There are several ways to finance a used RV, but it’s important to understand the condition of the vehicle before purchasing.
If you’re in the market for a used RV, it’s certainly a buyer’s market. From a wide selection of inventory to multiple outlets for financing, you have plenty of options to find a reliable and affordable rig. While it’s a good problem to have, knowing where to look can be overwhelming.
Where can you get a used RV loan? What should you consider before financing a used RV? Should you finance a new or used RV?
To help get you started, here’s a quick list of considerations before financing a used RV.
Should you finance a new or used RV with a loan?
If you’re ready to buy, it’s important to know what you’re committing yourself to — not just in terms of cost but also the maintenance going into your RV. Buying a new or used vehicle will factor into the longevity of your purchase and the amount of work that comes along with it.
The upside of financing a new RV is the lack of stress on the front end. You’ll have peace of mind knowing nobody else has driven it, and therefore it lacks wear and tear. Since it’s under warranty, the first few years of ownership are covered.
That being said, used RVs are substantially cheaper, considering how quickly new rigs depreciate in value. Assuming the RV stays in decent shape, you’ll stand to spend substantially less on the sticker alone.
If you want peace of mind and can afford to spend more on the front end, a new RV can be a great way to go. However, if you’re looking to save money, pre-owned is almost certainly your better option. Note the unforeseen variable of maintenance. You won’t know how much maintenance is required over the span of your RV’s life, making it imperative you do your homework before purchasing a used rig.
Options for used RV loans
When it comes to finding a lender for a used RV loan, you can whittle down your options to dealerships and traditional financial institutions.
Used RV loans through a dealership
Dealerships tend to be a better fit for RV loans. Generally speaking, they’re more connected with the industry and can therefore offer more appropriate terms. Plus, they’ll generally have online applications and give you the option to see what you’d qualify for without running a credit check.
Used RV loans through a bank
Some credit unions and banks usually offer auto loans as opposed to a true RV loan. This means they’ll usually have shorter terms, somewhere between 36 to 84 months, compared to a 10- to 20-year loan through an RV dealer or bank. Also, RV loan interest is often tax-deductible, considering that in many cases you can claim your rig as a second home. Check with your CPA for your situation.
Used RV lenders
As you search for a used RV, you’ll also want to make sure you have the right lender. Here’s a short list of well-rated RV lenders to get things started.
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 with 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 RV, or refinance, Good Sam provides flexible loan options of up to 20 years and can accommodate most financial situations.
Things to consider before buying a used RV
It’s never been easier to find a quality used RV. Don’t settle for anything that doesn’t meet your standard. As you go through the process, evaluate the rig for yourself.
Are the slides properly aligned? Has the roof been kept clean? Are the battery connections clean or corroded? Has the hot water heater been drained? Are there any electrical issues? Is there proper axle alignment? Are there any signs of mold? Has the RV been professionally inspected?
After you’ve completed an in-person assessment and taken it for a test drive, be sure to run the details through an RV valuator to get an accurate idea of what you should actually be spending on that RV.
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 any budget. Contact Good Sam Finance Center for your next loan.