Even with high gas prices and stricter credit standards, RV sales in the US continue to be strong. According to Bankrate.com, about 8 million American households own a recreational vehicle. Most people finance the purchase of an RV, so it is very likely that you will approach your bank for a loan. By following a few simple tips, you can increase your chances of financing your travel dreams.
Why buy an RV?
According to the Recreational Vehicle Industry Association, people have four main goals when purchasing these vehicles:
Read about rv dealers that finance bad credit near me
Before you start looking for RV sales, you need to secure financing for your purchase. Since an RV is considered a luxury item, you will need better credit than you would need to buy a car. You should also expect to complete a full financial statement rather than just undergo a quick credit check. Follow these tips when shopping for the best loan:
- Check the interest rates in various places. Banks, credit unions, and private finance companies can be good sources for loans. You can save thousands of dollars when you take the time to buy the best rate.
- Be realistic. If your credit score is not that good, you may not qualify or meet the best interest rates on the market. However, a low score does not mean that you are automatically disqualified from obtaining a recreational vehicle loan.
- Choose your term. The average term of the RV loan is 10 years, but you can extend your loan up to 20 years. Just keep in mind that a vehicle purchased from RV sales may not be worth what you owe on it if you extend your loan for a longer period of time.
- Enjoy a tax break. Your RV is considered a second home as long as it is equipped with sleeping, toilet, and cooking facilities. Therefore, the interest on your RV loan can be tax-deductible.
- Consider automatic payments. If you are travelling a lot, you may not always remember to make your loan payments on time. Sign up for automatic payments, so you don't miss out on payments while travelling.
By following these tips, you can reduce the cost of financing your RV while taking your vacation to the next level.