From banks and credit unions to dealerships, there’s more than one option when it comes to finding a lender for your RV.
If you’re in the market to purchase or refinance your RV, you’ll find plenty of potential lenders, whether a dealer (through a third-party lender), a credit union, or a bank. However, finding the right fit requires a little research.
Who has the most competitive Annual Percentage Rate (APR)? Will they offer flexible repayment options? What do previous customers have to say in reviews?
Here's what to look for and expect from a lender, as well as a list of trusted options in your search.
What’s a lender?
There are three types of lenders: direct lenders (such as banks or credit unions), indirect lenders (works through dealers), bankers and loan originators (whom you’ll generally work with through loan brokers). The process remains the same — they’ll loan you money with the expectation that you will pay them back with interest.
Choosing the best lender
As you go through the process of finding the best lending option, take it upon yourself to research the choices and which will set you up for financial success in the long term. Here are a few questions to consider.
What’s your budget?
Know what you can afford. How much can you put towards a monthly payment? A down payment? Factor in other expenses like service and maintenance so you can afford any unexpected costs on top of the loan.
Your lender may also require a personal financial statement for larger loans. To learn more about Good Sam’s loan process, read more here.
How much can you pay towards a down payment?
You are likely to receive a lower interest rate if you pay down more upfront. The more liquid you are, the less your lender will view you as a financial risk.
Does your lender have good reviews?
Reviews are the easiest place to start, and a quick Google search goes a long way. What do past customers say about their lending experience? Are they in good standing with the Better Business Bureau?
How is your credit?
Even though lenders that work with Good Sam Finance Center will accept FICO credit scores as low as 600, a higher score increases your chances for approval and competitive APR’s. If you’re looking to rebuild credit, make it a point to stay on top of payments and pay off any outstanding credit balances.
Can you negotiate your loan terms?
If you can pay more, a shorter loan term may be in your best interest. Higher monthly payments will save you more in the long run while lowering the APR of your loan.
What are the best rates available?
With APR on RV loans ranging from about 7.12% to over 17%, you’ll find a lot of variance among lenders (all with different repayment terms and qualifications). Shop around and compare loan options to find the most favorable APR.
Best RV lenders (Secured/Unsecured)
Here’s a list of five highly rated RV lenders to start your search.
Alliant (Secured loan)
With no prepayment penalties, and loan amounts up to $400,000 over 20 years, you’ll find credit unions like Alliant fairly easy to work with. That being said, they won’t be able to finance just any RV, and you’ll likely have to join their credit union to access a loan.
SoFi (Unsecured loan)
If your credit is in a good place (generally around 700), SoFi could be a solid option. Loan amounts range from $5,000 to $100,000, but the APR can get as high as 23.43%. However, since they’re such a large organization, you can usually receive funding within a couple of business days.
My Financing USA (Secured loan)
The upside is they’ll work with just about anyone, regardless of credit, with fairly competitive rates. That being said, they won’t provide loans for RVs older than 12 years, or for anyone claiming their RV as a home.
LightStream (Unsecured loan)
With LightStream, you’ll generally benefit from low rates and quick approval, however, you’ll also find no flexibility on due dates, as well as limitations on how you use your loan.
Good Sam Finance Center (Secured loan)
With over 25 years of experience, Good Sam Finance Center works through some of the most trusted lenders in the industry. They offer rates as low as 7.12% and can work with any credit score above 600. Whether you’re looking to buy a new or used RV, the Good Sam Finance Center provides flexible loan options of up to 20 years and can accommodate most financial situations.
Ready for a lender?
If you’re looking to finance your RV, Good Sam Finance Center has several flexible loan options and can work with most budgets. Contact Good Sam Finance Center for your next loan.