a boat, frequent travelers love not having to pay outrageous hotel bills every day.This is what makes the motor home so popular.
Finding Cheaper Interest Rates and Financing
There are many different ways to try and get financing. Some people go online and complete a pre-approved loan eligibility application. You can also talk directly to the loan officer of your bank. Motor home companies also offer in-house financing. Compare all the different loan packages to find the one that’s right for you.
Interest rates are typically higher for vehicles that are classified as recreational vehicles. Many motor home shoppers look for the best loan packages online. New technology actually allows RV customers to download an RV loan calculator to their cell phones.
You Can Refinance Your Original Loan
Most RV companies offer the ability to refinance the terms of the loan at some later date. Loans can be restructured to include better payment terms. Refinancing loan terms has kept many people from defaulting on loan payments through financial hardships. It is much better to seek out some type of refinance agreement with the lender than to ruin your credit rating which leads to even higher interest loans in the future.