How to Finance an RV Over 10 Years Old [Explained]

How to Finance an RV Over 10 Years Old

An RV is a unique combination of a vehicle and a home. They’re an excellent way to see the country without having to deal with the inconvenience of traveling, and you have built-in accommodations wherever you go. 

However, RVs can be rather expensive and cost you up to $500,000. If you wish to travel the country comfortably but only have a budget for buying an RV older than 10 years? Well, you might search for your problem on the internet.

But, here’s the catch:

The majority of what you’ll see are articles that don’t fully fit your goal and forum posts that are as unclear as they’ve always been. But don’t worry, we’ve put together a quick guide on how to finance an RV that is more than 10 years old.

In this article, we’ll tell you about an RV loan, the current rate on loans, the steps of financing an RV over 10 years old, and some extra points, providing answers to any questions you may have.

So, let’s jump right into it.

What Is an RV Loan?

An RV loan is a long-term way of financing your RV over time. It is generally issued by banks or credit unions.

If you want to finance a 10-year-old RV, some private RV-related businesses will be a better choice to provide financing. Because RVs vary in size and price from small and feasible to huge and luxurious, similarly, RV loans range in size and terms. 

Many people who purchase RVs depend on these loans when buying an RV.

Here’s what’s impressive:

You can use a personal loan instead of a credit card for small RV purchases. And depending on the lender, you can find RV loans for as little as $25,000 that are repaid over a few years or loans as large as $300,000 that are payable over 20 years. 

Furthermore, most lenders will consider the RV as collateral for the loan. As a result, you will not require any additional insurance.

Present Loan Rates

On average, RV loan interest rates range from roughly 4.25 percent to 11 percent, depending on the borrower’s loan amount and creditworthiness. If you have a good credit, RV financing rates  start at 4.25 percent. 

However, if you have bad credit, such as a FICO score below 570, you’ll get rates as high as 23 percent. In this situation, putting down a higher down payment may boost your chances of getting an RV loan as it decreases the amount you need to borrow and reduces the lender’s risk.

Now here’s a table comparing different rates given by other banks to provide you with a better look as of May 2022:

 RateTermsMinimum loan ($)
[1] LightStream4.29% – 11.89%24 – 84 months5000
[2] Navy Federal Credit UnitStarting at 8.09%Up to 180 monthsN/A
[3] U.S. BankStarting at 5.24%Not specified25000
[4] USAAStarting at 5.75%12 – 180 months5000
[5] Suntrust BankStarting at 4.74% to 5.74%Up to 240 months58301

How to Finance an RV

Step 1 of 6: Set a Budget for RV Financing

You may determine how much RV you can afford by evaluating your finances and figuring out how much space you have in your monthly budget. 

If you’re looking to buy a used RV over 10 years old, choose your prices wisely while keeping the condition of the RV in mind. To summarize, the following factors should be considered while preparing a budget for financing an RV:

  • Family Size 
  • Loan Repayment Terms 
  • Gas and Maintenance 
  • Utility Costs 
  • Camping Fees
  • Insurance

After setting a budget, start saving a small amount each month before applying for financing and move on to the next step.

Step 2 of 6: Save a Down Payment

RV dealerships need a minimum down payment of 10% of the buying price or even up to 20%. Bigger down payment will reduce your monthly payments, as well as your interest rate and overall loan cost. Start saving for a down payment as soon as you find your ideal RV to guarantee you’re ready to take the plunge when you find one.

If you have weaker credit, putting down a higher down payment may boost your chances of getting an RV loan because it decreases the amount you need to borrow and reduces the lender’s risk. This may allow you to qualify for a loan with an affordable interest rate.

So, put some thought into the down payment.

Step 3 of 6: Examine Your Credit Score 

Creditworthiness is essential for RV Financing. Some lenders are more rigorous and will not issue RV loans for people with bad credit. So, to qualify for the best RV loan rates, make sure your credit score is in good shape.

If you want to finance an RV at a cheap interest rate, you’ll need a decent credit score. A credit score of 700 or above is desirable to get the right loan for an  RV loan.

A bonus hint: Some lenders may also provide savings if you enroll in auto-pay on your credit card billings.

Step 4 of 6: Select the Type of Loan for Financing the RV

Generally, loans are either secured or unsecured. Some RV loans are secured, while others are unsecured.

Smaller RV loans are typically unsecured and are more like personal loans. Most banks provide unsecured loans ranging from $5,000 to $100,000 for the purchase of RVs. It can help you become pre-qualified and financed more quickly. Furthermore, there is no risk of your RV being repossessed in case you fall behind on your payments. 

However, if you’re buying a higher-value RV, banks provide secured loans with the RV as the collateral. If you fail to make payments on your RV loan, the lender has the right to repossess your RV. 

Step 5 of 6: Compare Lenders

Now that you’ve chosen the type of RV you want to buy, it’s time to select the lender for your RV loan. If you wish to finance an RV through the dealer, they will present you with financing alternatives. This is the most convenient method as they handle all loan details for you, but they may not always offer the best prices.

It is advisable to evaluate numerous lenders because different lenders provide different conditions. A wise rate of shopping should suffice. Browse for lenders online to finance your RV and save thousands of dollars on the life of the loan.

Step 6 of 6: Negotiate the RV’s Price

When you find the RV you want to buy, don’t limit yourself to the market price. Negotiate with the dealer you want to buy the RV from to get a lower price. It is not uncommon for new vehicles to receive 15% to 25% off the market price.

By lowering the purchase price of an RV, you can reduce overall financing costs.

After all, you will be making a substantial financial investment, so find the greatest offer you can!. 

Don’t Forget Insurance for Financing Your RV

When it comes to RV loans, insurance coverage is critical. To finance your RV, you must provide proof of insurance to your lender.

So, talk to your insurance company and get good coverage to meet your lender’s requirements.

If you follow these easy steps and maintain a good credit score, you’ll be able to finance that RV you’ve wanted to buy.

Frequently Asked Questions [FAQs]

Can Anyone Cosign an RV?

It depends on your lender’s guidelines. Co-signers are typically permitted on large loans, such as RV loans.

Are RV Loans Deductible from Taxes?

Yes, RV Loans can be deductible from taxes because RVs act as your primary or secondary residence. Any RV tax deductions will necessitate additional paperwork to prove the write-off claim, so be sure to obtain all relevant information.

Conclusion

Above mentioned steps were the simplest options for financing an older RV. Financing an RV is not more complicated than financing a car.

There are a few extra considerations, but the process is rather simple. You must conduct thorough research to locate the most appropriate lender or credit union. 

That concludes our discussion on how to finance an RV that is over 10 years old. Now, we have some questions for you.

Will you follow all the steps? 

What kind of RV are you getting?

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