For people who love to be on the go, a recreational vehicle (RV) can open up an entirely new world of freedom and possibilities. Recreational vehicles are available in varying sizes, models and prices, and can be purchased brand new or used. The first step to a life of freedom and travel is to determine the best financing options for a new RV. There are many financing options available depending on the type of recreational vehicle, whether it is brand new or used, and the credit history of the borrower.
New RV Financing
New RV financing is the easiest type of financing to acquire. Most banks and lenders offer financing options for new recreational vehicles as long as they meet a few set requirements. Each bank is different, so the terms and requirements will also vary slightly. Although banks typically prefer borrowers to have good credit, it is possible to obtain financing for an RV with bad credit.
Used RV Financing
A used RV loan is slightly harder to find, but many banks and lenders do offer used RV loans. It is important to have good credit and to be sure the recreational vehicle is in working condition. There may be a higher amount of up front paperwork needed when financing a used or old RV. A used RV loan will sometimes be offered through the company where the used RV is purchased.
RV Refinance Loans
Refinancing an existing RV loan can save an owner thousands of dollars over the life of the loan. Most interest rates are much lower today than they were several years ago. The cost of refinancing an RV loan is minimal compared to the money that can be saved. Many owners who have improved credit can also refinance at a lower rate. If the existing rate of an owner's RV loan is higher than current interest rates, it is probably wise to consider refinancing the loan.
An easy tool to use when determining financing options is an RV loan calculator. Many websites offer online RV loan calculators that estimate payment amounts based on RV loan rates, down payments and price of the recreational vehicle. Financing a recreational vehicle is not a difficult process, and usually requires minimal paperwork. The enjoyment that will be gained from years of traveling the open roads and freely exploring the country will be well worth it.