How to Find an RV Financing Company
Once you’ve made the decision to buy a recreational vehicle, the next challenge is finding the right company to finance your purchase. You need a company that is not only accepts you as an RV loan customer and gives you a good rate, but also is reputable. You will have a relationship with this company for a long time, so make sure you are comfortable.
Not every lending institution is prepared to offer loans on travel trailers, fifth wheels and motor homes. Even so, you can often find a local company willing to give a shorter-term loan with a higher interest rate—even if they don’t normally offer RV loans. This might be okay if you expect to pay off the loan early.
For most prospective RV owners, though, a longer-term loan and lower interest rates are important. Here are the most common options for financing companies, along with some of the pros and cons of each:
Sources of loans
Financing company specializing in RVs: This can be a good option if the company is reputable. Be sure to do your research! Because they specialize in RV financing—and it can be more complicated than auto financing—these companies often have the process down to a science, which can save time and confusion. Interest rates from financing companies can be higher than normal, so be sure to negotiate. Find comparable loans to help you bring the rate down. Keep an eye open for interest rate sales.
Your RV dealer: If you found your rig through a commercial dealer, you likely will be offered the option of on-site financing. One benefit of this is that you may have support from your dealer if you have problems with the financing company. However, the interest rate can be elevated. The best way to counteract this is to get approved for a loan off-site before you go looking (just as you should when you buy a car). Then, you have leverage to negotiate.
Bank and credit unions specializing in RV financing: A traditional financing company, this option often is chosen simply for peace of mind. The interest rate is likely to be more moderate, because a traditional institution doesn’t want a reputation for inflating rates. Banks also sometimes offer sales. If you are a member of a credit union, it might help you find a loan if your credit is less than ideal. As with all options, negotiate if you can.
It’s tempting to jump right into it with both feet, so you can get on the road ASAP. But this is a time to slow down just a bit, do your research, get pre-qualified and negotiate the best possible rate. Then, you can breathe…and get ready for fun!